RIM beats forecasts on consumer sales

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RIM beats forecasts on consumer sales

Alex Scroxton

Canadian mobility vendor RIM has beaten expectations for the second quarter of its fiscal 2010 - which closed on 28 August - after sales rose 31% year-on-year to $3.53bn and net income soared 67% to $796.7m.

Device sales accounted for 79% of sales, with services at 17% and software at 1%.

Growth in consumer sales of the firm's BlackBerry product, as opposed to RIM's bread-and-butter enterprise business, was clearly behind the firm's improving numbers.

The market has swept along by a growing wave of interest in smartphone devices in both the business and consumer spheres, and RIM has been under pressure to up its game and compete with the sector's golden boy, Apple and its heir apparent, Android.

The firm claims over 50 million BlackBerry subscriber accounts, and said it upped new subscriber accounts by 4.5 million during the quarter, shipping 12 million units in the process.

"We expect a continuation of this momentum in the third quarter as we extend the rollout of new products, including the BlackBerry Torch into additional markets and benefit from heavy promotional activities and increasing customer demand as we head into the holiday buying season," said CEO Jim Balsillie.

Speaking on a conference call, Balsillie said RIM was planning some "interesting strategic extensions" at its upcoming developer event, which has fuelled speculation that the firm is planning to release a tablet device.


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