RIM tablets fail to fly and low demand hits numbers

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RIM tablets fail to fly and low demand hits numbers

Simon Quicke

The problems at Blackberry maker Research in Motion continue with the firm following up an announcement of 2,000 job cuts back in July with second quarter numbers that exposed its issues with low demand.

Both revenue and net profit fell in the three months ended 27 August and low demand for its older products was blamed with RIMs tablet not yet making the impact that it had clearly hoped would help it offset the sluggish sales of some of its smart phone models.

Year-on-year net profit plummeted from $797m to $329m (£208m) and revenue fell by 10% to $4.2bn but it was in the sales numbers of specific problems where more concerns were raised with only 200,000 PlayBook tablets being sold in the quarter.

That number was well below expectations and given the decision last month by Hewlett-Packard to throw in the towel in the tablet market because of the strength of competition with Apple it indicates that the iPad has remained a stiff rival for RIM.

"Overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand for older models," said Jim Balsillie, co-CEO at RIM.

RIM stated that it expected the market to pick up in the third quarter and its shipments would be higher but there was an immediate impact on its after price after the financial results were issued last night.

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