RIM mobile device shipments lower than expected
By Chantal Tode
September 19, 2011
Demand for older BlackBerry models waning
Mobile device shipments were lower than expected during Research In Motion’s fiscal second quarter because of waning demand for older BlackBerry models.
The mobile device manufacturer has been racing tough times recently as it struggles to transition quickly enough from keyboard input devices to newer touch screen devices. At the end of July, RIM said it would lay off 2,000 employees and restructure senior management in an attempt to reduce costs and bring new products to market faster.
RIM shipped approximately 200,000 BlackBerry PlayBook tablets during its fiscal second quarter ended Aug. 27. During the same period, RIM shipped 10.6 million BlackBerry smartphones.
The company said unit shipments were slightly below what it had forecasted because of a lower-than-expected demand for older models.
The company’s revenue during the second quarter was $4.2 billion, down 15 percent from $4.9 billion in the previous quarter and down 10 percent from the same quarter last year.
RIM launched a range of BlackBerry 7 smartphones during the later part of the second quarter and said it is seeing strong sell-through and consumer interest for the new products.
The company will bring its QNX-based next generation mobile platform to the market next year.
Net income for the quarter was $329 million, or $0.63 per diluted share, compared with $695 million, or $1.33 per diluted share in the prior quarter.
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