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Teh One Who Knocks
06-28-2012, 09:31 PM
Smartphone sales sink as net losses seen continuing
By Dan Gallagher, MarketWatch


SAN FRANCISCO (MarketWatch) — Research In Motion Ltd. reported a sharp drop in sales for its fiscal first quarter on Thursday afternoon, and said it was pushing back the planned launch of its BlackBerry 10 operating system to early next year.

The sales decline and associated net loss for Research In Motion was worse than analysts had estimated, and the pushback of the BlackBerry 10 launch will also likely disappoint investors who had been expecting a fall launch of the new devices.

RIM shares tumbled more than 19% to $7.37 in late trading following the news.

“Over the past several weeks, RIM’s software development teams have made major progress in the development of key features for the BlackBerry 10 platform; however, the integration of these features and the associated large volume of code into the platform has proven to be more time consuming than anticipated,” the company said in a statement.

The BlackBerry 10 platform was widely seen as a last-ditch effort for the company to catch up to smartphone rivals such as the iPhone from Apple and devices using the Android operating system from Google. Apple is widely expected to launch the iPhone 5 by mid-October.

“I think it’s DOA,” Canaccord analyst Mike Walkley said of BlackBerry 10, given its now-delayed launch. “It’s too little, too late.”

RIM also said it is continuing to push its so-called “cost optimization” program that includes the layoffs of about 5,000 workers that is expected to be completed by the end of the current fiscal year.

For the quarter ended June 2, the company reported a net loss of $518 million, or 99 cents a share, compared with net income of $695 million, or $1.33 a share, for the same period last year.

Adjusted for a goodwill impairment charge, the company said it lost $192 million, or 37 cents a share, for the quarter.

Revenue slid by 43% to $2.8 billion for the quarter.

Analysts were expecting a net loss of 1 cent per share on revenue of $3.1 billion for the period, according to consensus forecasts from Thomson Reuters.

RIM said it shipped 7.8 million smartphones during the quarter — a sharp drop from the 13.2 million units shipped in the same period last year. The company said it shipped about 260,000 units of its PlayBook tablet.

The company said it ended the period with about 78 million subscribers, in line with a statement issued on May 29, which represents less than 1 million net additions to the subscriber base for the period.

PorkChopSandwiches
06-28-2012, 09:56 PM
This should be the straw that breaks the camels back

Teh One Who Knocks
06-28-2012, 10:07 PM
You would think so...they are already so far behind Android and iOS and now they have to push their launch back to next year? Nobody's gonna want it by the time it comes out (if the company is even still in business by then)

PorkChopSandwiches
06-28-2012, 10:12 PM
That's what I'm thinking companies will just move on. Its not worth waiting on, especially when they will probably delay it again.

Teh One Who Knocks
06-29-2012, 01:56 PM
By Sascha Segan - PC Magazine


I love many things about Research in Motion, makers of the BlackBerry.

I love the peppy Canadian positivity of its staff. I love its focus on battery life and network efficiency, two core features of the wireless experience that don't get enough press. I love its universal inbox, with the best Facebook integration around. I love its focus on connecting people rather than connecting apps.

It doesn't matter any more.

RIM yesterday announced absolutely brutal financial results, but the most brutal numbers were these: 260,000 PlayBooks sold in the quarter and BlackBerry 10 delayed until 2013. Or, as many in the punditocracy are saying, BlackBerry 10 delayed until never.

With such little uptake on the PlayBook and such a long delay for the new OS, developers won't be thrilled to write for RIM's platforms. App activity will wind down. The company has already hired some banks to explore "strategic opportunities."

Never mind that RIM sold 7.8 million BlackBerrys last quarter, and that its basic financials don't look bad at all. This is all about trends, and RIM's trend lines head straight into the abyss; check out this chart from analyst Jan Dawson at Ovum. As Dawson says, you can't just extrapolate the line on his chart, but if you do, the company's stone dead by Christmas.

RIM's delay means it misses the 2012 holiday shopping season, and the delay will let a smart Microsoft cement its position as the "third phone ecosystem" with Windows 8 and Windows Phone 8.

But more than that, it's about narrative and momentum, and RIM just lost both. The company has been running on the heady fumes of the upcoming BlackBerry 10 launch for a few months now. While it still has a strong position in some developing-world markets, low-cost Windows and Android phones over the next six months will eat into those.

Who Will Buy RIM, or its Parts?
So the question becomes, who wants a slightly damaged smartphone pioneer?

RIM would be more valuable if it snapped its handset division off from its profitable network and services areas. Companies like Oracle and IBM might be interested in RIM's secure network, software, and business services, packaging them up a part of a broader suite of cloud services for business. I'd add HP to this list except HP is probably a bit burned from its Palm experience.

RIM as a whole could still be interesting to Microsoft or Samsung. Reuters this morning reported that RIM's board is under pressure to form an alliance with Microsoft.

Microsoft could use RIM's deep carrier relationships to break free of a dependence on OEMs, and could mate RIM's enterprise infrastructure with its own, finally merging BlackBerry Server and Exchange the way IT managers have dreamed of doing for years. Of course, Microsoft may also be saving up to buy Nokia.

Samsung, meanwhile, is working on a plan in case Microsoft and Google decide to start making their own phones. The biggest mobile phone manufacturer in the world doesn't have a real OS to call its own; Bada and Tizen haven't reached scale. BlackBerry 10, which by all measures looks like a solid product, could be Samsung's escape route from dependence on platform providers.

It's much harder to figure out who would be interested in RIM's handset and OS unit alone. If Facebook really wants to build a phone, RIM's expertise would be affordable, but I think that's a bad move for Facebook. Someone like Huawei, with deep pockets and a lot of ambition, could benefit from RIM's high-quality supply chain and especially its huge library of patents.

Knowing the RIM team, I can't think of a prediction I'd be more happy to get wrong. Companies have come back from these kinds of death spirals - Apple is the most famous to do so - but it's rare. I think it's time for the RIM story to shift from what RIM will create next to who will pick up the pieces. And for a firm of brilliant engineers with a proud history, that's a sad story to tell.

Godfather
06-29-2012, 02:37 PM
:rofl: trading at like $7... who is still holding that stock anyways? Must just be the employees

Teh One Who Knocks
06-29-2012, 03:31 PM
:rofl: trading at like $7... who is still holding that stock anyways? Must just be the employees

Didn't you say not that long ago that you were a stockholder? :-k

Godfather
06-29-2012, 03:33 PM
I have been at various times even until fairly recently... don't forget this stock went up to almost $140 at one point. Overall RIM has made me a fair bit of money :lol:

I'm out now and don't have the guts or interest in getting back into it, even if the stock is hilariously low

Teh One Who Knocks
06-29-2012, 03:34 PM
Ah, I thought you had said you were still holding RIM stock, my bad

Godfather
06-29-2012, 03:37 PM
I probably did/was :lol: I held on too long

Godfather
06-29-2012, 03:39 PM
What if RIM just pulled out of Canada/US/Europe and just made burner phones for India, China and the middle east :lol: They could carve out a nice niche and stay alive for years...

Hal-9000
06-29-2012, 06:03 PM
people forget how just a few short years ago, Blackberry was the thing and every yuppie, gen x'ER, up and comer, was using that device and OS to do business on...

I remember a tour in our building for some clients...phone alert goes off and I swear, 6 people pulled out their Blackberrys :lol: Our sales rep caught me giggling and tried to put me on the spot - Ok hal, what does your phone sound like smart guy??

I had the screeching chimp ringtone and cranked it up to 10 :dance:

Acid Trip
06-29-2012, 06:56 PM
people forget how just a few short years ago, Blackberry was the thing and every yuppie, gen x'ER, up and comer, was using that device and OS to do business on...

I remember a tour in our building for some clients...phone alert goes off and I swear, 6 people pulled out their Blackberrys :lol: Our sales rep caught me giggling and tried to put me on the spot - Ok hal, what does your phone sound like smart guy??

I had the screeching chimp ringtone and cranked it up to 10 :dance:

Hal: My phone sounds like a barrel of monkeys. Listen.

Co-workers: :facepalm:

PorkChopSandwiches
06-29-2012, 06:57 PM
:lol: