RIM – Blackberry has announced the delay of 10 new phones by 2012

Mobile news presents… RIM (Research in Motion Ltd. – Blackberry maker) has announced about the delay of new phones which will be released on the late 2012 last Thursday.

One of the Co-CEO of Blackberry Mike Lazaridis confirmed that the new phones will not be released until mid 2012 to ensure highly integrated chipset built on new phones. It will affect the shipments and expect a delay on 2012.

The new platforms will affect the RIM’s market future since most of the U.S users use touch screen smartphones like iPhone and other Google Android based smartphones as articulated by the analysts.

RIM admitted that the Blackberry sales will decline by the quarter of holiday. iPhone had already took the interest of many U.S. users which give the RIM a difficulty in making a new niche for Blackberry to hit the market.

Market researcher NPD group stated that RIM had already fluctuated 44% in 2009 to 10% on this year on their Blackberry sales in U.S. In the other hand, RIM relies on their sales overseas were Blackberry succeeded. But in Thursday, RIM fell 7% in extended trading.
The 10 new Blackberry phones will serve the latest series of RIM smartphones on 2012. After selling the Playbook at a very low price last October, Blackberry had gained millions of buyers which aided RIM to hit the market in a low profit. After the inconvenience caused by an Aired Canada fight, RIM fired two executives and the head of its operation in Indonesia that was charged due to stampede where there were injuries as reported.
The new phones will be using the same operating software as the PlayBook has been using, said RIM. RIM disclosed that its company fluctuated 71% as the revenue fell which charged them to use the same Operating Software for the new phones. “We ask for your patience and confidence,” Lazaridis said.

At the end of November 6 this year, RIM hit $265 Million or $0.51 per share which differ last year where the company hit $911 Million or $1.74 per share – 6% revenue fell of $5.2 Billion. $485 Million was charged on PlayBook before taxes.

14.1 Million Blackberry phones and 150, 000 PlayBook Tablets were shipped throughout the third quarter. Most of the investors focused on the fourth-quarter’s distribution since the earlier quarter had showed them a result.

RIM announced that they will be selling fewer Blackberrys’ but it was predicted last Thursday that the amount of Blackberry will be worse than expected.

Only 11 million to 12 million Blackberrys’ will be released by the Fourth quarter which differs to the previous shipment of 14.8 Million Blackberrys’.

$0.80 to $0.90 per share on the revenue or $4.6 billion to $4.9 billion is expected for the fourth quarter earnings as RIM said. But according to the FactSet, RIM will be hitting $1.15 per share on revenue of $5.04 billion which gives an expectation to the analysts.

It was said by an analyst in Jeffries & Co. of New York, Peter Misek earlier that if RIM will release no more than 12 million blackberrys then RIM has to release the phones before mid 2012 to avoid downward fluctuation on the sales by the future quarters. The new 10 Blackberry phones must be released three to nine months later than what people had expected.

“If consumers abandon this platform it can happen pretty quickly…Don’t think this is the bottom.” said Colin Gillis, a Financial Analyst of BGC who stated the start of RIM’s collapse if the guidance continues.

One of RIM Co-CEO, Jim Balsillie replied that the previous quarters were just a challenging times in the company and they are working for turning the wheel of fortune to hit the market but it will take time. “We are not satisfied with the performance of the business in the United States,” Jim Balsillie said.

Balsillie and Lazaridis stated that they have reduced their cash salary to $1 per year but still they were able to earn stock options and compensations.

After the results were leaked on Thursday, RIM’s stock fell $1.15 to a new seven-year low of $13.98 in extended trading.

“We recognize our shareholders may feel we’ve fallen short,” Balsillie said

75% of stock values were lost or earning only $8 billion this year comparing to the $70 billion of market value a few years ago.

eMobileNews.net (c) 2011


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