Blackberry-maker Research in Motion (RIM) is facing a torrid
third quarter as it comes up against competition from Apple's
iPhone, new devices from Palm and Google's nascent Android
platform.
The Ontario-based company - which hit the headlines over the
summer when it attempted to buy parts of Nortel - has just reported
Q2 2010 results for the three months to the end of August, showing
sales of $3.53bn (US), up 3% year-on-year.
Net profit also declined 4% from this time last year to $475.6m,
a more modest slide than many other suppliers have been seeing
recently, but still enough to miss previous expectations and send
its share price tumbling.
Co-CEO Jim Balsillie said the firm was "entering the second half
of this fiscal year and approaching the holiday buying season with
an impressive product portfolio, continuing business momentum and
strong marketing support from our partners around the world."
But despite RIM's optimism, analysts have been quick for
forecast a tough few months for the supplier. Average selling
prices in the smartphone market are still declining, and with much
of the Blackberry's appeal lying in the hamstrung corporate market,
the sales outlook is less than outstanding.
RIM says it is aggressively pursuing the cheaper end of the
market, particularly consumers, and its Blackberry 8520 Curve has
been a steady-seller, but the company will have to shift a lot of
kit at a lower price point in the run up to Christmas if it wants
to turn things around.
A version of this story originally appeared on
Microscope.