RIM share price dips on revised quarterly profit estimates and response to Playbook

Warwick Ashford

Shares in Blackberry maker Research In Motion (RIM) fell up to 17% after the company announced its quarterly revenue may drop due to product delays.

According to the revised outlook, RIM's revenue will be $4.2bn to $4.8bn in the fiscal second quarter, below average analyst estimate of $5.47bn, according to Bloomberg. RIM said it was planning job cuts.

RIM's shares were down as much as $5.83 to $29.50 in after-hours trading in New York, bringing the total loss of value to 39% so far this year.

RIM's share price was hit by its loss of US market share to Apple's iPhone and handsets running Google's Android operating system, and by the poor market response to the launch of RIM's Blackberry PlayBook tablet computer.

RIM's share of US smartphone market dropped 4.7 percentage points to 25.7% in April from three months earlier, according to ComScore.

The company announced plans to cut an unspecified number of jobs and make organisational changes to speed up product development.

Although RIM announced a new version of its Bold phone in May, the Bold and other new devices will be available only later in the quarter, RIM said.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

COMMENTS powered by Disqus  //  Commenting policy