Blackberry maker Research in Motion (RIM) has missed second-quarter earnings targets because of lower demand for older models.
Revenue for the second quarter of fiscal 2012 ending 27 August was $4.2bn, down 15% from the previous quarter and down 10% compared with the same period the year before.
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Jim Balsillie, co-chief executive at RIM, said shipments in the quarter were below forecast due to lower than expected demand for older models.
He pointed out that RIM did launch a range of Blackberry 7 smartphones around the world, but that was in the latter part of the quarter.
"We are seeing strong sell-through and customer interest for these new products, and will continue to build on the success of the Blackberry 7 launch to drive the business as we focus our development efforts on delivering the next generation, QNX-based mobile platform," Balsillie said.
But this was not enough for some investors, with shares in the company falling nearly 20% in after-hours trading, according to the Financial Times.
RIM has been struggling to keep pace with its rivals in the past six months and has seen its share price fall more than 50% because of delayed product launches and a succession of lower earnings guidance, the paper said.
Net profit for the quarter fell to $329m, down from $797m in the same period a year earlier and revenue fell to $4.2bn, a drop of 10% compared with the year before.
During the quarter, RIM said it shipped 10.6 million Blackberry smartphones and about 200,000 Blackberry PlayBook tablets, but these figures were well below analysts' expectations.
Analysts blamed the fall in demand for the PlayBook from 500,000 in the previous quarter on the fact that RIM had rushed the launch of the PlayBook, releasing it without basic features such as embedded e-mail, calendar and address book applications, according to the Guardian.
RIM said it expected things to improve in the third quarter, forecasting shipments of between 13.5 million and 14.5 million smartphones and revenues of between $5.3bn and $5.6bn.