Research In Motion (RIM), maker of BlackBerry smartphones, has forecast first-quarter revenues and profits that fail to meet analysts’ estimates. Its launch of new models like the Torch has failed to stop a slide in its market share.
The average of analysts’ estimates were compiled by Bloomberg for comparison. Below are the key numbers:
| First Quarter Forecast | RIM | Analysts average estimate |
|---|---|---|
| Profit per share | $1.47 – $1.55 | $1.66 |
| Revenue | $5.2 – 5.6 billion | $5.65 billion |
| Gross Margin (% sales after production costs) | 41.5% | 42.7% |
| BlackBerrys shipped (4th Qtr) | 14.9 million | 15 million |
In the meantime, Bloomberg quotes Pierre Ferragu from Sanford C. Bernstein & Co as saying that “The company’s sales in the high end have been shrinking for the last 12 months, even if the launch of the Torch has slowed down the trend in the last two quarters.”
Although RIM has traditionally been the darling of large corporations because of its secure messaging, it has seen customers adopting rival devices.
Hugo Miller of Bloomberg reports that JPMorgan Chase, Bank of America and Citigroup are some of the banks that has begun testing iPhones and Android devices late last year, according to at least three people familiar with the trials.
The table below summarises how RIM’s share of worldwide smartphone sales has slipped from a year earlier, compared to its rivals.
| Worldwide smartphone marketshare | RIM | Apple | Android |
|---|---|---|---|
| 4th Qtr 2010 | 14% | 16% | < 11% |
| 4th Qtr 2009 | 20% | 16% | 16% |
RIM PlayBook debuts in US on April 19
RIM will be launching the PlayBook in the US on April 19, while the company is already taking orders.The company revealed that the tablet would be able to play apps from Google’s Android.
The PlayBook will strive to chip at the huge market share that Apple has enjoyed with its iPad and iPad2.
The iPad has has a full year’s headstart over the PlayBook and has sold over 15 million units so far. Apple also claims that 65 percent of Fortune 100 companies are testing or deploying the iPad, including Procter & Gamble.
This is the same market sector that RIM targets.
Tags: BlackBerry, Playbook, RIM, Torch