RIM Ships 6.9 Million BlackBerrys in Q3, Loses Subscribers

Research in Motion posted a profit during the fiscal third quarter due to a favorable tax settlement, but it also saw a considerable decrease in the amount of subscribers.

The BlackBerry developer reported a profit of $14 million, which equates to 3 cents a share. Comparatively, the firm made a profit of $265 million in 2011 during the same period, which was 51 cents a share. This year's Q3, meanwhile, saw revenue decreasing by nearly half to $2.72 billion. It reported a loss of $114 million, or 22 cents a share.

The results, however, were better than what Wall Street expected. RIM was foreseen to post a loss of 35 cents a share on revenue of $2.66 billion. RIM's stock increased by 7.6 percent to $15.19 in after-hours trading following the release of the profits statement.

RIM's customer base, though, decreased by 1 million to 79 million subscribers during the same period. The company shipped 6.9 million BlackBerry smartphones and 255,000 PlayBook tablets.

RIM stressed that it would face continued pressure during the next quarter; the firm will consider using "pricing incentives" to ship BlackBerry 7 devices, as well as potentially lowering its service fees to keep its customers and spearhead growth.

Due to the potential promotional activity and the marketing investment pertaining to BlackBerry 10, RIM expects to post another operating loss during the fiscal fourth quarter. The platform will launch worldwide on January 30, which is the date where the firm will officially reveal the first devices powered by the upcoming mobile operating system.

 

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  • iknowhowtofixit
    Sounds like 79 million people have BlackBerries sitting in a drawer somewhere that haven't been deactivated.
    -8
  • dozerman
    Sitting in drawers, huh? I can tell you for a fact that the blackberry torch in my hands that I am sending this from is not sitting in a drawer.
    7
  • anononon
    Outside the US RIMs market share is still strong. The loss of one million is suspected to be majority business's that ran to the ifail and android wagon. Come Jan. it will be very interesting to see what happens, given RIMs performance in the NYSE this past month, even investors are turning an eye.

    I am looking forward to BB10, something new and another option will be nice to have out there. The security factor is always a plus.
    4