RIM takes a plunge in profits
A bad season for RIM
Blackberry manufacturer, Research in Motion (RIM), has seen profits plunge during the summer months due to a low demand for its PlayBook tablet and older products.
A RIM press release announced that its sales have fallen during the Q2 period. It stated that revenues were down 15 per cent from $4.9 billion (£3.11 million) to $4.2 billion (£2.67 million), and were also less than the $4.6 billion (£2.92 million) it took in the same quarter last year.
Jim Balsillie, co-CEO at Research in Motion, stated: “Overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand for older models.” Alongside this lack of interest in its later smartphones, the relatively new PlayBook tablet also suffered a severe drop in popularity. The sales of the RIM product have fallen dramatically from 500,000 to 200,000 during the last quarter.
The necessity of innovation
The RIM report did contain some good news as the company enjoyed a successful launch of its new BlackBerry 7 smartphones. RIM received plenty of consumer interest regarding its latest product, which also turned into strong sales. Balsillie said: “We 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 next year.”
The concentration upon the BlackBerry 7 and QNX operating system suggests that RIM is noticing that the key to its success is innovation. Adrian Mursec, senior developer at theEword, stated: “The production of new services and products will keep consumers interested in RIM, especially when other large competitors like Apple and Google are continuing to bring pioneering products to the market.”