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RIM warns of lower subs despite Storm

updated 09:30 am EST, Wed December 3, 2008

RIM Warns on Q3 2008 Subs

Research in Motion late Tuesday warned that it expects the number of new subscribers to its BlackBerry push e-mail service to fall significantly below its original estimates. The Canadian smartphone company now expects to add just 2.6 million users instead of the originally predicted 2.9 million and also expects its earnings per share and gross margins to drop as a result. The company blames the dip both on the later launches of phones like the Bold for AT&T and the multi-carrier release of the Storm.

The news reinforces previous downbeat news for RIM, which in the summer was overtaken by the iPhone despite the BlackBerry range's significantly longer presence in the smartphone market and its lead among business users. New subscriber additions only represent a subset of the total number of BlackBerries sold but reflect the relative growth of the company's overall user base; lower numbers point to more sales skewing towards existing owners than towards converts or first-time owners.

RIM is nonetheless hopeful for the current quarter, which ends in February, and says that it generated a "record level" of daily subscriber additions on the BlackBerry Storm's November 21st launch and has seen similar results in the weeks since the touchscreen model's introduction. RIM believes there is a "growth opportunity" once it ships more products.

The company plans to announce its final results on December 18th.

 
Previous Comments

Despite sprinkle, not sto

12/03, 10:28am reply

Despite sprinkle not storm. :-)

horvatic

Fresh-Faced Recruit

Joined: Apr 2002

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maybe a bit dramatic

12/03, 11:54am reply

A 10% drop is "significant"? Meh. That's practically single digits.

I still find it hard to believe the Storm is (according to them) selling so well. The Pearl looks like something most BlackBerry users would be happier with.

joecab

Fresh-Faced Recruit

Joined: Apr 2004

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