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RIM ships 11.2 million BlackBerries, hints two new phones

updated 05:35 pm EDT, Thu June 24, 2010

RIM passes 100 million BlackBerry mark

RIM today broke another company record as it shipped 11.2 million BlackBerries in its spring quarter. The milestone was a 43 percent spike over results a year ago and also saw RIM sell its 100 millionth BlackBerry since it began selling the devices as phones. About 4.9 million of these were new to BlackBerry service, and 46 million BlackBerry accounts are still active.

The company attributed a lot of its sales to those outside of North America; about 40 percent of them were from outside the area, RIM said. It believed it could have shipped more if supply of certain phones hadn't been tight. Some of this came from already high demand of the Curve 8500 line. Low prices on many of the phones were credited to the jump, including Verizon's Buy One Get One giveaways.

Sheer revenue was also up about 24 percent to over $4.2 billion, and its profit grew by a wider ratio, up 41 percent to $768.9 million.

During a conference call to discuss the results, the company also hinted that there would be two new high-end devices shipping soon. It wouldn't say what these were but said they would contribute to its summer quarter ending in August; at least one would have its effect on revenue spill over to the fall, the company said. One of these is unofficially known to be the BlackBerry 9800, RIM's first touchscreen slider. BlackBerry OS 6 is due to ship by September and is known to be shipping first with the 9800.

The company was confident in its outlook for the future but notably showed signs that its growth might be more modest. It expected its revenue to climb to between $4.2 billion and $4.4 billion, but it didn't anticipate new subscriber additions to grow significantly. It would add between 4.9 million and 5.2 million fresh users, or as much as it did in the spring. It would have 11.6 to 12 million BlackBerries shipped this year.

While a high mark for RIM, the results were still relatively disappointing for investors as they came at the low end of the company's guidance from three months ago. RIM blamed some of its results on both the shortages and on a shift towards lower-end phones. For its outlook, it also warned that timing of its new phones could cause problems but also said that summer has traditionally been slow, particularly in Europe.

The circumstances could play into the hands of Apple, which is encountering potentially record sellouts and is likely to increase its market share relative to RIM's now leveling growth. iPhone sales have historically been highest in the summer. Android is also making incursions and, at 160,000 phones sold per day, could overtake RIM if the rate is truly sustainable.


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By Electronista Staff
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Comments

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    +4

    160,000 per day is 14.5 million per quarter

    Why wouldn't 14.5 million per quarter be 'sustainable' when, Nokia sells 100 million per quarter (feature phones/smart phones combined), or say, compared to RIM's 11.2 million per quarter.

    I don't see Android's numbers being out of whack at all, they'd have to be doing that, or we wouldn't be talking about them as an iPhone competitor.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +2

    comment title

    It would have 11.6 to 12 million BlackBerries shipped this year.

    Wow, it sold 11.2 million this quarter alone, but only expects to ship 12 million the entire year?

    While a high mark for RIM, the results were still relatively disappointing for investors as they came at the low end of the company's guidance from three months ago.

    See what happens when you give accurate guidance? Investors get all mad because you didn't have an incredible quarter. That's why Apple, MS, etc, always give lousy numbers for guidance. They can make things sound really impressive then.

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    0

    RIM appears to be going down the tubes...

    Investors were not happy at all with these figures and share price is down further. There's just too much pressure from iOS and Android devices for this company to ever come back to its former strength. There's still some strength left in the corporate sector, but looks as though the consumer side will not have much future growth at all.

  1. cube55

    Fresh-Faced Recruit

    Joined: Jun 2010

    -1

    RIM's doing great!

    "It would add between 4.9 million and 5.2 million fresh users, or as much as it did in the spring. It would have 11.6 to 12 million BlackBerries shipped this year."

    Whoop's again MacNN... I think you mean adding 12 million subscribers, not selling units.

    "About 4.9 million of these were new to BlackBerry service, and 46 million BlackBerry accounts are still active."

    How can the article state "Still active" when numbers are growing? Such poor journalism from MacNN yet again.

    These are strong results from a great handset maker. Not sure why all the iPhone fanboys are downplaying these results. These are great smartphones from the company that practically paved the way for Google and Apple. Just because it doesn't have an Apple logo on the back, doesn't mean it doesn't do its job really well.

  1. @okli

    Banned

    Joined: Apr 2010

    +5

    @ cube55...welkome granny

    I see U just join here because of nostalgic reasons
    bury U'r Berry... its a dead OS... DUDE
    the numbers are right ... U forgot... Rim's
    buy one .... get one for free deal
    they need to give 2 for free in the future...
    to keep those numbers...

  1. slapppy

    Fresh-Faced Recruit

    Joined: Mar 2008

    +2

    Awesome

    I knew that keeping that "buy one get one POS" will keep those shipping numbers high. Genius!

  1. cube55

    Fresh-Faced Recruit

    Joined: Jun 2010

    -1

    bogo not bad

    You do realize that buy-one-get-one is a carrier decision right? Verizon purchases both from RIM and it's up to them how they bring them to market. How is BOGO ($200 and $0) any different from 2 iPhones at $99?

    Faulty fanboy logic.

  1. ryan_2

    Fresh-Faced Recruit

    Joined: Jul 2010

    0

    RIM woes

    For companies like Blackberry and Kraft who were riding high last year, now it looks like they may be not only stalled but are headed for a downward revenue gap. Why do companies think doing more of the same thing will help them compete?

    http://bit.ly/bl3WLK

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