As competition heats up, Canadian telecommunication company Research in Motion (RIM) is fast losing its standing in the increasingly competitive mobile market.
RIM reported decreased earnings in its disappointing first-quarter earnings. According to RIM's report the firm's profit has decreased to $695 million from $769 million compared to same period of last year. This led the company to lower its annual earnings outlook to range of $4.25 to $6 per share, which is significantly lower that its April forecast of $7.50 per share.
RIM said the lower expectations were due to smartphone shipments coming in on the low end of the 13.5 million to 14.5 million units it had forecast, and slower sales of high-end models compared to lower-price devices.
RIM said this lower profit will inevitably lead to cutting jobs and taking out redundancies in the current quarter.
The biggest reason of RIM decreasing profit is due to failure of RIM competition with its rival phones such as iPhone and Android operating smartphones. RIM did not even have one single smartphone that ranked within no.3 in major U.S carriers. Also, the postponed touchscreen Blackberry Bold didn't do any good for the company. Meanwhile other phones based on QNX are not due out until 2012.
However, RIM shipped 13.2m BlackBerrys in the quarter, and 500,000 Playbook tablets in the first six weeks after the introduction which was higher than the forecast of 13.6m BlackBerrys and 366,000 Playbooks.
RIM anticipates second-quarter revenue to be $4.2 and $4.8 billion.