RIM reports another loss-making quarter but remains positive

By Danny Palmer
28 Sep 2012 View Comments
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Research In Motion (RIM), the company behind the BlackBerry smartphone, has posted another quarterly loss.

While it represents another blow to the struggling mobile device producer, the net loss of $235m for the second quarter isn't as bad as analysts expected, with shares in RIM actually rising 19 per cent after the announcement. However, it's still bleak when compared with RIM's profit of $419m this time last year.

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The company said it shipped 7.4 million BlackBerrys in the quarter, down from 10.6 million for the same period last year. Just 130,000 BlackBerry PlayBook tablets were shipped worldwide during Q2.

RIM increased its subscriber base to 80 million, but recent research by Computing suggests that BlackBerry continues to lose out to Apple and Android powered devices in the smartphone market, with just a 14 per cent share of users. However, the phone remains the preferred option for businesses, with 60 per cent of company-provided smartphones operating on the BlackBerry OS.

In the tablet market, the picture for RIM is bleaker, with Computing research suggesting the Canadian firm holds less than a one per cent share of users in a field led by the iPad.

RIM is pinning hopes of a turnaround on a selection of six new smartphones running the upcoming BlackBerry 10 OS, which are due out next year.

"Make no mistake about it, we understand that we have much more work to do, but we are making the organisational changes to drive improvements across the company, our employees are committed and motivated, and BlackBerry 10 is on track to launch in the first calendar quarter of 2013," said RIM president and CEO Thorsten Heins.

RIM cut 5,000 jobs earlier this year, following first quarter losses of $518m.

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