RIM shares plunged 15 per cent on Thursday after the firm posted first-quarter revenues of $4.9bn, down 12 per cent on the previous quarter, and a $74m year-on-year drop in profits.
Revenue expectations for the second quarter have been reduced to between $4.2bn and $4.8bn, far below the $5.2bn predicted by Morgan Stanley, which recently slammed RIM for ineffective research and development.
Despite the slump, RIM shipped 13.2 million BlackBerry smartphones and 500,000 PlayBook tablets during the quarter.
The company said that it will shed jobs in the second quarter in an attempt to boost profits and focus on areas that offer the "highest growth opportunities".
Jim Balsillie, co-chief executive of RIM, admitted that the manufacturer had a "challenging start" in 2011, and warned investors to expect a tough second quarter.
"The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook," he said.
Nick McQuire, EMEA research director for enterprise mobility at IDC, told V3.co.uk that PlayBook sales are the only bright spot in an otherwise difficult time for RIM.
"The conveyor belt of devices has slowed this year which is hurting the firm, particularly in North America. Furthermore, the enterprise space, its bread and butter, is now rapidly opening up to support its competitors," he said.
"It's a difficult transition period for RIM as it manages a migration to a new platform, so changes will have to be made to make it more competitive during this time."
McQuire suggested that the planned jobs cuts is a prudent and practical step as RIM goes through a transitional period.
"RIM has enjoyed phenomenal growth in the past, so [cuts are] natural when things cool down, especially given the pace of the market."
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