RIM to delay QNX-based BlackBerry 10 devices until late 2012
Smartphone maker sees Q3 revenues bounce back, but forecasts slow Christmas sales
RIM saw revenues jump to $5.2bn in the third quarter, up 24 per cent on the previous three months, but revealed that BlackBerry 10 devices will be delayed until late 2012 because of a shortage of chips.
RIM shipped approximately 14.1 million BlackBerry smartphones during the third quarter, an increase of 3.5 million over Q2. However, shipments of the firm's 7in BlackBerry PlayBook remained disappointing at 150,000, down from 200,000 in the previous quarter.
"The BlackBerry 7 products are being well received, particularly the Bold 9900. However, product launch delays, increased competition in the smartphone and tablet markets and the October service interruption impacted our sell-through in the quarter," said Jim Balsillie, co-chief executive of RIM, during an earnings conference call.
"RIM's US business is particularly weak, and the positive trends we are seeing in several markets around the world, including the UK, France, Mexico and Argentina, have been offset by high churn and decreasing subscriber base in the US."
Balsillie added that marketing efforts over the past year have "not achieved the desired results", and that the firm will undertake comprehensive advertising and promotional campaigns in 2012.
Meanwhile, RIM also said that its strategy to take a $485m hit in order to cut the price of the PlayBook is working.
Mike Lazaridis, co-chief executive of RIM, said that the price drop is creating interest in the device, and that inventory is moving off the shelves and needs to be replenished for the Christmas sales.
However, RIM lowered fourth-quarter smartphone shipment estimates to between 11 million and 12 million, down from 14.8 million during the 2010 Christmas season, in a move that will not please investors.
Revenue in the fourth quarter is predicted to fall to between $4.6bn and $4.9bn.
Balsillie and Lazaridis also agreed to take an immediate annual pay cut to $1, but will still retain their stock options.
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