RIM today announced its third quarter results, which beat the street estimates. The BlackBerry maker shipped 6.9 million smartphones and 255,000 PlayBook tablets during the quarter even as it faces eroding user base while it continues to devote resources to its BlackBerry 10 operating system, which will be unveiled on January 30. The company posted an adjusted net loss of $114 million, marking its fourth consecutive quarter of posting losses. RIM also announced it had 79 million BlackBerry subscribers, which is approximately 1 million lower than what RIM reported in its last quarter. Surprisingly RIM almost doubled its PlayBook shipments this quarter while BlackBerry smartphones declined by approximately 500,000 units during the same period. Also Read - BlackBerry to reportedly launch an Android smartphone
Revenue for the third quarter of fiscal 2013 was $2.7 billion, down 5% from $2.9 billion in the previous quarter and down 47% from $5.2 billion in the same quarter of fiscal 2012. The revenue breakdown for the quarter was approximately 60% for hardware, 36% for service and 4% for software and other revenue. During the quarter, RIM shipped approximately 6.9 million BlackBerry smartphones and approximately 255,000 BlackBerry PlayBook tablets. Also Read - BlackBerry piggy backs on Amazon to get 240,000 Android apps for BB10
While RIM will continue to remain under pressure for at least another quarter, CEO Thorsten Heins revealed that BlackBerry 10 is currently undergoing technical acceptance program on more than 150 carriers globally, which is a good sign for the new operating system upon which RIM’s existence depends. The launch and success of BlackBerry 10 will be crucial for the company, which has already been delayed by more than a year.
RIM expects to post another quarter in loss as it increases its marketing spend for the global launch of BlackBerry 10 and at the same time could look at lowering prices of its existing BlackBerry 7 smartphones in the market.
The Company intends to continue to consider using pricing initiatives on BlackBerry 7 devices and service fees in some markets as a way to maintain our subscriber base and drive more BlackBerry users. The timing of the BlackBerry 10 launch event for January 30, 2013 could also impact sales of current BlackBerry 7 products as some customers may defer purchasing decisions and wait for BlackBerry 10 devices.
All of these scenarios are on expected lines for any company that is undergoing a transition, just like we are witnessing with Nokia.