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Investors weren’t thrilled with RIM’s outlook for the upcoming quarter, despite reporting an impressive $643.03 million U.S. in earnings (up from $482.5 million last year) for the first quarter of fiscal 2010. 3.8 million new subscribers puts the grand total of BlackBerry users up to 28.5 million, which is a growth rate about on par with previous quarters. Between now and August 29th., RIM hopes to tack on another 3.8 – 4.1 million subscribers and rake in $3.45-$3.70 billion in revenue. Here are some of the reactions.
“Expectations going into this were really, really high so I think there’s going to be a little bit of disappointment with the guidance. … The guidance is a little better than initially thought from the report, but still others thought the numbers would be higher, so it’s going to be a volatile name.” – Canaccord Adams analyst Peter Misek
“They continue to do phenomenally well. There was obviously increased expectations. There was chatter that the numbers could even be bigger.” – Genuity Capital Markets analyst Deepak Chopra
“The stock had doubled this year and when expectations get that high and you don’t exceed them, you take it on the chin.” – Avian Securities analyst Matt Thornton
“The pressure on RIM is growing. It’s not just the iPhone anymore but a second competitor with something that is possibly even better than the iPhone operating system. [Referring to the Palm Pre]” – TCW Group analyst Nirav Parikh
Despite flattening growth, at least the numbers are going in the right direction, which is more than we can say for some manufacturers.
[via RIM]
About The Author
Simon Sage
Simon Sage’s education largely surrounded writing, technology and online community, leading him to begin his blogging career at www.BlackBerryCool.com and to quickly discover a vibrant and active community surrounding BlackBerry and mobile technology. In exploring RIM’s platform, he has learned what enterprises are looking for in mobility as well as what makes the innocuous BlackBerry so appealing to them. Recently Simon’s been covering RIM’s gradual move into an already-crowded consumer market, and the impact of burgeoning challengers, such as the iPhone, as well as long-time leaders, like Nokia, on BlackBerry’s advancement. With plenty of content under his belt, Simon will be branching off a bit to see what other smartphone manufacturers are working on while still using BlackBerry as a barometer. At IntoMobile, you can count on his posts being even-handed, well-informed and thought-out.
