Is RIM getting ready to fight a battle with some stiff competition?
Well Research In Motion was warned, and it seems their stock to a good old beating as Anders Bylund reports for The Motley Fool website who says: “The first-quarter results themselves weren’t bad. Revenue of $2.24 billion was more than double the year-ago haul, and it was up 18% from last quarter. Earnings per share came in at $0.84 per diluted share, up from $0.39 per share last year. Most companies would sell their aunts for a quarter like that, but it wasn’t good enough by RIM’s standards; analysts were expecting around $0.87 per share.”
Bylund goes on to report: “Sales for the next fiscal quarter are supposed to land at a strong $2.6 billion, give or take $50 million or so. But increased marketing and R&D expenses will bring next quarter’s earnings between $0.84 and $0.89 per share at best — slightly below the current consensus estimates of around $0.90. And so the stock price took an immediate 12% dive.”
Research In Motion looks to be gearing up for war; the Apple iPhone 3G hits the shelves soon, Google’s partners Samsung and Motorola will soon ship out their Android; Nokia is sniffing round BlackBerry’s home ground with their newest corporate mobiles, and there’s now rumour that Sony may joining the Android shooting star. Which means there’s big competition looming for everything theBlackBerry is doing right in the enterprise market.
Source — The Motley Fool