RIM cuts guidance as market heats up

Research In Motion (RIM) has forecast lower revenue than anticipated for the next quarter of €2.45 -€2.62 billion, down form the average analyst expectation of €2.66 billion.

The Blackberry manufacturer reported Q2 revenue of €2.40 billion, up 3% from the previous quarter and up 37% from €1.76 billion in the same quarter of last year.  Net income dropped by 4% to €324.5 million, compared with €338 million for the previous corresponding period.
 
The results included a charge of €76.9 million related to a patent dispute settlement with California-based Visto Corp.
 
RIM shipped 8.3 million devices in the quarter and added 3.8 million net new subscribers. By comparison, Apple sold 5.2 million iPhones last quarter.
 
In the same quarter last year, RIM shipped 6.1 million devices and added 2.6 million new accounts. It said it now supported 32 million BlackBerry accounts.
 
Speaking to analysts during the results announcement co-CEO Jim Balsillie said that RIM continued to be embroiled in a margin-squeezing land grab as it aims to take advantage of the rise in consumer uptake of smartphones.
 
“There's no question our goal is to get more and more mainstream and get more volume. We are positioning and investing for success here and that's everything. Or else the world will (pass) you by and you're a niche player,” he said.