RIM, LG cut outlook and sales growth

Proving that no company is totally immune to the weakened economy, Research In Motion scaled back its revenue forecast for its fiscal third quarter in the face of a dip in demand, stiff competition in the smartphone market and a precarious economic climate for handset makers in general.

The Canadian BlackBerry maker said revenues for the quarter were likely to come in between $2.75 billion to $2.78 billion, down from the $2.95 billion to $3.1 billion it had predicted in September, and below Wall Street expectations. Though demand for new BlackBerry accounts grew 57 percent over last year to 2.6 million, it was still under the 2.9 million RIM had forecasted.

The news comes as RIM has put more on the line in the form of high-end products such as the BlackBerry Bold, which AT&T Mobility is selling and the recently launched BlackBerry Storm from Verizon Wireless. 

LG, the world's fifth largest handset maker, also said it expected demand to weaken in 2009 and for sales growth to slow.

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