RIM shares drop on growing expenses, outlook

Research In Motion saw its shares fall off in early trading on Friday on the news that despite reporting a 72 percent growth in second quarter earnings, its earnings forecast was weaker than expected, and expenses mounted.

The Canadian-based BlackBerry maker fell below expectations in its earnings forecast. As the company looks to unveil a new line of smart phones in the coming quarter, including the long-awaited Storm, which will be paired with Verizon Wireless, there were concerns that the company's expenses were growing at too high a rate. Total expenses for research and development and marketing were 21.8 percent of revenue in the second quarter, up from 20.3 percent in the previous quarter.

As RIM looks to develop its position in the smartphone market, it is finding itself in an increasingly crowded market, with Apple and AT&T Mobility's iPhone 3G and T-Mobile's G1 already looking to be the holiday handset behemoths.

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