RIM records losses; entry level BlackBerry 10 phone coming?

Research in Motion may have tried to use REO Speedwagon to help promote BlackBerry 10 this week to app developers, but the company had to face the ugly truth today that it is still losing money. The company revealed that for its last fiscal quarter, it recorded a loss of $235 million, compared to a profit of $329 million for the same period a year ago.

Revenue for the quarter, which ended on September 1st, came in at $2.9 billion. However, those numbers actually were better than expected - financial analysts were predicting that RIM would only have $2.5 billion in revenue. That caused the company's stock price to go up in after hours trading today.

RIM said it shipped just 7.4 million BlackBerry smartphones during the last quarter, along with a tiny shipment of 130,000 Blackberry Playbook tablets (shipping numbers are not the same as the number of units that are actually sold). On the plus side, the subscriber base for BlackBerry devices increased to 80 million users worldwide.

News.com reports that, during the analyst Q&A that followed RIM's financial results, company CEO Thorsten Heins said that the launch of BlackBerry 10, due in the first quarter of 2013, will at first target mid and high end consumers and businesses. However, he added, "We're working on a concept for the entry level. You might see a product in the entry level by next year."

Source: RIM press release | Image via RIM

Report a problem with article
Previous Story

Microsoft on acting faster with emails in Outlook 2013

Next Story

Notch: Don't be a hypocrite about Minecraft and Windows 8


Commenting is disabled on this article.

I hope that blackberry doesn't pick up any other vendors so they already have an incredible one, in the one they purchased a few years back and what currently powers the blackberry play book, QNX.

This OS is incredibly powerful, very fast, ultra reliable and was designed for embedded markets, it's used in a lot of embedded systems from nuclear power stations to the space shuttle.

I think the problem blackberry face (which is stating the obvious) is that they were late in the transformation of QNX onto mobile phones, if they would have started this project a little earlier they wouldn't be in the state they are now.

I see two ways for blackberry the easy was which is to give up, perhaps rung he course wi blackberry OS 7 in handsets but start licensing out infrastructure and services such as their blackberry network and bbm.

This I think will be a massive mistake as early this year I had to fit out staff with new mobile phones, in the end I chose blackberrys as they are very reliable and robust but more importantly my staff travel the world which means that we saves £1000's by using the blackberry network for email. I could have gone for Nokia or the iPhone but the costs of data roaming around the world would have crippled us and made the phones worthless.

The second way which is currently what they are choosing is to continue development and get blackberry 10 devices out, this is the highest risk but also comes with the biggest rewards in that there is nothing stopping a reassurance for blackberry, if the phones are reliable, robust and modern, coupling this with the blackberry infrastructure could be a massive winner.

The main thing to aim for is profitability and not world beating number of units sold, the mac platform is very profitable but only commands a 5% markets hard, there is nothing wrong with being fourth or third as long as you bring in a profit.

Being fourth or third wouldn't have an impact on apps, as a lot of studies have suggested the number of apps doesn't equate to quality, something that windows phone can attest to, they may have a fraction but a lot of the apps are quality apps, this also translates well in a sense for these smaller segments, by this I mean that the best apps are usually ported to other platforms, meaning that the better apps will be ported to windows and blackberry anyway, leaving the cruft lingering on the google / apple App Store. Of course there will be some good apps that are native to the platform and will remain so, but again is this really a problem for the vast majority of sales?

I wouldn't count Blackberry out, they still have a lot of potential, if anything things are shaping up well for a bit of a massive upheaval.

I was a big iPhone fan, I've owned an iPhone since launch in 2007, but the iPhone 5 was a big disappointment, basically an 4S with an extra row of icons, this has pushed me to consider alternatives which I did and have a note2 on preorder, I can't wait. I mention this as I wonder how many other iPhone users are now looking elsewhere? Perhaps they will pickup an android, but more importantly perhaps they will pickup a phone from any of the 'newer' vendors such as Nokia and blackberry? (I say newer as these are kinda reapproaching the mobile industry)

BlackBerry at the moment is like Nokia a few years back.

Didn't keep up with the market, well behind and will fail and be near non-existent.

I'm sure they'll make some mediocore phones for a few years and then potentially come back as a key player again.

As there going now though, I can see them closing down to be honest.

Totalaero said,
Just start making Android versions of the phone and problem is solved. Or Windows phones..

Then it wouldn't be a blackberry.... suppose they could do what Amazon did with android though.

JessJess said,

Then it wouldn't be a blackberry.... suppose they could do what Amazon did with android though.

they really should of released a windows phone and licenced BBM to Microsoft for pretty cheap.. Microsoft OS, Nokia Maps, and BBM would of been an epic mix

Lachlan said,

they really should of released a windows phone and licenced BBM to Microsoft for pretty cheap.. Microsoft OS, Nokia Maps, and BBM would of been an epic mix

I believe that they will be back in the game, and in "black" quite soon. probably sooner than Nokia too.