RIM Throws Competition 'Curve' Ball

Dennis Faas's picture

Thought maybe that sleek 'n cute little iPhone from Apple would hurt sales of the efficient but not-so kitschy BlackBerry? Doesn't look like that's the case. According to third quarter sales, Research in Motion (the Waterloo-based maker of the BlackBerry) is reporting double its 2006 third quarter earnings.

The statistics stem from numbers released last Thursday. Most surprising may be that BlackBerry subscriber accounts climbed an impressive 1.65 million over that third quarter, which ended back on December 1st. In addition to 3.9 million devices being shipped, it means Research in Motion has actually doubled its earnings. (Source: thestar.com)

Profits are equally impressive. In looking at reports for the third quarter, Research in Motion (RIM) report earnings of $370 million at 65 cents a share. That leaves the Canadian company with a total revenue of about $1.67 billion, up over twenty percent from this time last year. At that time in 2006, RIM boasted it had raked in $175 million in earnings at 31 cents a share. Although those numbers were also extraordinary, the almost unbelievable leap is evidence that there are few limits for the company, its name, or its product. (Source: zdnet.com)

Given the numbers, RIM is confident it can continue to grow both its profits and stock value. The company has projected fourth quarter earnings to run as high as seventy cents a share, much higher than Wall Street estimates. When the fiscal year ends, RIM believes it will have raked in revenue of about $1.8 million.

Why the huge numbers? Why the improvement?

In responding to the reported earnings, fearless RIM leader Jim Balsillie said, "we are...pleased with the excellent consumer sales results achieved so far in the holiday buying season." Reasons for the climb are probably as simple as the lure of new products. Both the Pearl and Curve received positive reviews from the PDA community, happy to see RIM invest time and effort into products that are both cute and efficient.

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