It has not been a good 12 months for Research In Motion as sales continue to decline and the product range fails to spark excitement within the consumer audience.
Earnings have disappointed investors for the third consecutive quarter and according to analyst Mike Abramsky, who works with RBC Capital Markets in Toronto the company are facing hard times. He told Bloomberg that their “Credibility sinks further’.
RIM issued a statement yesterday and their profit fell to 80 cents a share. This underperformed by 8 cents according to a Bloomberg survey. Revenue has also dropped to $4.17 billion in the last three months when it was predicted they would claim $4.47 billion.
Experts are blaming failures in the smartphone sector, as well as their lackluster entry into the Tablet market with the PlayBook. The iPad is outperforming the RIM tablet by 46 to 1 in the latest quarter.
RIM have just released a new series of smartphones with advanced touch screen features which they hope will boost sales and revitalise the company image with consumers. They are currently struggling to move customers away from the iOS platform and the growing Android market.
According to reports, RIM have only shipped 200,000 Playbooks, when it was factored in that they would ship just under half a million. Full year Playbook sales should average 2.2 million which pales in comparison against the iPad which sold 9.25 million units in the last quarter alone.
Kitguru says: Fingers crossed that RIM see some light at the end of the tunnel.