Research In Motion, the maker of BlackBerry, announced Thursday, December 15, 2011, that its numbers fell below analyst’s expectations. While the company shipped 14.1 million BlackBerrys last quarter, which did meet targeted estimates, its store sales declined. The company has also said that it will delay the BlackBerry OS 10 operating system until a late date in 2012.
Background Information
The decrease in end-user sales over the past few months contributed to the disappointing numbers. In particular, Research In Motion did not anticipate a bad current quarter. The company says that the PlayBook, its latest tablet, failed to connect with consumers. Those who opted for BlackBerry smartphones, bought cheaper ones. While the company did warn investors that it would not meet expectations, this has affected consumer confidence. The company also has upset customers who were subject to three-day service outages this year.
Concluding ThoughtsWhy do the disappointing numbers affect the new platform? The company says that it needs to wait for the development of a chipset for its new devices. Based on not having a release date until the end of 2012, and the decline in sales, perhaps BlackBerry does not have the needed funding. A decline in sales may certainly affect any R&D efforts. In addition, the demand may not exist anymore. While the company’s co-CEOs have said they will only take $1 salaries to compensate, other smartphone makers certainly have even more opportunities to gain market share and capitalize on a disappointing year for the BlackBerry.
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