RIM keeps losing money as revenues fall further
RIM posted its financial report on the three months period ending on March 3 this year and as you could expect there are few good news inside. The company keeps losing market share and cash and it has even come to the point where it will discontinue providing quantitative guidance for the future.
The company shipped 11.1 million phones during the three months and that include the majority of holiday shopping, which represents a 21% sequential decrease. Revenues were down 19% to $4.2 billion and RIM reports a net loss of $125 million. The reported financial results were even worse than what analysts expected, which caused the company's shares to drop in value in after hours trading.
To help turn this around, RIM is going to abandon its previous plan of reaching out to the average customers and will put all of its focus back on the corporate sector. The niche, which made the company one of the world's top manufacturers, is the key to turning the business around, according to RIM's new CEO Thorsten Heins.
We'll see how this pans out, but we'll be keeping our fingers crossed this year is a successful one for RIM. The company has been an important player in the mobile business for too long and it would be really sad if it went bankrupt or relegated to the role of an also-ran.