RIM's Q4 outlook: BlackBerry shipment projections tank

RIM's Q4 outlook: BlackBerry shipment projections tank

Summary: Blackberry device shipments will be between 11 million and 12 million units in the fourth quarter, well below projections.

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Research in Motion's fiscal fourth quarter outlook disappointed on many fronts as it sees lower-than-expected BlackBerry shipments ahead.

The company said that its revenue for the fourth quarter ending March 3 will be between $4.6 billion and $4.9 billion with earnings between 80 cents a share and 95 cents a share. Blackberry device shipments will be between 11 million and 12 million units.

For the fourth quarter, Wall Street was looking for earnings of $1.16 a share on revenue of $5.08 billion.

Wall Street was officially expecting 13.1 million BlackBerry devices to ship in the fourth quarter, but many analysts were expecting to cut their estimates. Even pessimistic analysts were expecting higher BlackBerry shipments in the fourth quarter.

For instance, Morgan Stanley analyst Ehud Gelblum estimated that RIM would project fourth quarter BlackBerry shipments between 11.7 million and 12.7 million.

When compared with third quarter BlackBerry shipments it's clear that RIM is facing an inventory glut. RIM shipped 14.1 million BlackBerry devices in the fiscal third quarter.

Also see: RIM expected to cut BlackBerry sales targets

The company reported third quarter earnings $265 million, or 51 cents a share, on revenue of $5.2 billion, down 6 percent from a year ago. Those results include a $54 million charge due to a service interruption and a $485 million charge for a glut of PlayBook tablets. Backing out those charges, RIM would have reported adjusted earnings of $1.27 a share.

Topics: Hardware, Mobile OS, Mobility, BlackBerry, Security

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  • No surprise here. They should have made the jump to Windows Phone OS back

    when Nokia did. They could have reclaimed their "crackberry" status in the enterprise. Probably to late now. Bye bye RIM. Sad to say but the way you chose to go out you won't even be missed.
    Johnny Vegas
  • RE: RIM's Q4 outlook: BlackBerry shipment projections tank

    There's a comet falling into the sun this afternoon too! Good timing, RIM.
    allan_Vancouver
  • Profits show RIM would never be able to compete with Apple

    Rim made 265 million in profits<br>Apple last quarter made 6.62 billion (from revenues of 28 b)<br><br>the idea that so many tech writers bandying around for the last few years that Rim would be able to match apple or Android with some new 'white knight tech like QNX' is silly: they never looked at the $$$, RIM simply doesn't have the $$$ to compete in R&D (building up a MODERN OS or eco system is expensive). apple's new data center supposedly for running Siri and iCloud, iTunes cost over $1 billion or 4 times this quarter rim's profits! <br><br>I also predicted Palm would fail as it's expenditures were higher than it's (including WebOS) profits. <br><br>Android is also set to have problems as Google is probably making less than a billion a year off Android (2.5 b mobile revenue minus iOS two thirds share) while apple is making way over 50 billion from iOS. Google simply cannot keep pouring $$ (from it's other businesses) into android like 12.5 b for Motorola.<br><br>(I know I'm going to get flamed talking about Android but I also got flamed saying QNX -- playbook etc -- would flop more than a year ago.)<br><br>look at $$ and see where tech is going.
    Davewrite
    • I agree with you

      @Davewrite <br>I too predicted the fall of Motorola and HP (in the mobile market) because this is what happens to every company that tries to compete against Apple. Apple is too strong, too vicious, has been able to force suppliers to sell it components at too low a price for anyone else to compete. No one can build an iPad quality tablet for $500 and still make a profit because Apple has completely sewn up the supply chain. So RIM is next in a long line of companies that have gone or are going to go bankrupt when they've gone up against the 8000lb gorilla that is Apple.<br><br>"look at $$ and see where tech is going"<br><br>Very true and also very sad because we are quickly working our way from a market where there is no real choice (the iPad is the only tablet that makes sense) to a market where there isn't even a bad choice (the iPad is the only tablet being sold at all). The exact same thing is happening in the smartphone market.<br><br>A market with only 1 manufacturer in it is not a healthy competitive market. It does not give consumers a good, healthy choice of competing products. It is a sick market. We all lose.
      toddybottom
      • RE: RIM's Q4 outlook: BlackBerry shipment projections tank

        @toddybottom
        I agree. In both the tablet and phone market, it's hard to find anything except. You go to the largest online retailer; what do you see? The iPad. Who has 90% of smartphone sales? The iphone.

        It's a sick market. We all lose.

        Wait ... you're talking about iPad/iPhone and not Windows.
        anono
    • Why is that so important, Davewrite?

      @Davewrite
      If both companies made a profit, what is wrong with that?

      Your posts seem to dictate that a company is only successful if they make a profit over a particular number.

      Apple profits are derived from the sales of cell phones, laptops, desktops, TV products (actually, not so much there) MP3 players, tablets, and Music services, while RIM only sells cell phones and tablets.

      So why are those profits imporatnt to you?
      :|
      Tim Cook
      • RE: RIM's Q4 outlook: BlackBerry shipment projections tank

        @Mister Spock <br><br>who said anything about 'wrong' making profits? go read my post<br>I'm just saying if you don't have the profits you can't compete and the other guy will eat you.<br><br>I'm also saying tech writers often (always?) get it wrong because they usually don't consider $$$. Saying a company has cool tech like QNX without factoring profits and whether it's sustainable means that predictions on where tech is going (example "QNX in tablets and phones will dominate and be apple killers " articles sprouting all over last year) will be WRONG.<br><br>saying Android is killing Apple (how many thousand blogs have stated that) while not looking at Google making less than a billion a year in Android and Apple making 50 billion plus off mobile will also prove wrong. <br><br>Without looking at the $$$ tech writers were wrong about Palm Pre ("it's a 4 star buy! A hit!), the netbook etc. <br><br>thats why profits are so important to me , you need to know it to understand tech. Predictions about where tech is going (an important part of tech journalism) will always miss the mark if they don't consider money.
        Davewrite
  • RE: RIM's Q4 outlook: BlackBerry shipment projections tank

    BB10 phones won't be released until end of 2012, and that's if they don't delay it again.

    Say goodnight RIM, you're finished. A complete laughing stock.
    ScottsdaleHokie
    • RIM is toast but who is next?

      @ScottsdaleHokie
      Android will be next. Then WP7. Soon there will only be iOS. And no one will be laughing.
      toddybottom
      • RE: RIM's Q4 outlook: BlackBerry shipment projections tank

        @toddybottom
        Yup. iOS already has 90%+ of market share and no one is laughing.

        Wait ... you're talking about iOS and not Windows.
        anono
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