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Showing posts with label RIM. Show all posts
Showing posts with label RIM. Show all posts
Tuesday, November 25, 2008
Thursday, September 25, 2008
Research In Motion's Profit, Forecast Miss Estimates (Update3)
Sept. 25 (Bloomberg) -- Research In Motion Ltd. forecast third-quarter profit that missed analysts' estimates after boosting marketing to ward off Apple Inc.'s new iPhone and introduce handsets. The shares fell 21 percent in late trading.
Profit will be 89 cents to 97 cents a share on sales of as much as $3.1 billion, Research In Motion said today in a statement. Analysts predicted 99 cents in profit on average and revenue of $2.96 billion, according to a Bloomberg survey.
Research In Motion's earnings forecast missed projections for the second straight quarter as it readied four new phones. The cost of promoting new models contributed to $379.6 million in sales and marketing costs last quarter, almost double the year- earlier amount. The company also had to delay the U.S. release of its Bold product, which will challenge the iPhone 3G.
``The cost of selling and launching all these platforms is much higher than what people thought,'' Pablo Perez-Fernandez, an analyst with Global Crown Capital in San Francisco, said in an interview. He recommends buying the shares, which he doesn't own.
Second-quarter net income rose 72 percent to $495.5 million, or 86 cents a share, from $287.7 million, or 50 cents, a year earlier, the company said. Analysts predicted a profit of 87 cents on average for the period, which ended Aug. 30. Revenue climbed 88 percent to $2.58 billion, compared with a projection of $2.59 billion from analysts.
Shares Plunge
Research In Motion, based in Waterloo, Ontario, fell $20.06 to $77.47 in extended trading after closing at $97.53 on the Nasdaq Stock Market. The shares have dropped 14 percent this year.
The company is working on a touch-screen phone and an update to its Curve consumer model, in addition to the Bold and a flip- phone version of its Pearl, according to Mike Abramsky, an analyst at RBC Capital Markets in Toronto.
Some of the new phones aren't as profitable as older models, co-Chief Executive Officer Jim Balsillie said on a conference call today. The Bold, for example, has a brighter screen, making it more expensive to produce.
``It's difficult to pass on all these costs to customers,'' Balsillie said.
That will push down gross margin, the percentage of sales remaining after deducting production costs, to 47 percent in the current quarter from 50.7 percent, Vice President Edel Ebbs said on the call. That measure may drop further in the fourth quarter, she said.
Rising Costs
Sales expenses in the current quarter may climb between 10 percent and 11 percent from the previous period, Ebbs said.
Research In Motion added 2.6 million users last quarter, compared with a 2.64 million estimate from Perez-Fernandez. The company expects to add 2.9 million users this quarter, missing Perez-Fernandez's projection of 3.09 million. Research In Motion currently has about 19 million BlackBerry users.
The company, which once focused mainly on corporate users, is offering cheaper phones as it competes for consumers with Apple's $199 iPhone. About 40 percent of Research In Motion's customers are now consumers, while the rest are business customers. The U.S. accounts for more than half of the company's annual revenue.
In the past quarter, Verizon Wireless reduced the price tag on the BlackBerry Pearl to $79 from $99.
Apple, meanwhile, is going after corporate users with features such as access to office e-mail. Based in Cupertino, California, Apple introduced the iPhone 3G in July, selling a million units in the product's first three days. The original iPhone, which ran on a slower network, debuted in June 2007.
Wireless carriers are promoting so-called smart phones, devices with e-mail and Web-browsing features, as revenue from traditional land-line service declines. Research In Motion increased its share of the U.S. smart-phone market to 53.6 percent in the second quarter from 44.5 percent in the first, according to Framingham, Massachusetts-based research firm IDC.
To contact the reporter on this story: Vivek Shankar in San Francisco at vshankar3@bloomberg.net
Profit will be 89 cents to 97 cents a share on sales of as much as $3.1 billion, Research In Motion said today in a statement. Analysts predicted 99 cents in profit on average and revenue of $2.96 billion, according to a Bloomberg survey.
Research In Motion's earnings forecast missed projections for the second straight quarter as it readied four new phones. The cost of promoting new models contributed to $379.6 million in sales and marketing costs last quarter, almost double the year- earlier amount. The company also had to delay the U.S. release of its Bold product, which will challenge the iPhone 3G.
``The cost of selling and launching all these platforms is much higher than what people thought,'' Pablo Perez-Fernandez, an analyst with Global Crown Capital in San Francisco, said in an interview. He recommends buying the shares, which he doesn't own.
Second-quarter net income rose 72 percent to $495.5 million, or 86 cents a share, from $287.7 million, or 50 cents, a year earlier, the company said. Analysts predicted a profit of 87 cents on average for the period, which ended Aug. 30. Revenue climbed 88 percent to $2.58 billion, compared with a projection of $2.59 billion from analysts.
Shares Plunge
Research In Motion, based in Waterloo, Ontario, fell $20.06 to $77.47 in extended trading after closing at $97.53 on the Nasdaq Stock Market. The shares have dropped 14 percent this year.
The company is working on a touch-screen phone and an update to its Curve consumer model, in addition to the Bold and a flip- phone version of its Pearl, according to Mike Abramsky, an analyst at RBC Capital Markets in Toronto.
Some of the new phones aren't as profitable as older models, co-Chief Executive Officer Jim Balsillie said on a conference call today. The Bold, for example, has a brighter screen, making it more expensive to produce.
``It's difficult to pass on all these costs to customers,'' Balsillie said.
That will push down gross margin, the percentage of sales remaining after deducting production costs, to 47 percent in the current quarter from 50.7 percent, Vice President Edel Ebbs said on the call. That measure may drop further in the fourth quarter, she said.
Rising Costs
Sales expenses in the current quarter may climb between 10 percent and 11 percent from the previous period, Ebbs said.
Research In Motion added 2.6 million users last quarter, compared with a 2.64 million estimate from Perez-Fernandez. The company expects to add 2.9 million users this quarter, missing Perez-Fernandez's projection of 3.09 million. Research In Motion currently has about 19 million BlackBerry users.
The company, which once focused mainly on corporate users, is offering cheaper phones as it competes for consumers with Apple's $199 iPhone. About 40 percent of Research In Motion's customers are now consumers, while the rest are business customers. The U.S. accounts for more than half of the company's annual revenue.
In the past quarter, Verizon Wireless reduced the price tag on the BlackBerry Pearl to $79 from $99.
Apple, meanwhile, is going after corporate users with features such as access to office e-mail. Based in Cupertino, California, Apple introduced the iPhone 3G in July, selling a million units in the product's first three days. The original iPhone, which ran on a slower network, debuted in June 2007.
Wireless carriers are promoting so-called smart phones, devices with e-mail and Web-browsing features, as revenue from traditional land-line service declines. Research In Motion increased its share of the U.S. smart-phone market to 53.6 percent in the second quarter from 44.5 percent in the first, according to Framingham, Massachusetts-based research firm IDC.
To contact the reporter on this story: Vivek Shankar in San Francisco at vshankar3@bloomberg.net
Tuesday, January 15, 2008
China Mobile calls off iPhone deal
15 Jan 2008
Apple’s global sales target of selling ten million iPhone handsets by the end of 2008 was shattered as talks with the number one carrier, in the world's largest wireless market, has come to a halt.
Of China’s 522 million mobile phone subscribers, state-controlled China Mobile has 363 million subscribers and therefore a stronger upper hand in negotiating deals than other operators. "We can only say that negotiations have ended for now. We have no other news to report," said Li Honghui, a spokeswoman for China Mobile Communications Corporation."We have held talks with Apple to launch the iPhone device in China. However, those talks have ended," said Rainie Lei, a spokeswoman for China Mobile. Speculations point to disagreements over revenue-sharing terms in the preliminary discussions between the two companies.China Mobile, the world’s largest mobile phone operator based on the number of subscribers, was reportedly unwilling to accept Apple's request for a 20 per cent to 30 per cent share of China Mobile's user fees from future iPhone users.The Cupertino, California-based company, which released the hyped handset in the US, Germany, the UK, and France in 2007, has said it plans to launch the iPhone in Asia in June of this year. Apple, which so far has only released the device on the country's largest networks, has already begun talks with China Unicom to offer the iPhone exclusively in mainland China. Analysts believe smaller rival China Unicom is more willing to give Apple a larger piece of the revenue pie than China Mobile.
Wednesday, October 31, 2007
TCL to re-launch Alcatel-branded handsets in China
31 Oct, 2007
China-based TCL Communication Technology Holdings plans to re-launch Alcatel-branded handsets in the China market before the end of this year, according to a company press release.
With Alcatel-Lucent recently signing a cooperation agreement with RIM (Research in Motion), the upcoming Alcatel-branded handsets will include a Blackberry-enabled model, according to sources close to the company.
There also will be a luxury model, the N3, which is jointly developed by Alcatel and Elle, the sources added.
TCL also reported that its handset shipments jumped 30% on year, to reach 3.6 million units in the third quarter of this year, including 1.2 million units shipped to the EMEA (Europe, the Middle East and Africa) markets.
The company expects its handset shipments to grow 44% sequentially in the fourth quarter, with total shipments for all of 2007 to top 12-13 million units, the company said in the press release.
Total handset shipments are expected to hit 15-18 million units in 2008 and further expand to 25 million units in 2009, company CEO Liu Fei was quoted as indicating in the press release.
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