RIM 3Q profit up 59 pct on record BlackBerry sales
RIM being a thriving and profitable company is hardly a new story — as confirmed by third quarter earnings of $628 million off the back of a record-breaking 10 million units sold — but the way it’s making its money seems to be changing. More than 80 percent of new BlackBerry subscribers in the quarter were private customers, marking a distinct shift — maybe not away from the corporate arena, but definitely toward embracing the consumer market. In an effort to further consolidate its global empire, RIM has also announced a partnership with China Telecom to go along with its earlier China Mobile deal. Oh, and there’s the small matter of the 75 millionth BlackBerry being sold, but we’re sure the cool cats up in BB HQ aren’t counting handsets, they’re probably too busy rolling around in piles of money.
TORONTO — BlackBerry maker Research In Motion Ltd. surprised Wall Street on Thursday as it reported a 59 percent increase in third-quarter income, boosted by new subscribers and record sales of its smart phones.
More than 80 percent of the Canadian company’s new subscribers were non-corporate customers, a sign of the BlackBerry’s popularity among consumers amid intense competition from devices such as Apple Inc.’s iPhone, Palm Inc.’s Pre and Motorola Inc.’s Droid.
Shares surged more than 12 percent in after-hours trading.
After initially focusing on corporate customers, RIM has expanded its reach into the consumer market in recent years with such touch-screen models as the BlackBerry Storm. Two years ago, half of RIM’s new subscribers were business customers. In the third quarter, they made up less than a fifth.
Source: AP
