By Marcus Leach
Research in Motion (RIM), makers of Blackberry phone devices, have reported a near fifty per cent drop in second quarter profits.
Numbers were down after a decrease in demand for its older models, having released their new smartphones, but only late in the quarter.
Net profit fell to $329m (£208m) for the three months to 27 August, from $797m in the same period a year earlier.
Key Points:
- Revenue in the second quarter was $4.2 billion and service revenue surpassed $1 billion for the first time.
- GAAP net income of $329 million or $0.63 per fully diluted share; adjusted net income of $419 million or $0.80 per fully diluted share.
- The BlackBerry subscriber base grew 40% year over year to surpass 70 million.
- RIM’s largest roll-out of BlackBerry smartphones was initiated with 7 new smartphones launched with over 90 carrier and distribution partners in 30 countries during the latter part of Q2.
- Approximately $780 million was invested as part of a consortium of companies that successfully bid to acquire intellectual property assets from Nortel.
-BlackBerry smartphone shipments in Q3 are estimated to grow between 27-37% over Q2 shipments.
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