It was a great Q1 it was for BlackBerry maker Research in Motion, however, lowered estimates for Q2 have caused RIM’s stock (RIMM) to take a plunge in after hours trading.
Research in Motion closed yesterday at $142.336 but is down $13.456, or, -9.45% down to $128.88. RIM said that it’s margins will be a bit lower at the end of Q2, 50.5% down from 50.7%
I am sure that many are going say that this dip and any woes RIM sees in Q2 are due to the release of the iPhone. Apple is going to claim some ground in the consumer market with the new iPhone and RIM is going to have to figure out how to compete with a $200 device, however, if RIM were to lose share to RIM in Q2, I am sure they will more than make up for in Q3 which starts in September.
It’s the economy and slower spending along with higher shipping and development costs. The iPhone hasn’t and didn’t affect this past quarter. Companies are watching and tightening their budgets and consumer spending has been dropping steadily, hence the bleak outlook. They’ll do well come Q4 when the full lineup is out there, the iPhone launch with 3G has passed and the holidays approach. It’s tough to toss money on the corporate level right now and even harder on some consumers to go switching to a plan and device they may not really need, at least not right now. Just my two cents. 🙂
“…RIM is going to have to figure out how to compete with a $200 device…”
Their answer better be to release their device at $200 as well.