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Friday, March 30, 2012

RIM reports quarterly loss and plans 'refocus' on enterprise business

BlackBerryResearch In Motion, the company behind BlackBerry mobile devices, has reported its fourth quarter results for the financial year that ended on 3rd March 2012. During the quarter, it shipped approximately 11.1 million BlackBerry smartphones and over 500,000 BlackBerry PlayBook tablets.

Revenue was down 25% year-on-year to $4.2 billion (and was also down 19% from the previous quarter). Around 68% of this came from hardware, 27% from services and 5% for software and other revenue. Overall, the company made a net loss of $125 million - having made a quarterly profit of $934 million a year ago.

RIM now plans to focus more on enterprise sales, although it’s not turning its back on providing BlackBerry services to consumers. It also announced the departure of director and former co-CEO Jim Balsillie and the retirement of Chief Technology Officer David Yach.

Thorsten Heins, President & CEO of Research In Motion, said “I have assessed many aspects of RIM’s business during my first 10 weeks as CEO. I have confirmed that the Company has substantial strengths that can be further leveraged to improve our financial performance, including RIM’s global network infrastructure, a strong enterprise offering and a large and growing base of more than 77 million subscribers. I’m very excited about the prospects for the BlackBerry 10 platform, which is on track for the latter part of calendar 2012. Notwithstanding these strengths and opportunities, the business challenges we face over the next several quarters are significant and I am taking the necessary steps to address them. In addition to delivering the BlackBerry 10 platform and refocusing resources on RIM’s key opportunities, such as BlackBerry Mobile Fusion and new integrated service offerings, we will also drive greater operational performance through a variety of initiatives including increased management accountability and process discipline. In parallel, we are undertaking a comprehensive review of strategic opportunities including partnerships and joint ventures, licensing, and other ways to leverage RIM’s assets and maximize value for our stakeholders.”

[Financial results (pdf)]

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Opinion Articles

Everything Everywhere, Orange and T-Mobile: how much longer for three brands?

Mark Bridge writes:

This story starts with Mercury One2One and Orange. They were acquired by Deutsche Telekom (which changed One2One’s name to T-Mobile) and France Telecom. Next, Everything Everywhere was created to run the T-Mobile and Orange brands in the UK.

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Multiplayer Computer Games are Big Business for Small Devices

Greg Flakus of voanews.com writes:

Millions of people are addicted to playing games on mobile devices, with rivals and teammates spread around the world. A company in Austin, Texas has developed such a game, known as a mobile multiplayer online game, for the Apple iPhone and iPad, basing it on a pen-and-paper game that was popular in the 1970s called Traveller.

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Last week at The Fonecast: 30th April 2012

Mark Bridge writes:

Last week mobile phones and health were back in the headlines together, rather like love & marriage or salt and vinegar. The news is pretty much as we’ve heard before; this time it’s the UK Health Protection Agency’s independent Advisory Group on Non-Ionising Radiation telling us there’s no convincing evidence that mobile phone technologies cause adverse effects on human health – but longer-term research is still needed.

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Big headlines for Three UK... but no big changes

Mark Bridge writes:

The headlines sound pretty dramatic. “Three exits business market”. “Three parts company with Phones 4u”. It sounds like the 3G network operator is cutting back and reorganising. But let's look a little closer.

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Last week at The Fonecast: 23rd April 2012

Mark Bridge writes:

We’ve had a few sets of quarterly results in the past week. Let me summarise as best I can.

Qualcomm: doing very well, thank you.
Microsoft: pretty decent, although no-one’s talking much about phones.
Intel: not as good as before, although better than expected.
Nokia: sorry, we’ve lost a billion Euro. Well, we did warn you...

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