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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

4G doesn't come to Three

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Earlier today, Three.co.uk published a blog post headlined “4G comes to Three”. But it hasn’t.

I spent most of this morning here at Mobile World Congress muttering about the blog before returning to it this afternoon. And suddenly it’s changed.

The blog post remains. The headline is completely different. Now we’re told “Three to launch leading edge 3G service”.

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How far does it go, mate?

Geoff Varrall of RTT writes:

About 15,000 years ago some indigenous Northern Australians decided that they needed a more efficient way of talking to each other than just shouting a lot.

And blowing into a long cylindrical tube proved to be just what was needed and seriously useful fun – the dawn of the didgeridoo.

Trumpets and bagpipes were invented at about the same time. The ancient Greeks used the trumpet in battlefield communication to devastating effect.

The way you can tell that your didgeridoo is better than everyone else’s didgeridoo is to blow into it and see how far the sound goes.

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Last week at The Fonecast: 20th February 2012

Mark Bridge writes:

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Last week at The Fonecast: 13th February 2012

Mark Bridge writes:

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Could a new legal framework for FRAND principles end the mobile patent wars in 2013?

Mark Bridge writes:

I’m not the first person to point out that mobile phone patent battles are raging all around us. They’ve been going on for years.

However, the topic of FRAND patents - those designated as ‘industry standards’ and therefore required to be licensed on Fair, Reasonable And Non-Discriminatory terms - has become an increasingly newsworthy topic.

In the last couple of weeks we’ve reported on an EC investigation into Samsung’s licensing of mobile patents and a Motorola/Apple legal battle that involves FRAND licensing.

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