RIM’s pessimistic outlook has shocked Wall Street which had been hoping that things would start picking up for the mobile outfit.
RIM reported a steep drop in quarterly profit thanks to flaccid sales of its smartphones and tablets, which was more or less expected, but failed to offer any crumb of comfort that things might get better soon.
Needless to say, shares fell faster than a team of free falling parachuting elephants who have forgotten to pack the most important thing in their act.
The company did not even go out of its way to tart up the figures. It painted such a dismal picture they made Goya look positively cheerful and Hieronymus Bosch’s hell look like a good day out.
RIM said it now expects to reach only the lower end of an already reduced full-year outlook in a quarterly financial report.
Edward Snyder, an analyst at Charter Equity Research, told Reuters that the financial report was another nail in the coffin of management.
It shows how the BlackBerry, once a byword for corporate communication, has fallen out of favour with both consumers and investors as they have been replaced by devices running Google’s Android software.
It seems that RIM had pinned its hopes on the British rioting market, which did not hold up for long. Other analysts said that the BlackBerry platform is now in decline. Its only hope is to get the QNX software powering its PlayBook tablet onto its next generation of smartphones quickly.
Investors will probably want the scalps of senior executives too.