What's your source for this information, since they haven't released it yet?
RIM released it ten minutes ago.
EPS was $0.80 versus expectations of $0.88
Revenue was $4.2 billion versus estimates of $4.5 billion
It shipped 10.6 million BlackBerrys versus expectations of 11.9 million
RIM shipped 200,000 PlayBooks versus expectations of 562,000
Cash on hand declined to $1.4 billion from $2.9 billion in the quarter before ($780 million on the Nortel patents, $285 million in capital expenditures, etc).
Scariest news is that RIM burned through half of their stash of cash ($2.9 billion) during one quarter. There's a strong possibility of running out of it within the next couple of quarters. Imagine if they had manufactured more playbooks. They would barely have any cash left.
Scariest news is that RIM burned through half of their stash of cash ($2.9 billion) during one quarter. There's a strong possibility of running out of it within the next couple of quarters. Imagine if they had manufactured more playbooks. They would barely have any cash left.
Remember that a significant portion of the cash drop was the Nortel patent purchase; they won't be making any similar purchases in the future.
Does this mean the Playbook is a failure and should be dropped? This plus the Exec departures very not good!
Yes, it does mean the Playbook has failed - really this should not come as a surprise to anyone. As to your question concerning should it be dropped - that is a little less unclear.
There is still time for RIM to turn it around regarding the Playbook - updating features, providing features that consumers actually want, being more visible in terms of marketing and communicating with the tech community, developers, and consumers.
The Playbook does not have to be the #1 tablet - and in all honesty, it never would have - all it needs to do is be successful for RIM.
The question is whether or not RIM has the resources and wherewithal to truly support the device and carry it through. There is nothing wrong with providing a solid niche product. But will RIM see it that way is anyone's guess.
Scariest news is that RIM burned through half of their stash of cash ($2.9 billion) during one quarter. There's a strong possibility of running out of it within the next couple of quarters. Imagine if they had manufactured more playbooks. They would barely have any cash left.
Do you honestly think they did or would spend a large portion of their cash reserves on day-to-day manufacturing costs for a single product in a quarter...
When you cannot even build a tablet with native email...what do you expect? Add to that weak app offerings and it's no wonder that it has done so poorly.
We all love our PlayBooks and know it's a great device, but to someone who doesn't own a BB phone, this tablet makes no sense. Consider the shrinking volume of BB phone users in this country as well...
In FIVE MONTHS we have had nothing but minor revisions and updates, and aside from video chat, not really ANYTHING that we were originally promised or asked for.
So...IMO, these numbers are exactly what they should be.
Remember that a significant portion of the cash drop was the Nortel patent purchase; they won't be making any similar purchases in the future.
They burned through 1.4 billion, half of which was for the patents. Considering other companies are adding to their cash piles, dropping 700 million in a quarter is cause for alarm.
Do you honestly think they did or would spend a large portion of their cash reserves on day-to-day manufacturing costs for a single product in a quarter...
No company on solid ground decreases their pile of cash. Especially not by half in 3 months.
They burned through 1.4 billion, half of which was for the patents. Considering other companies are adding to their cash piles, dropping 700 million in a quarter is cause for alarm.
I'm not claiming it isn't, just that cash expenditures during the quarter were not typical for the company.
Posted from my CrackBerry at wapforums.crackberry.com
its amazing that im listening to the webcast and posting this from a device thats about to get nixed.
Posted from my CrackBerry at wapforums.crackberry.com
Why the heck is Jim going on about in store displays and accessories and crap like they will save his company. This dude is a joke. He needs to visit a Best Buy and see how those in-store displays are.
