Reaearch in Motion (RIMM) just reported and it’s results have pushed the stock up 13%.
1.2 million new people activated a blackberry last quarter and RIMM shipped 2.4 million units. Earnings that had been estimated at the high end, $1.06 a share actually came in at $1.17 a share, a 74% jump over last year. The company also announced a 3 for 1 stock split effective August 20.
Revenue were estimated at $1.06 billion and came in at $1.082 billion vs $613 million last year. It look like initial result do not that many people holding off a new phone purchase for Apple’s (AAPL) iPhone.
“We are starting fiscal 2008 with strong operating performance, including record revenue, earnings and subscriber results,” said Jim Balsillie, Co-CEO at RIM. “After completing our first billion dollar quarter, we are now preparing to ship the 20 millionth BlackBerry handset this summer. This growth is a testament to our strong portfolio of products and services and our successful channel expansion. We look forward to the remainder of the year in which we anticipate continued growth within both North American and international markets.”
A good product, priced reasonably and available on all carriers. A novel little idea.
3 replies on “RIMM Blows The Doors Off”
It’s great that RIMM has done well and that the investor is going to be compensated/ rewarded. Do you have any of the data on RIMM’s earnings from the 1st quarter when they launched their 1st generation Blackberry?
You used the following data:
1. 1.2 million new people activated last quarter.
2. RIMM shipped 2.4 million units as well.
3. You said there was a 74% jump over last year.
4. The company also announced a 3 for 1 stock split effective August 20.
5. Revenue were estimated at $1.06 billion and came in at $1.082 billion vs $613 million last year.
Again, good for RIMM, they earned it.
On the otherhand, I, like a lot of people, have watched you bash Apple over the past several months. With Apple’s launch of the iPhone later today, an earnings report around the proverbial corner, Apple TV, and the off chance that there are a series of new strategic alliances and product improvements, as well as possible new product debuts around the corner as well, am curious to know if you would like your humble pie (Apple of course) served with ice cream or a dash of sarcasm?
Remember, if you dress someone down, you need to be prepared to dress them up. I say this because if Jobs and Apple have under promised and over performed and the iphone blows the RIMM data you’ve posted away, everyone’s going to let you know and remind you of all the stones you’ve thrown.
Again, good for RIMM. Afterall, it’s really about service to the consumer.
ET,
i have said i think almost a thousand time now that my problem with the iPhone is it’s price. my initla post said “reduce the price to $299 and you will have something”
if that does happen, i expect it to sell a ton, if it’s remains priced where it is, it will only be a nice little niche product that does not justify the run up in shares of apple…
can you “phone home” with it?
sorry could not resist
I don’t agree with you. Then again, that’s why there’s chocolate and that’s why there’s vanilla. The iPhone does justify a run up in the price of Apple’s stock because it’s based upon an overwhelming response by consumer. I think that it’s certainly not high enough because of all of their other products and services. The media made the frenzy – that’s what they do – but remember, it’s based upon consumer demand and the absence of a simialr offering in the marketplace. This is interesting (especially in assessing and understanding consumer behaviors) because the public is being introduced to a new example of form and function – what we’re seeing in the marketplace is an evolution or adaptation of sorts. Apple simply identified the opportunity/ need and brought it (forward) to the marketplace ahead of all of the other companies. A “nice little niche product” would be the understatement of the year. I do believe that you have the tendency to mix Apple (s) with uh, well, mediocrity. Do you remember the price of Motorola’s StarTac when it first came out? ($2499) Do you remember their Q when it came out just a few years ago? ($599) Do you remember what the Blackberry cost when it first came out? ($629) Do you remember all of the plans and activation fees? C’mon, get real, it’s a fact that almost all 1st generation products have a higher initial cost related to their offering but Apple really has substance to theis offering. This is going to be agreat case study for business schools. BTW – yes, ican phone home. Here’s something that you’ll be seeing a lot of in the future – “ican”.