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RIM Q3 earnings sees profits fall again

Lingering BlackBerry PlayBook inventory dragged down RIM's profits

Yet more black clouds hover over Waterloo this evening after RIM's third quarter earnings call revealed another drop in profits and revenue.

The BlackBerry maker brought in $5.2 billion (£3.35bn)in the last three months, which was up from a disastrous Q2, but down on 2010's figure of $5.5 billion (£3.55bn).

The sale of 14.1 million BlackBerry handsets helped RIM bring in $256 million (£1.65m) in net income, which represents 51 cents per share.

PlayBook millstone

That figure would have been higher but for the lingering PlayBook inventory as the company only sold 150,000 in the last quarter despite launching a host of incentives.

The company also suffered badly as a widespread internet services outage in October hit BlackBerry users across the world.

Naturally Wall Street responded to the deluge of bad news from RIM with shares dropping 6 per cent in after hours training.

The outlook doesn't appear to be getting any brighter for the Canadian giant, with the company forecasting income of $4.6-$4.9 billion with only 11-12 million phone sales expected over Christmas.

Via: TechCrunch