RIM admits BlackBerry sales have been disappointing
Is this the first sign of bigger problems? Research in Motion, the makers of BlackBerry, have said that fewer people are buying their devices and services than they anticipated. The company blames the shortfall on delays in the release of two new products. Analysts don’t buy that explanation. Instead, they blame increased competition from other companies with new wireless data offerings and uncertainty caused by court troubles in the U.S. for customer reluctance.
The company will add 8 percent fewer subscribers than forecasted in the third quarter, and predict a 3 percent drop in the fourth quarter than the original forecast, as well. These projections come after the actual second quarter forecasts fell 5 percent below forecast.
Despite the problems, the pessimism of some analysts and the unwillingness of the company to discuss earnings for the third quarter, some analysts remain bullish. They don’t see the problems as long-term or fundamental and recommend taking advantage of lower prices now to invest.
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