... Unless You're In Handhelds - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


... Unless You're In Handhelds

Research In Motion Ltd. reported last week that sales were up 68% in its first quarter, but rising competition and an ongoing legal dispute still loom on the horizon for the BlackBerry device maker.

RIM's revenue for the quarter, ended May 28, was $453.9 million, up from $269.6 million in the same period last year. Nearly 70% of its revenue came from handheld sales, 17% from service, and 11% from software. Net income for the quarter was $132.5 million, compared with $55 million in the year-ago quarter.

The number of BlackBerry subscribers in the quarter was up 592,000, a 24% increase from the previous quarter, bringing total subscribers to 3.1 million. That didn't meet the expectations of analysts, who were looking for more than 600,000 new subscribers.

Ongoing legal challenges from patent-holding company NTP Inc. contributed to lower-than-expected subscriber growth, says Brad Akyuz, an analyst at research firm Current Analysis. RIM had agreed to pay NTP $450 million in royalties to settle the dispute, but RIM recently returned to court, saying NTP refused to carry out the agreement.

RIM also faces increased pressure from competitors in the PDA and push-E-mail markets. It holds the lead in PDAs, with 21% of the market, according to a May Gartner study. PalmOne Inc., which held the lead a year ago, remains on RIM's heels with an 18% share, Gartner says.

PalmOne last week said its Treo smart phones led the way to $336 million in revenue for its fourth quarter, ended June 3, a 26% increase from the year-ago quarter. Net income rose to $17.7 million, compared with $13.3 million a year ago. Analyst Akyuz says, "Making the Treo 650 smart phone available in U.S. has really helped PalmOne grow substantially."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
IT Careers: Top 10 US Cities for Tech Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
Predictions for Cloud Computing in 2020
James Kobielus, Research Director, Futurum,  1/9/2020
What's Next: AI and Data Trends for 2020 and Beyond
Jessica Davis, Senior Editor, Enterprise Apps,  12/30/2019
Register for InformationWeek Newsletters
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll