RIM's Revenue Drops For The First Time In Nine Years, Stock Prices Tumble

BlackBerry and PlayBook maker Research in Motion (RIM) suffered a major setback yesterday when the company’s shares dropped over 15 percent during after-hours trading.

That drop took place after RIM announced on Thursday that its quarterly revenue may decline for the first time in nine years, and also that it is going take tough measures in order to cut costs, which may also involve job reductions.

RIM revealed that its revenues for the fiscal second quarter will be between $4.2 billion and $4.8 billion, whereas the profit for this quarter is likely to be between 75 cents and $1.05 per share, far less than what analysts had estimated earlier at $1.40.

Apparently, the company shipped nearly 13.2 million smartphones, and another 500,000 units of their PlayBook tablets during the quarter.

Once a star in the smartphone industry, RIM has been hammered by the rise of Apple’s iPhone and the various smartphones that run on Google’s Android mobile OS.

Although BlackBerrys still have a good reputation, the lack of independent development of third party apps, and improvement on the part of RIM's competitors, has dropped BlackBerrys from the gold standard of smartphones to just one more option.