RIM Defies Recession Fears, Posts Significant Jump In Profits

Beating Wall Street expectations and global economic meltdown, Blackberry manufacturer Research in Motion has posted a strong final quarter earnings, registering an impressive hike of 84 percent on year-on-year basis.

The revenues for the fourth quarter that ended on 28 February hit a massive $3.46 billion, showing an increase from $1.88 billion registered for the same period a year ago.

The company attributed these impressive results to sales of devices, with around 83 percent of total earnings for the quarter came from these sales, as the company had shipped as many as 7.8 million devices during the whole quarter, thereby making it around 26 million for the whole year.

Incidentally, during the same quarter the company also shipped its 50 millionth Blackberry handset. Apart from the sales of the devices, the company earned 12 percent of its revenues for the quarter from services, 2 percent from software, and the remaining 3 percent from other miscellaneous sources, such as by selling peripherals.

The company further notified that it added 3.9 million new Blackberry subscribers during the fourth quarter, bringing the overall count of the subscribers to 25 million. Cumulatively, the company has earned revenues worth $11.07 billion during the whole fiscal year, up from $6.01 billion registered for the last year.

The company has further predicted a lucrative quarter ahead, with the revenues would lie anywhere between $3.3 billion to $3.5 billion, and the number of new subscribers would anticipated in the range of 3.7 million to 3.9 million.

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Our Comments

We need a strong Research in motion to keep Apple and its iPhone in check. Expect the Canadian manufacturer to come up with more consumer oriented smartphones in the next few months while trying to ensure that its tight grip on the high end, corporate market doesn't loosen. Its newly announced application store could also turn up to be a significant revenue generator as well as a strong rival to Apple.

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