Canadian smartphone maker Research in Motion’s share price took a hit after the company announced that its net profit for the second quarter has fallen by more than half.
For the second quarter of 2011, the company reported a net profit of $497 million, less than half of the $797 million it had made in last year’s second quarter.
The company, which is behind the Blackberry range of smartphones, reported that it had shipped 10.2 million BB smartphones in the second quarter, which was below the 12 million units estimated by investors. RIM also sold 200,000 units of the PlayBook tablet PC device.
“We successfully launched a range of BlackBerry 7 smartphones around the world during the latter part of the second quarter and we are seeing strong sell-through and customer interest for these new products", said RIM co-CEO Jim Balsillie.
“Overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand for older models,” he added.
RIM has been losing out on smartphone market share as people continue to flock around Apple’s iPhone and Google’s Android powered smartphones. The company needs to bring in its QNX operating system as quickly as possible and try to build its market around that.