RIM attracted some trading from speculators after reporting a lower loss than expected in its fiscal second-quarter earnings season. Revenues of $2.9 billion easily beat the estimate of $2.5 billion in spite of a year-over-year 31% decline.
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New York, NY (PRWEB) October 11, 2012
According to George Leong, financial expert and contributor to Profit Confidential, troubled “BlackBerry” maker Research In Motion (RIM) faces extremely difficult roadblocks ahead, namely from Apple, Google, and Samsung, despite beating earnings expectations and adding seven million new subscribers.
“RIM attracted some trading from speculators after reporting a lower loss than expected in its fiscal second-quarter earnings season,” reports Leong. “Revenues of $2.9 billion easily beat the estimate of $2.5 billion in spite of a year-over-year 31% decline.”
According to Leong’s stock analysis, the growth was largely generated from demand in the emerging markets.
In the article “Don’t Get Fooled by Research In Motion,” Leong notes that RIM sold 7.4 million BlackBerry smartphones, which was higher than the estimate calling for just seven million, helping the company increase its cash balance by $100 million, making the total $2.3 billion.
However, despite all the positive gains, Leong points out that RIM has still lost a large chunk of its market share to innovative technology giants like Apple and Google. He states that RIM’s new “BB10” operating system could be the final opportunity for the company to try to regain market share.
“RIM remains a work in progress,” concludes Leong, who is not convinced the market will ever see the final product.
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