Economic Storm Rocking Research in Motion Ltd. (RIMM)

By: Peter Chubb | Posted: December 4, 2008 | No Comments
Filed under: Cell Phones

A few weeks back Research in Motion Ltd. (RIMM) gave us the BlackBerry Storm; it seems ironic that the company is facing a storm of their own now. Consumers are worried about the glitches that have rocked the Storm, but Wall Street does not care much for that, they are more concerned about RIM’s low earnings and revenue, as well as unit sales.

This is not good news, and shows that the economic downturn is now having an effect on the once powerful Smartphone market. All Smartphone makers are now warning that their sales figures are now being affected by current events, Palm Inc. (PALM) has already joined RIM, but it is likely that Nokia Corp. (NOK) will also offer their own warning.

Apple with their iPhone is also vulnerable, along with Samsung Electronics and LG Electronics, who was hoping to take a huge slice of the Smartphone market away from the likes of RIM, that job will be a lot tougher now. RIM has now been forced to cut their third-quarter estimate from 83 cents to 81 cents, which is from $2.78 billion to $2.75 billion.

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