RIM Posts Abysmal Quarterly Earnings: Is PlayBook Doomed?

Research in Motion had given plenty of warnings before declaring its quarterly results. However, abortion the actual numbers still caught quite a few experts off-guard. The numbers clearly showed that the company is steadily plunging downwards and there does not seem to be much hope of it recovering. The company solidly failed to meet its own forecast. It missed it revenue forecast as well as shipping forecast.

RIM was expecting to sell 11 to 12.5 million units in the quarter. Though, in reality, it managed to ship only 10.6 million units. However, the biggest blow came in the form of PlayBook numbers. The tablet performed spectacularly bad. The analysts were expecting RIM to ship 700,000 tablets during the first full quarter of its availability. However, only 200,000 units of the tablet were shipped. Well, we are not even going to attempt comparing these numbers with iPad’s sales performance on its debut.

Tablet market is getting flooded, but at the very same time, manufacturers are also getting to face the reality. We saw HP pulling out of the segment, and then Sharp also announced abandoning its ultra expensive tablet. So, would the latest number push the RIM authorities to take the same route? The numbers are especially worrying, since the company had managed to ship 500,000 units of PlayBook in the previous quarter. More than 50 percent of drop in demand during the early stage of a product is never a good sign.

RIM relied upon its trusted corporate market to lap up its tablet offer. But, the latest numbers show that the things are not happening that way.

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