RIM makes unexpected profit
Rising sales of BlackBerry Z10 smartphones give firm a welcome boost as turnover drops year on year
RIM saw fourth-quarter turnover fall 36 per cent compared with the previous year but profit was up as sales of its new smartphone and operating system begin to take off.
The firm, which has lost ground to rivals – particularly Apple and Samsung – in the smartphone space over recent years, saw Q4 revenue hit $2.7bn (£1.8bn) compared with $4.2bn in the same quarter of 2012.
Profit was $94m for the quarter, compared with a $125m loss a year earlier and the firm revealed it has a subscriber base of approximately 76 million.
But the vendor has high hopes for its BlackBerry 10 platform and Z10 handsets (pictured) launched earlier this year.
Thorsten Heins, president and chief executive of BlackBerry, said: “We have implemented numerous changes at BlackBerry over the past year and those changes have resulted in the company returning to profitability in Q4.
“With the launch of BlackBerry 10, we have introduced the newest and what we believe to be the most innovative mobile computing platform in the market today. Customers love the device and the user experience and our teams and partners are now focused on getting those devices into the hands of BlackBerry consumer and enterprise customers.
“As we go into our new fiscal year, we are excited with the opportunities for the BlackBerry 10 platform and the commitments we are seeing from our global developers and partners," he added. "We are also excited about the new, dynamic culture at BlackBerry, where we are laser-focused on continuing to drive efficiency and improve the company’s profitability while driving innovation. We have built an engine that is able to drive improved financial performance at lower volumes, which should allow us to generate additional benefits from higher volumes in the future.
In separate news, co-founder of RIM Mike Lazaridis is set to retire as vice chairman of the Board and as a director of the company. His last day will be 1 May.
In a statement he said: “With the launch of BlackBerry 10, I believe I have fulfilled my commitment to the Board. Thorsten and his team did an excellent job in completing BlackBerry 10. We have a great deal of which to be proud. I believe I am leaving the company in good hands. I remain a huge fan of BlackBerry and, of course, wish the company and its people well.”
Praising his predecessor, Heins added: “I admire Mike for his many achievements and for his vision in helping bring BlackBerry 10 to fruition. On a personal level, I am grateful to Mike for his help, guidance and advice during my first 15 months as chief executive of BlackBerry. I wish him all the best.”