RIM slashes forecast on weak BlackBerry sales

By Laurie Segall, staff reporterApril 28, 2011: 5:36 PM ET

NEW YORK (CNNMoney) — Reseach in Motion on Thursday slashed its earnings forecast for the current quarter, citing sluggish BlackBerry sales.

The company now expects that its per-share earnings will be in the range of $1.30 to $1.37 — lower than the $1.47 to $1.55 range it forecast last month. It also reduced its revenue guidance, saying it now thinks it will come in “slightly below” the $5.2 billion it previously offered as a low-end estimate.

RIM said earlier that it expects to sell 13.5 million to 14.5 million BlackBerry smartphones in its ongoing quarter, which will end May 31. It now expects to be at the lower end of that range, and it warned that customers who are buying BlackBerrys are opting for the cheaper models.

That’s an ominious sign for a device maker that’s fighting hard to stay on top in a market it once dominated. RIM’s new tablet, the PlayBook, debuted earlier this month to lukewarm reviews.

RIM said Thursday that it expects PlayBook sales this quarter to live up to its earlier expectations. It added that Japan’s earthquake has not caused any significant supply disruptions.

Shares of RIM were briefly halted after hours. When trading resumed, RIMM (RIMM) shares dropped 9%.  

First Published: April 28, 2011: 5:10 PM ET