19:42 ET<\/span>
\n<\/span><\/p>\nShares in Research in Motion (RIM) fell 12% in after-hours trading after the firm said profits this quarter will be much weaker than expected.<\/p>\n
It blamed the cost of developing its new tablet-format Blackberry, as well as a migration of consumers towards cheaper handsets in its product range.<\/p>\n
The share price fall came despite the Canadian firm reporting $934m (\u00a3579m) net profits for the last quarter, in line with expectations.<\/p>\n
Profits were up 31% on a year earlier.<\/p>\n
‘Investments in the future’<\/span><\/p>\nRevenues of $5.6bn – up 36% – were slightly short of expectations, according to the results released after the close of trading on the Nasdaq exchange.<\/p>\n
The company has seen its share of its core US market steadily eroded by smartphone rivals.<\/p>\n
Some 48% of its business now comes from outside the key markets of the US, Canada and the UK.<\/p>\n
But growth in these new markets has gone hand-in-hand with a shift towards lower-margin entry-point products, the firm conceded.<\/p>\n
RIM is banking on its new tablet computer – the Playbook – to regain the initiative.<\/p>\n
It will be half the size of Apple’s iPad and will be compatible with Google’s Android operating system.<\/p>\n
“These are investments in the future,” said co-chief executive Jim Balsillie, explaining the unexpected increase in money spent on research, development, sales and market.<\/p>\n
“I have many corporate clients that have approached us about, you know, each wanting tens of thousands, several tens of thousands of Playbooks.”<\/p>\n
As well as the new product launch, the company is also revamping its operating system.<\/p>\n
The firm lowered its profit guidance for the current quarter, and also broadened its range due to uncertainty over the possible impact of Japanese supply chain problems.<\/p>\n<\/p><\/div>\n<\/p>\n
Read more:
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