Research in Motion, the maker of BlackBerry reported a big drop of revenue on Thursday and said that it sold fewer tablets that they expected. The company’s shares fell down more than 19%.
The results show a struggle to compete with the big players like smartphones running on Google’s Android Operating System and Apple’s iPhone and increased pressure for BlackBerry’s long-promised new phone to be the next hit.
The company stated Thursday that the net income was 419 million after three months. That’s a big fall down from 796.7 million a year ago. According to the survey from FactSet, Analysts expected 90 cents per share.
Although BlackBerry phones have been dominating the market in terms of corporate smartphones, their popularity is getting low. Consumers from the U.S. are now moving to phones with big touch screens like smartphones that runs on Google’s Android operating system and Apple’s iPhone.
An analyst from Jefferies & Co., Peter Misek said, “They are just not selling. They are not competitive,” and also noted, “They are getting really hit hard by Android phones.”
Peter Misek said that the company’s future now depends on releasing new BlackBerrys with the new QNX operating system which is designed to compete against Android phones and iPhones. RIM already announced that they are going to release the phones with that software in early 2012.
“They need them out as soon as possible. They need to be good, and they need to be well received by consumers,” he said. “If they are not, they will be in a lot of trouble. It will be very difficult to envision a turnaround if they do not get those out as soon as possible.”