BlackBerry Maker Posts Larger-Than-Expected Loss
Shares of BlackBerry maker Research In Motion plunged nearly 30 percent Friday after the company posted a loss and warned of future losses despite releasing its make-or-break new smartphones this year.
RIM also announced that it will stop developing new versions its slow-selling tablet computer called the Playbook.
Analysts were looking for insight into how phones running RIM's new BlackBerry 10 operating system are selling. It wasn't good.
RIM said it sold 6.8 million phones overall versus 7.8 million last year. That includes older models. In the conference call, it said about 2.7 million new devices were BlackBerry 10 models. RIM's new BlackBerry 10 operating system is widely seen as critical to the company's comeback.
But the company said it anticipates it will generate an operating loss in the second quarter too.
Mike Walkley, an analyst with Canaccord Genuity, said it's clear the new operating system has not turned the company around.