Research In Motion’s lower than expected revenues of $3.53 billion verses $3.62 billion expected, and at the lower end of the range for new subscribers disappointed investors reports an article on Forbes.
Revenue guidance for the following quarter was lower than expected although earning a share reported for both the 2nd quarter and guided 3rd quarter exceeded expectations.
The day before earnings, Research In Motion traded at $87.44 and closed at $83.06 before earnings were released and refracted to 23 percent or $67.55 since the earnings were announced.
Management have discussed their strategy to sell more units to follow up later with service offerings, and have guided to improve gross margin along with price cuts for BlackBerry smartphones which signals a shift away from the high end to the mid range segment within the smartphone market.