RIM scores Bitter Sweet Victory with BlackBerry Storm, Bold
The popularity and high demand for the BlackBerry Storm may seem like a sure indication that things are going well at RIM headquarters, but it seems that it brings both good and bad news to the company.
Thanks to both the Storm and Bold, RIM has managed to increase their user base by a whopping 75% and have more people lined up to get these BlackBerry beauties, but now they’re having problems keeping up with the demand and it has come at a costly price. Trying to stay in step with industry leaders such as Nokia and Samsung, RIM has had to lower the price of their handsets which in turn took a toll on the company’s profits despite revenue improving by 66% to $2.78-billion this year as compared to the $1.67-billion a year ago.
They’re optimistic, however, that if the demand continues and they manage to get the Storm and Bold manufactured at a lower cost, profits will eventually return to status quo.
While this latest news may be a bitter sweet pill to swallow for RIM and its investors, it’s good to know from a consumer’s standpoint that they aren’t fixated on just making huge earnings, and they’re actually amicable to adjusting the price of their handsets so as to remain competitive in the current market.
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