With Research In Motion’s next-generation smart phones still at least five months away comes more word of the company’s struggles.
RIM’s share of the global smart phone market dropped to 5 per cent in the second quarter of this year, according to figures released Wednesday by a Canadian financial brokerage.
The report from National Bank Financial analyst Kris Thompson said the Waterloo, Ont.-based company’s international revenues are following the drop in Canada and the U.S., which is “very concerning.”
For the three-month period ending in May year over year revenue dropped 73 per cent in Canada, 47 per cent in the U.S., 46 per cent in the U.K. More significantly to Thompson is that in the rest of the world revenue dropped 36 per cent. That is “most concerning,” he wrote” since RIM is counting on its growth in international markets to help regain market share.”
He noted RIM has expansion plans in Dubai, Africa (including flagship stores in Nairobi, Kenya and Lagos, Nigeria) and India (plans to add15 stores by the end of the year, including Mumbai, Bangalore and Kolkata).
Globally. RIM [Nasdaq: RIMM] was knocked out of fifth place in smart phone sales by China’s ZTE.
The average selling price of BlackBerrys has also dropped the report adds – as it has for iPhones as well. But Thompson believes RIM has dropped prices for competitive reasons, while Apple’s decline has been in part due to an increase in sales of its lower-priced 3G and 4G models and a higher U.S. dollar.
RIM has put all of its hope into the launch of smart phones that will run the new BB10 operating system. However, that often-delayed debut won’t happen until early next year.
Sales of its current BlackBerry handsets, which run the BB7 operating system, have slowed as buyers turn to what they see as more advanced devices.
RIM has reported slumping revenue in the past several quarters and have warned more of the same is expected in the short term.
RIM will issue its next quarterly financial results Sept. 27.
The company is looking to craft a new strategy that will possibly include patent sales, licencing the BlackBerry operating system to other handset makers and joint ventures.