RIM exceeds everyone’s expectations, including RIM’s

By • Sep 24th, 2010 • Category: Blog

RIM has released its 2nd Quarter earnings for the 2011 fiscal year, exceeding all expectations. RIM’s stock price jumped from 83 cents a share to $1.46 a share, making profits jump from $475.6 million to $796.7 million. Sales increased from $3.5 billion to $4.6 billion, slightly over Wall Street’s projections of $4.5 billion.

So what happened, how did RIM manage to break all expectations? Well, there are a couple things to consider. First, the demand for smartphones has grown faster than anyone predicted. People are upgrading and buying new smartphones at higher rate than expected, and when they upgrade in the business world, they’re usually buying or upgrading to the BlackBerry.

Second, the hype surrounding the Apple iPhone and Google Android is still just that, mostly hype. These devices show a lot of promise and can do a lot of things, but RIM has been pushing BlackBerrys for a lot longer and has a more entrenched presence within the enterprise wireless market. A lot of experts were expecting the hype surrounding the iPhone and the Android to eat into RIM’s share of the enterprise wireless market, but as these earnings conclude, RIM still owns the enterprise space and is not likely to give it up just yet.

Tagged as: , , ,