Thursday, April 3, 2008

iPhone influenced RIM’s high profits

AP reports that iPhone might be to thank for Research In Motion’s bigger than usual profits and sales. RIM has benefited from the introduction of the iPhone because it brought attention to smart phones, and more people are starting to use them, said Canaccord Adams analyst Peter Misek.

“People are starting to realize, ‘Why should I buy a Razr when I can buy a BlackBerry or an iPhone?’ I think the iPhone was the single biggest blessing RIM ever had,” he said.

Rim earned $412.5 million in fourth quarter compared to 187.4 million for the same period last year. Revenue jumped to $1.88 billion from $930 million.

They gained 2.2 million new subscribers during Q4, bringing its total to more than 14 million, and sold 4.4 million smart phones.


Apple has said it sold 2.3 million iPhones in the quarter that ended Dec. 29, for a total of about 4 million in the six months since the device’s launch in US.

BlackBerry’s smart phones are cheaper than iPhones, and many people consider them easier to use for e-mail and SMS because they have traditional keypads instead of touchscreens.

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