RIM's Profits Crash as 1m Subscribers Abandon Ship

By Gary Cutlack on at

Even the Mayans could've seen this coming. BlackBerry maker RIM has seen its profits collapse this year, with the troubled phone company banking just £5.5m last quarter compared with £163m the year before.

The massive profit crumple was brought about in part by a fall in subscriber numbers, with RIM saying its user base now stands at 79 million, one million fewer than in the same period of the previous year. That's the first fall in user numbers the company has ever seen, which is quite a feat given how ubiquitous smartphones have become over the last few years.

The raw revenue numbers are even worse. Rim's total income for the quarter was $2.7billion, a huge 47 per cent down from the previous year's takings. It's not been a total disaster, though, as RIM now has $2.9bn in cash reserves, plus subscriber losses in the US have been partially offset by a rise in business in developing markets.

Plus, of course, the new BB10 hardware and software is going to be battling Windows Phone 8 for the smartphone race wooden spoon in a month's time, which should see it attract at least a couple of hundred new users. [Telegraph]