RIM to pursue consumer markets despite $125m quarterly loss

BlackBerry manufcaturer RIM sees smartphone and tablet sales slump as troubles continue

Research in Motion's troubles continue as a $125m quarterly loss sees rumours ignite around the BlackBerry maker leaving consumer markets

Update: BlackBerry hits back at reports it will be pulled from consumer markets

BlackBerry parent company Research in Motion continues to face financial problems with a $125 million quarterly loss sparking speculation the company is to withdraw from consumer markets.

With struggling smartphone sales and the continued poor performance of the company’s PlayBook tablet, BlackBerry saw the three months leading up to March 3rd result in a $125m (£78m) net loss compared with a $934m (£584m) profit 12 months ago.

With RIM’s overall revenues falling by $1bn to $4.2bn, investors in the Canadian firm have become nervous with shares in the Bold and Curve manufacturer falling 9 per cent in the hours following the bleak financial report announcement.

Having shifted just 11.1 million smartphone devices it the latest three month period, down 21 per cent on the previous quarter, reports have suggested RIM will now turn its back on consumer markets and refocus its efforts on the business sectors that gave it an original foothold of the smartphone scene.

"We plan to refocus on the enterprise business and capitalise on our leading position in this segment," the recently appointed RIM CEO Thorsten Heins said following the new revelations. He added: "We believe that BlackBerry cannot succeed if we tried to be everybody's darling and all things to all people. Therefore, we plan to build on our strength."

BlackBerry sales have struggled in recent years with the introduction of the Apple iPhone and a flurry of high-end Android handsets encroaching on the brand’s specialist business smartphone market.

Despite Heins' comments, BlackBerry and RIM have hit back at claims that it will no longer compete in consumer markets insisting it is to continue to persue the flight for widespread smartphone supramecy.

"The claim that RIM has said it will withdraw from the consumer market is wholly inaccurate,” said Patrick Spence, Senior Vice President and Managing Director of global sales and regional marketing for RIM.

"Whilst we announced plans to re-focus our efforts on our core strengths, and on our enterprise customer base, we were very explicit that we will continue to build on our strengths to go after targeted consumer segments.

He added: “We listed BBM, as well as the security and manageability of our platform, amongst these strengths."

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Via: BBC