RIM buoyed by consumer sales

 

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By Reuters

Posted on 21 Dec 2007 at 11:35

Research In Motion has reported third-quarter revenues of $1.67 billion, as its push into consumer markets begins to bear fruit.

RIM, which has traditionally relied on its enterprise customers, says consumer subscribers now account for 34% of its subscriber base, significantly boosting its revenues from the $835.1 million recorded in same period the prior year.

The BlackBerry maker has launched a number of consumer focused models, such as the Pearl, in recent months in order to diversify its traditional customer base. As well as this, carriers that offer BlackBerry smartphones have been promoting the devices and offering cheaper data plans, which has helped stoke RIM's growth.

RIM says it expects to add about 1.82 million subscribers in its fourth quarter, short of the 1.88 million that analysts were expecting, though potential revenues of between $1.8 billion and $1.87 billion are higher than earlier forecasts.

"We believe that the enterprise market remains under-penetrated and that there are many opportunities for growth both in North America and markets around the world," says Jim Balsillie, RIM's co-chief executive.

"I think overall, the market is going to look at it and say they are pleased, at best, on the subscriber addition side of it. But I think it's the bottom line that the people are going to focus on," comments Research Capital analyst Nick Agostino.