RIM forced by carriers to cut BlackBerry service price


Canadian based smartphone manufacturer Research In Motion admitted that they are being pressured from telecommunication companies to slash the price of their BlackBerry data network.

RIM disclosed the news during a filing last week with the Securities and Exchange Commission.

During the first fiscal quarter, RIM said that 36% of their company’s income comes from the BlackBerry service. This amounts to about $2.8 billion in quarterly revenue.

RIM admitted that the next few quarters would still be turbulent for the company. They added that due to increase in competition, lower handset volumes, impact from the late released of their latest OS (BlackBerry 10) and they plan to continue to push for sales of their BlackBerry 7 based handsets.

The company is expecting to still have losses during the second quarter of next year.

RIM spokesperson Nick Manning told Bloomberg, “RIM intends to continue generating a revenue stream from the services we offer.” (Speaking about the BlackBerry service, BIS and BES)

RIM’s continued nose dive in both sales and market has led to telecom companies demanding for price reduction in their BlackBerry service.

Research In Motion’s stock is continuing to plummet due to the late release of their much anticipated BlackBerry 10.

Can RIM bounce back?

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