BlackBerry maker Research In Motion on Thursday said it sold fewer BlackBerry phones than analysts had expected and that the company's quarterly earnings were hurt by a legal settlement.
Even though RIM still saw strong sales of BlackBerrys, the news sent the company's stock price tumbling in after-market trading. Many are now wondering if RIM's disappointing sales are an indicator of a wider smartphone slowdown or if the news is an indication that the company is losing its edge in an increasingly competitive market.
RIM's co-CEO, Jim Balsillie, said the company is still in very good shape.
"This stuff (smartphones and mobile applications) is going much more mainstream," he said during the conference call. "And we are teed up to go much more mainstream. If this crosses over, as I think we are doing, we are in a good position and a very prosperous position."
He told investors and analysts that they shouldn't look too deeply into the sales numbers for hidden indications of a market slowdown. And despite a lackluster forecast for the next quarter, he said sales are set to explode in the long term.
"I appreciate looking for trends," he said. "But I don't think you should extrapolate too much over a little bump here or there."
Balsillie said earnings fell 4 percent in the second fiscal quarter due in large part to charges associated with a legal settlement.
For the quarter that ended August 29, the company said it earned $475.6 million, or 83 cents a share, compared to profits of $495.5 million, or 86 cents a share, for the same period a year ago.
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