RIM Stock Takes a Dip on News of Changing Source of Revenue

RIM stock plungesShares of Blackberry-maker Research in Motion plummeted Friday morning despite the company having announced better-than-expected Q3 earnings yesterday. The company also announced a better cash position for the quarter as it is set to launch a marketing drive for two new phones on January 30.

However, in a conference call with investors and analysts, RIM chief executive Thorsten Heins said that the company’s service-revenue model would change significantly next year. Currently, RIM’s revenue is based on the service fees it charges customers for use of their proprietary network. This accounts for more than a third of RIM’s revenue. However, Heins did not specify the changes to revenue stream they were expecting, which has made the market nervous.

 

Nishtha Shukla Anand

The founder and CEO, Nishtha has extensive experience of more than 15 years of media experience. She worked with leading media houses such as India Today, Pioneer and Reuters before setting out to do something on her own in 2006 with Pen Pundit Media Services.

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