The reports are in, and while there are some positives, the negatives outweigh this time around. Net income for the first quarter was a low $695 million, or $1.33 per diluted share, compared with net income of $934 million, $1.78 per diluted share in the fourth quarter of last year - that's down 26%. Also, revenues came in at $4.9 billion, down from $5.6 billion in the fourth quarter, or a 12.5% drop.
And as to smartphone and tablet shipments, during the first quarter, RIM says that it shipped approximately 13.2 million BlackBerry smartphone devices and about 500,000 BlackBerry Playbook tablets. However, these numbers are what has shipped, not been sold. RIM also is not releasing the official number for PlayBook's sold. I'm guessing that the number may reflect negativity on how the PlayBook has fared in its' first few couple months since launched. As a result of its declining financials, RIM said that it will begin a series of layoffs beginning this quarter.
However, there is a upside to all of this. RIM seems to be kicking it in the rear as we heard today from a Verizon CMO that Big Red would be selling three of the upcoming BlackBerry devices
in Verizon stores. That is when RIM had the glory days, when Verizon was their top seller. Perhaps a rekindled relationship between Verizon and RIM can bring the US subscriber base up and save RIM from a bad fall.
What are your thoughts? Any predictions?