RIM to miss earnings target on poor PlayBook sales
WATERLOO, ONT.óResearch In Motion Ltd. expects to miss its full-year financial targets as it takes a big charge because of poor tablet sales.
The smartphone maker says it will book a pre-tax charge of about US$485 million on its books in the third-quarter.
The non-cash charge reflects the lower value of the unsold inventory of its BlackBerry PlayBook tablets.
Sales of the device have been weaker than expected for the company.
RIM says it will need to heavily promote and discount the tablet in the face of stiff competition in the market.