Delay in BlackBerry launch forces RIM to cut subscriber forecasts by 8 percent

Delay in BlackBerry launch forces RIM to cut subscriber forecasts by 8 percent

OTTAWA - BlackBerry manufacturer Research In Motion Ltd. was forced to tone down its forecasts for the subscriber numbers in the third and fourth quarters citing delay in the shipment of two new devices. However, the sales forecasts were unchanged.

In September, RIM had forecast that it would be adding 680,000 to 710,000 new subscribers, but has lowered this forecast by 8 percent The Company said that the revision in its subscriber numbers was mainly due to the problems with the BlackBerry 8700 Series for EDGE (Enhanced Data rates for Global Evolution) networks. The forecast for its fourth quarter ending March 4 was also lower by 3 percent as compared to its earlier forecasts.

There is also the looming threat of a verdict from the Virginia court, where a jury found that RIM was culpable for having infringed on the patents of another company, NTP Inc. RIM has said that it is willing to negotiate a $450 million settlement, but Judge James Spencer can also opt to stop BlackBerry service in the country. If he does that them RIM's network will be well and truly crippled. It is unlikely to happen and analysts say that the Waterloo, Ontario-based Company could go up to $1 billion to settle the case.

RIM executives hope that the introduction of BlackBerry 8700 and 7130 series handsets would drive growth in the forthcoming quarters, James Balsillie, the chairman of the company said as much in a news release, "While the delay in launch dates for these two highly anticipated products caused a timing shift in expected subscriber additions, the products are becoming available now and will help drive significant growth in the coming quarters." Both the models are set to hit the markets in December and with the Christmas season almost here, RIM anticipated good sales. The company also said that it was hoping to net $540 million to $570 million in the third quarter ending November 26.