Less Data From RIMM

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When Research In Motion
RIMM
reports its third-quarter results this Thursday, it will be the last time investors will hear about how many new users purchased the company's most popular device, the BlackBerry. Likewise, the company will not make any public predictions regarding the number of consumers it expects to purchase a BlackBerry in the coming months. After Research In Motion's 3Q results, investors will no longer hear about how the average selling price of the BlackBerry, nor will it reveal what it expects the average price to be in the future. Why, going forward, would the company choose to divulge fewer details?
Barron's
reports that RIMM management blames it on metrics, saying that they don't mean as much as they once did. Barron's also notes that these very statistics have been used to attack RIMM in recent quarters. How will this impact existing and prospective investors? Not much, as Barron's said that the challenges Research In Motion faces will have little to do with BlackBerry's retail price. In 2011, the company will launch a new device – the Playbook – designed to compete with Apple's
AAPL
iPad and other tablets. It will use an all-new operating system, QNX, that was designed specifically for the Playbook. For the time being, the BlackBerry will continue to use its existing OS. But later in 2011, the smartphone will switch over to the PlayBook's operating system. Unfortunately, Barron's said that Research In Motion doesn't have the best track record for shifting to new technology. The BlackBerry Storm is one primary example; as a touch-screen smartphone, it was designed to combat the iPhone. But it, like so many others, failed miserably. In the six months ended in August, U.S, revenue is down 5%. Meanwhile, RIMM's shares are down 8% this year. If there is any good news to report, however, investors can take comfort in the short-term expectations. When RIMM reports on Thursday, Barron's expects it to exceed the Street's forecast of $5.5 billion in revenue and $1.64 per share in earnings.
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