RIM Cuts Prices in India to Preserve Market
BlackBerry-maker Research In Motion (RIM) has slashed the retail price of some of its smartphone models in India by up to 27 percent, according to a report by Reuters.
Prices have been slashed on four of its smartphone models, including the entry-level Curve 8520. The four models accounted for about 60 percent of the company's sales in India.
RIM is doing this in a move to boost sales in the world's second-biggest mobile phone market, according to the report.
RIM is facing severe competition from Apple and Android smartphones in India.
Value Walk said in a report RIM made the move one day ahead of its Q4 2011 earnings announcement. "The price cuts show that demand for their products must be lower than they had hoped in the subcontinent," said the website. "The cuts are probably an attempt to move more models of their phone and take a cut in the margin."
According to BGR, RIM beat expectations in the third fiscal quarter when it reported revenue of $5.2 billion and earnings of $1.27 per share. Fourth quarter results, however, were disappointing; Rim's revenue dropped 25 percent from the previous year to US$4.2 billion. The company recorded a net loss of $125 million, or $0.24 per diluted share. Analysts were expecting just slightly better revenue, projecting revenue at $4.54 billion.