RIM posts impressive earnings, co-CEO says PlayBook "way ahead" of iPad

Posted:
in iPad edited January 2014
After Research in Motion beat Wall Street expectations with its quarterly earnings Thursday, co-CEO Jim Balsillie asserted on the company's earnings call that the upcoming PlayBook 7-inch tablet is way ahead of Apple's iPad.



RIM announced impressive earnings Thursday for the November quarter, above analyst expectations. With revenue of $5.5 billion and shipments of 14.2 million BlackBerrys, RIM had a strong quarter, though likely not strong enough to catch Apple's iPhone. Apple sold 14.1 million iPhones during the September quarter.



Sales of the BlackBerry Torch, a smartphone that sports a touchscreen as well as RIM's signature mini-keyboard, helped lift the company's revenues.



"The results look pretty good. For the current quarter they definitely benefited from some new products. ? The guidance also looks quite strong," said Kaufman Bros analyst Shaw Wu.



Continued growth from Apple and Android, however, has analysts worried for RIM. "There is some concern that (RIM's guidance) could be too optimistic perhaps because of the ongoing pressure, particularly from Android, in international markets," Wu said.



RIM's focus on international markets was particularly evident this quarter, with just one-third of its revenue coming from the U.S. The Waterloo, Ontario-based smartphone maker has seen its share of the North American smartphone market plunge from more than 50 percent a year ago to about 27 percent, according to Gartner Research.



Invigorated by RIM's better-than-expected results, Balsillie touted RIM and the PlayBook as superior to Apple in a several minute rant during the company's earnings call, Silicon Alley Insider reports. Balsillie's comments were in response to a question from JP Morgan analyst Rod Hall, who asked what RIM's plans were to get ahead of Apple and Google in the market.



"I think the PlayBook redefines what a tablet should do," said Balsillie, who believes the market will shift away from "a proprietary SDK and unnecessary apps," presumably a reference to Apple's iOS and App Store, to "web fidelity and tool familiarity."



RIM's unnecessary app and web fidelity arguments for the PlayBook as superior to the iPad are nothing new. In November, Balsillie criticized Apple with the cryptic comment: "You don't need an app for the Web." RIM has also released a Web fidelity comparison video pitting a prototype PlayBook against the iPad.



"I think there's going to be a rapid desire for high performance. And I think we're way ahead on that," Balsillie continued during Thursday's earnings call. "And I think CIO friendliness, we're way ahead on that."



Balsillie then remarked that RIM's strategy with carriers and content providers differs from that of Apple and Google. Answering his own questions about whether to go over the top of banks, content, carriers, and video content providers, he said, "I mean, who knows, you know?"



"I think the PlayBook clearly sets the bar WAY higher on performance, and you're going to see more," said Balsillie. "I think the BlackBerry is still number one in social collaboration."



Summing up his response, Balsillie reiterated that he thinks RIM is "just well ahead on the PlayBook, well ahead internationally, and extending very very well."



The PlayBook, which was unveiled in September, is set to launch in the first quarter of 2011. Given that RIM left the PlayBook off of revenues for its next quarter, which ends Feb. 26, the PlayBook will likely debut in March of next year, for a price less than $500.



The PlayBook will have fierce competition when it is released, as Apple is expected to follow up its highly successful first-generation iPad with an update in the spring of 2011. According to a recent report by DigiTimes, Apple is expected to produce 6 million second-generation iPads per month, significantly higher than the estimated 4 million per quarter produced for the current iPad.



RIM is betting heavily on the success of the PlayBook. Co-CEO Mike Lazaridis stated in a recent interview that the PlayBook OS will help RIM "jump into the next decade of mobile computing."



In an October survey of business IT Buyers looking to buy a tablet, 80 percent said they would choose the iPad, compared to just 8 percent for the RIM PlayBook.
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Comments

  • Reply 1 of 151
    My condolences to those who end up subject to "CIO friendliness" concerns over anything resembling actual common sense. Enjoy your PlayBooks, and rest assured that once your CIO is through with them, there will be nothing resembling useful functionality left. At least there's no chance of confusing one with an iPad.
  • Reply 2 of 151
    Only... it has absolutely nothing on the iPad when it comes to software. A nice interface does not an awesome device make.
  • Reply 3 of 151
    Quote:
    Originally Posted by NealofThelake View Post


    Only... it has absolutely nothing on the iPad when it comes to software. A nice interface does not an awesome device make.



    Oh, I don't know -- I've been using a Mac for 25 years now, and it was certainly also much more strongly a function of the OS than of the breadth of available software (particularly in the mid-1990s!)
  • Reply 4 of 151
    Wow. For a CEO, he sounds pretty random. And full of cheap jargon.



    Ballmer-lite, anyone?
  • Reply 5 of 151
    mj webmj web Posts: 918member
    The second I read the BS I shorted RIM! April 50 a sure bet!
  • Reply 6 of 151
    But... But... 14.2 million Blackberries is an impressive number...!
  • Reply 7 of 151
    solipsismsolipsism Posts: 25,726member
    Wow! Just wow!
  • Reply 8 of 151
    MacProMacPro Posts: 18,157member
    <Co-CEO says PlayBook "way ahead" of iPad".>



    Jim Balsillie has just ensured his immortality along with Michael Dell and his 'give the Apple share holders their money back' statement.
  • Reply 9 of 151
    I find this rant astonishing. Reading the full transcript he says 'who knows?' 4 times! If I was a RIM shareholder I'd damned-well want to think the CEO knew, or was at least confident he knew. This just sounded like an incoherent, verbal shrug of the shoulders. If that's the top of the leadership, I worry for RIM's strategic thinking.



    Then there's an indefensible claim to be 'ahead' with the Playbook. How on earth can you be ahead of a multi-million-selling product released in countless countries with a product that hasn't sold a single unit...anywhere...it's manifestly nonsensical.



    All that aside, the Playbook can only be compared to the first generation iPad, but that's utterly irrelevant as it is the second generation iPad that the Playbook will be up against, and nobody knows the specs of iPad 2 yet. Is this not business 101 stuff?



    This is definitely a little Balmer-esque...and that's certainly not a good thing if you're a RIM person.
  • Reply 10 of 151
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Jonamac View Post


    I find this rant astonishing. Reading the full transcript he says 'who knows?' 4 times! If I was a RIM shareholder I'd damned-well want to think the CEO knew, or was at least confident he knew. This just sounded like an incoherent, verbal shrug of the shoulders. If that's the top of the leadership, I worry for RIM's strategic thinking.



    Then there's an indefensible claim to be 'ahead' with the Playbook. How on earth can you be ahead of a multi-million-selling product released in countless countries with a product that hasn't sold a single unit...anywhere...it's manifestly nonsensical.



    All that aside, the Playbook can only be compared to the first generation iPad, but that's utterly irrelevant as it is the second generation iPad that the Playbook will be up against, and nobody knows the specs of iPad 2 yet. Is this not business 101 stuff?



    This is definitely a little Balmer-esque...and that's certainly not a good thing if you're a RIM person.



    Great post and welcome to the forum.
  • Reply 11 of 151
    Quote:
    Originally Posted by solipsism View Post


    Great post and welcome to the forum.



    Thanks, it's a good talking shop, good views
  • Reply 12 of 151
    Quote:
    Originally Posted by anantksundaram View Post


    Wow. For a CEO, he sounds pretty random. And full of cheap jargon.



    Ballmer-lite, anyone?



    No no, it's just that when alone, he doesn't have his twin "co-ceo" there to help speak in coherent sentences. The idiotic and chaotic statements that either of them make when not in the presence of the other just shows how two of them cannot equal Ballmer when he gets up in front of analysts, and they certainly don't equal Jobs in giving awesome presentations.



    They should melt these two dolts down and render the remains into soap.



    Co-CEO indeed. Imaging if your wife wanted a "co-husband" around... You just can't share a job like that.
  • Reply 13 of 151
    Quote:
    Originally Posted by solipsism View Post


    Great post and welcome to the forum.



    I second that. Watch out for the solipsist, though!
  • Reply 14 of 151
    Seems to me that Balsillie has conveniently forgotten (or possibly doesn't know?) that before the "app store" even existed, that all iDevice apps (except the default ones from Apple) were entirely web based apps... Oh, and they still can be, so then Apple has SDK based native apps plus the full web based environment for anyone to create any 'app' they want, making it available to any iDevice. So how is it RIM is "way ahead" again?



    RIM, I wish you all the best, but really, come back to reality here, and stop making yourself look foolish by spouting nonsense. Maybe you should focus on factors that differentiate your product, like the fact you'll be producing a 7" tablet. The merits of size might be argued, but at least you'd have a legitimate point to promote.
  • Reply 15 of 151
    One quarter does not predict the success of a company which has faltered in the past.... Their so-called Playbook will not hardly compete with the iPad. Nice try CEO, a slashing of words downgrading the iPad is NOT a way to try and gain support. I personally own an iPad along with numerous freinds and the device is simply outstanding...... Not sure how you think you will be superior to this winner of a device. Nice try but I think you need to brush up on exactly what the iPad has over your so-called Palybook.....
  • Reply 16 of 151
    Way ahead of iPad by not even being released to even developers yet? Way ahead that we've only seen videos of it "working". Way ahead that even the web browser isn't finished? By the time they finally get this for sale, iPad 2 will be out and catapulted way beyond this.



    Why do these companies keep comparing themselves to a device that came out nearly a year ago?
  • Reply 17 of 151
    Quote:
    Originally Posted by Ecphorizer View Post


    No no, it's just that when alone, he doesn't have his twin "co-ceo" there to help speak in coherent sentences. The idiotic and chaotic statements that either of them make when not in the presence of the other just shows how two of them cannot equal Ballmer when he gets up in front of analysts, and they certainly don't equal Jobs in giving awesome presentations.



    They should melt these two dolts down and render the remains into soap.



    Co-CEO indeed. Imaging if your wife wanted a "co-husband" around... You just can't share a job like that.



    Has anyone considered the possibility that all of the CEOs (Can't Effectively Operate) of Microsoft, Adobe, RIM, Google, etc that feel that they can wipe Apple's okolee (Hawaiian for you know what) have all taken the same late night shopping network Gunter-Ranky business training programme -"How To Run Your Company Into The Ground By Not Innovating and Only Copying The Industry Leader"?



    Sure seems like it.



    Soap is to good for these wankers... (Aussie for - well, you can probably figure that one out, too).



    Cheers...
  • Reply 18 of 151
    sheffsheff Posts: 1,407member
    So an unreleased, untested future product for "the web" will be totally better then a year old device built on a solid and mature os that does both apps and web really well. I have my money on iPad v1, and by that time v2 will at least match if not surpass whatever web advantages rim comes up with.



    I think rim has a good chance of staying relevant, unlike ms, I just don't think they can beat android or iOS just now. They can however utilize their business software and recognizability to maintain business customers.



    Edit: and of course they gotta move fast cause something like 70% of the 7% of business users who own a tablet have an iPad according to recent posts on this site.
  • Reply 19 of 151
    Quote:
    Originally Posted by MJ Web View Post


    The second I read the BS I shorted RIM! April 50 a sure bet!





    Who wouldn't short the stock. Only a FOOL would own this caboose of a stock. The real "engine" is APPLE>>>>
  • Reply 20 of 151
    Quote:
    Originally Posted by jkichline View Post


    Way ahead of iPad by not even being released to even developers yet? Way ahead that we've only seen videos of it "working". Way ahead that even the web browser isn't finished? By the time they finally get this for sale, iPad 2 will be out and catapulted way beyond this.



    Why do these companies keep comparing themselves to a device that came out nearly a year ago?



    AMEN... These are your so called "KILLERS"..... What a joke............... They are SO jealous of APPLE all they can do is bash the company. By the time they try catch up with their devices, APPLE is onto a new breakthru in technology while the competition is devloping the "OLD". I think this whole article is simply Hilarious. The CEO of RIMM is DEFINITELY on something..............
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