The company is launching three major new models in the current quarter, and the cost of ramping up production will trim the company's gross profit margin, co-Chief Executive Jim Balsillie said.The stock went down 20% in after hours. Ouch.
Well, it was to be expected. The iPhone can do pretty much what the BB can, although it does not have a keyboard (but it is so much cooler: "it is like jewelery" told me a friend yesterday). The G1 even has a keyboard. Not counting Windows Mobile, which is growing fast in the enterprise. Then there are thousands of smartphones about to be launched... All going for the existing BlackBerry market (tough fight) but, mostly, for the market RIM was hoping to expand into (consumers). On top of it, your core market (finance) is collapsing and your most faithful customers are seeing packing their stuff and shutting the doors behind.
The time of the smartphone is now. If you have to catch up on 3G, touchscreen, browsing, music, coolness, App Store and MobileMe... It gets hard. Funny how quickly the world changes.
