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RIM Tweaks Subscriber Addition Forecasts

2:14 pm on November 23, 2005 | Category: Business, Corporate, Wireless

BlackBerry email device maker, Research In Motion, warned its shareholders this morning that the number of new subscriber additions is somewhat lower than initially expected for the second half of this year, due to product delays.

The fourth-quarter forecast, which called for subscriber additions of 775,000 to 825,000, was cut by about 3%.

The companyâ€™s stock price dropped dramatically to a low of C$72.80 in early trading, but recovered nicely during the trading day for a close of $78.00.

This sudden drop and recovery was a clear case of sudden investor panic. This panic was short-lived, however, due to the companyâ€™s insistence that the change in forecast wonâ€™t affect overall revenue. The fourth-quarter sales and profits predictions remain completely unchanged.

“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,” said company chairman, Jim Balsillie in a release.

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