RIM Doubles Q4 Results… Almost Doubles Year

hellyes
#1. April 3rd, 2008, at 7:36 AM.

The iPhone must be killing the BlackBerry softly.

bluehorseshoe
#2. April 3rd, 2008, at 8:32 AM.

Cha-Ching!

Thought
#3. April 3rd, 2008, at 10:05 AM.

With all that money, you’d think they could invest in enough infrastructure to avoid service outages!

Also, you’d think they could hire enough engineers to develop and release the CDMA versions of devices approximately simultaneously with the GSM versions.

GBVZ
#4. April 3rd, 2008, at 1:18 PM.

… you’d think…

bluehorseshoe
#5. April 3rd, 2008, at 1:54 PM.

@ Thought…

Speaking from experience working on Wall Street, their first and main concern is the shareholder. Any expendatures spent need to be justified. While there may be a case to expand the IT infrastructure now that they’ve shown considerable growth in the past year where they are adding millions per quarter now (in spite of the release of the iPhone), I think going forward they’ll be able to justify the expense. It will, however, be a hard task for them to continue this pace, and any dip in revenue and profit will create a concern among the shareholders and street analysts. Any concern would automatically create a pullback into investments in the infrastructure.

But right now it’s looking bright, and I’m going to guess they will spend going forward to match the increase in their customer base.

craigk
#6. April 3rd, 2008, at 5:18 PM.

@bluehorseho

Speaking from experience of common sense, this is the best time to put the money into infrastructure. When there is money coming in at a record pace the shareholder doesn’t scrutinize expenditures with a fine tooth comb. Try doing this when they a less than stellar quarter.

GBVZ
#7. April 3rd, 2008, at 5:55 PM.

@ bluehorseshoe

Well said. That’s a good point. I usually try and think of the business aspect of decisions too. After all… money talks. I’m happy with the ultimate conclusion you came to.

Thought
#8. April 3rd, 2008, at 6:19 PM.

@ bluehorseshoe and GBVZ: I agree…that makes 3 of us…great minds think alike

I would add that hopefully RIM realizes that they got where they are by maintaining a reputation for quality and reliability, and so that investing in infrastructure really does serve the bottom line.

I don’t know of many companies that have gone down or gone under by investing in quality of product. I know of several companies to suffer due to perceptions of poor quality.