Research in Motion decides to withhold certain metrics in its reports; critics raise voices

Posted by Knowlton Thomas

research in motionResearch in Motion recently announced that, following its next fiscal quarter, it will no longer disclose two key metrics: The average selling price for its Blackberry products and new subscriber volume.

The Canadian tech titan has decided to withhold this information for a few reasons. First, competitors don't disclose comparable metrics. Second, forecasting customers is "increasingly difficult" due to the "growing complexity" of their business. Third, investors seemed to cling to tightly to the wrong metrics - for example, RIM beat revenue expectations in it last fiscal report, yet its share price didn't rise because people couldn't get over its under-performing, though less important, new subscriber volume.

Still, investors are grumbling - subscriber metrics tell the tale of how RIM is competing in the warzone that is the smartphone market, with the iPhone and Google Android phones gaining market share. And analysts are skeptical - when a company stops reporting data, it's naturally suspected that they have something to hide.

Investors and analysts obviously prefer greater statistical visibility and transparency, but RIM will likely not budge on this. Over-disclosing information was a competitive disadvantage for RIM, according to Co-CEO Jim Balsillie. 

In two fiscal quarters, we'll know for certain.

Company:
BlackBerry
Website:
http://www.blackberry.com
Location:
Waterloo, Ontario, Canada

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry solution in 1999. Since then, BlackBerry products and services have continued to change the way millions of people around the world stay connected. With the launch of BlackBerry 10, we have re-designed, re-engineered and re-invented BlackBerry. Not only did we introduce a... more


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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis or otherwise enjoying the outdoors. more



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