Research In Motion expects its PlayBook tablet and new BlackBerry smartphones to power growth in 2011 as it continues to compete against rival Apple and Android products for market dominance.
RIM will launch the PlayBook tablet to compete against the iPad and other computer tablets, with analysts watching to see how the BlackBerry maker fares in the competitive North American market.
“I think we are laying in the pieces here to sustain really exciting growth for a long, long, long time,” co-CEO Jim Balsillie told a conference call Thursday after the company reported strong quarterly results that exceeded expectations.
“I feel great about where we are sitting for 2011 with the carriers and in North America,” Balsillie told analysts.
The Waterloo, Ont., company (TSX:RIM) reported record third-quarter results, helped again by strong international growth and sales of its new BlackBerry Torch, which has a touchscreen and a pullout keyboard.
Balsillie said the PlayBook tablet, a small computer with a touchscreen that can run software applications both for business and personal use and also stream movies and TV shows, will have strong corporate appeal.
“We’re committed to ensuring the BlackBerry PlayBook is enterprise-ready for launch,” he said, adding that it will have the same level of security as a BlackBerry smartphone.
The PlayBook will have a new operating system based on technology from RIM’s recent acquisition of QNX, a maker of a real-time operating systems used in vehicle navigation systems. That technology is also expected to work its way into new BlackBerry smartphones being introduced next year.
“The PlayBook is expected to begin shipping in the United States in the first quarter of 2011,” Balsillie said, noting the tablet will have WiFi only and be sold at retailers.
He noted that RIM has made acquisitions this year such as QNX and interface designer The Astonishing Tribe to help work on new products.
“This is not a time to be penny-wise and pound foolish when you’re really grabbing position in this rapidly expanding space because it’s not just competition between players in the space — it’s expanding to do things you normally didn’t do in mobility.”
Research In Motion said it earned US$911.1 million, or $1.74 per diluted share in the third quarter. That compared with a profit of $628.4 million or $1.10 per share a year ago.
Revenue for the quarter totalled $5.49 billion, up from $3.92 billion.
RIM said 48 per cent of its subscriber base in the quarter was international customers.
“International markets continue to adopt BlackBerry in record numbers and BlackBerry is the No. 1 smartphone in several markets in Western Europe, including the U.K.,” Balsillie said.
He said pre-paid BlackBerrys were the top sellers in countries such as Indonesia and the Netherlands, appealing to young consumers who like text messaging and social networking.
But since much of the company’s growth has come from international sales in recent quarters, analysts have wondered if RIM’s best days are behind it.
Apple recently surpassed RIM to become the world’s fourth-largest mobile phone vendor reflecting the release of the latest version of the company’s iPhone, tech trends firm IDC has reported.
Apple’s market share globally increased to just over four per cent, up from 2.5 per cent in the same quarter last year, IDC said. RIM’s market share was 3.6 per cent, up from 2.9 per cent.
BMO Capital Markets analyst Tim Long called RIM’s quarterly results “another solid beat.”
The results were “way better than our above-consensus estimates, and guidance was even more positive,” Long wrote in a research note.
Long said revenue was above his estimate of $5.42 billion and consensus of $5.46 billion. Earnings per share was above his estimate of $1.67.
“We remain positive on the stock and view this quarter as another step toward improving sentiment,” Long wrote.
Shares in the company, which reported its results after the close of markets, were up 13 cents at C$59.61 on the Toronto Stock Exchange.
RIM said it added about 5.1 million net new BlackBerry subscribers in the quarter to bring the total subscriber account base to over 55 million.
RIM shipped 14.2 million devices during the quarter.