OK, Research in Motion (RIMM), it’s great that you raised BlackBerry subscriber guidance 15%-20%, but we have a question for you: Why didn’t you also increase revenue guidance? We know you want your stock to go up–thus the mid-quarter unit update–but if business is that strong, why do you “continue to expect that revenue and EPS will be in the ranges previously forecast in December“?
Seems to us, there are two possible answers:
- You just want to “surprise” on the upside. If so, this seems a bit silly. It won’t really be a surprise anymore. Also, now that you’re raising unit guidance but not revenue guidance, you’ve created this big mystery/concern, so it if turns out that you’re just gaming everyone, some folks will probably be pissed.
- Your unit growth is coming at the expense of price discounting or sales of lower-end plans. Sorry to say but this is the most likely explanation. How else can unit growth be coming in 15%-20% above your previous expectations while revenue stays the same? Is the upside coming from lower-priced, lower margin consumer plans–or are you discounting to your corporate customers? Either explanation should temper the market’s jubilant response to your unit guidance increase yesterday.
The new RIM Revenue Mystery. We’re on the edge of our seats
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.