RIM Earnings Solidify Smartphone Dominance

RIM reported revenue of $3.46 billion for the fourth fiscal quarter of 2009, a massive 24.5 percent jump from $2.78 billion in the previous quarter and a towering 84 percent increase over the same quarter in 2008.

RIM's skyrocketing quarterly revenue can be chalked up to its consistent release of must-have devices that target not only its bread-and-butter business users, but also the tech-savvy consumer. Where other smartphone makers have seen sales dip or stay relatively flat, RIM and its BlackBerry line continues to boom. According to RIM, devices made up roughly 83 percent of its fourth-quarter revenue, while service and software accounted for 12 percent and 2 percent, respectively.

In the fourth quarter, RIM shipped roughly 7.8 million devices and for the fiscal year shipped about 26 million handhelds. In addition, RIM added 3.9 million net new blackberry subscriber accounts, pushing its full subscriber base to more than 25 million worldwide.

"We are very pleased to report another record quarter with standout subscriber growth that speaks volumes about the early success and momentum of our new BlackBerry products," RIM Co-CEO Jim Balsillie said in a statement. "RIM experienced an extraordinary year in fiscal 2009, shipping our 50 millionth BlackBerry smartphone and generating $11 billion in revenue. Looking ahead into fiscal 2010, we see exceptional opportunities for RIM and its partners to leverage the investments and success of the past year to continue growing market share and profitability."

Throughout the fiscal year, RIM released a lineup of solid devices, taking on the Apple iPhone 3G with the BlackBerry Storm, its first-ever touch screen, which captured not only its core business users but also opened the door to more consumers. RIM's quarterly success can also be attributed to the releases of the BlackBerry Curve 8900 and continued adoption of the high-end BlackBerry Bold.

And with a handful of other key devices slated for this year, including the BlackBerry Gemini and the BlackBerry Niagara, RIM also offered a strong outlook as it moves into the first fiscal quarter of 2010, which ends May 30. RIM expects revenue in the first quarter to hit between $3.3 and $3.5 billion and that net subscriber account additions will again reach the 3.7 million to 3.9 million mark.

RIM is also expecting the release of its BlackBerry App World, a mobile application marketplace similar to Apple's iTunes AppStore, to spark sales. After months of buildup, BlackBerry App World, an on-device client where users can browse, buy and download applications for their BlackBerry smartphones, officially launched this week.