Research In Motion Limited (USA)(NASDAQ:RIMM) shares are having crazy run up in afterhours session on Thursday as the struggling Blackberry maker has managed in beating analysts forecast although it swung to second-quarter net loss.
The company which has been under pressure in the smartphone market, reported that it lost $235 million or 45 cents a share, in the quarter, reversing a year ago profit of $329 million, or 63 cents. On an adjusted basis, the company would have lost 27 cents a share, compared with a profit of 80 cents a share a year ago. Revenue during the quarter slid 31% year over year to $2.87 billion from $ 4.17 billion a year ago.
Analysts were estimating the company to report 46 cents a share on $2.5 billion in revenue.
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The company said it shipped 7.4 million BlackBerry smartphones during the quarter and 130,000 PlayBook tablets.
Over the past few quarters, the company has been struggling to get back its glory considering solid innovation from its rivals Apple's (aapl) iPhone and smartphones that operate on Google's (GOOG) Android operating system.
Shares of RIMM have popped up 21% to $8.63 in extended hours, but still down 51% so far this year and 70% over the past one year.
Meanwhile, The new Apple Inc.(NASDAQ:AAPL) iPhone5 has surely made its mark, by selling five million copies in the first weekend of its release. However, reviews for the phone did have negative things to say about it as well. The new smartphone has replaced Google Inc(NASDAQ:GOOG) Maps as its default maps application, and instead, have unveiled their own maps application, the iOS 6 Maps. However, these maps are being called inaccurate by a number of users and analysts, and disgruntled, disappointed users are turning to Google Maps for comfort.
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Google Chairman, Eric Schmidt stated that Apple made a huge mistake by removing the Google Maps, and that Google is still waiting to check with Apple is the App Store will approve of Google Maps replacing the in-built iOS 6 maps on the phones. Apple and Google are still discussing these issues, according to sources. They are still deliberating over how to proceed, since both the companies have shared a long working relationship, and the advent of the maps by Apple seems to have disturbed the comfort between the two companies.
Schmidt’s statements, however, have been received in various ways, thereby prompting people to say that he was being ambiguous about how Google and Apple are really proceeding. Google may be looking and researching into the iOS replacements.
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Despite the fall-out, and despite the fact that Apple created and launched the iOS 6 Maps even before their agreement with Google ended, the latter would still like to maintain cordial relationships with Apple because the company has provided them with a platform for free advertisements for a very long time, and Google’s helping Apple can only bring up its own image as the more compromising of the two companies, which, despite being unceremoniously replaced, is still willing to extend a helping hand.
Maps on smartphones have become a very important feature, which is greatly valued by the user. Being such a practical application, Maps have become a money-milking platform, but in order to get money out of this venture, it was essential for Apple to create its own Maps Application, instead of using Google Maps in its phones. However, it looks like Apple is going to have to turn to Google ultimately.