Research in Motion illustrated Thursday that its fate depends on the performance of its next operating system, BlackBerry 10. Investors made it clear they will have little patience with the company if it doesn’t live up to expectations.
RIM reported better than expected revenue, sending its stock up in after-hours trading. But comments from chief executive Thorsten Heins saying that the company was planning to eliminate service fees for some new customers sent the stock back down — and quickly. Ahead of the market’s open Friday, RIM shares were trading at $12.33 after closing at $14.12 on Thursday.
Heins said that RIM will continue to charge the fee to those who want enhanced services, such as advanced security, but that consumers or businesses that don't want the extra services are expected to generate “less or no service revenue.”
Service fees made up 36 percent of the company’s revenue in the third quarter, or nearly $9.8 million. It was the second-largest source of revenue for the company, after hardware.