Slowdown to hit BlackBerry sales

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Research In Motion, maker of the business smartphones, shocked analysts with a cautious outlook for the current quarter despite more than doubling revenue the previous one.

Sales surged to $2.24 billion (£1.14 billion) in the three months to 31 May, with 2.3 million more subscribers. Net profit was below estimates at $482.5 million, and RIM said the second quarter was going to be tougher. The firm had previously beaten expectations for several quarters in a row.

Signs are that RIM might be reaching a saturation among business customers, and has focused on pushing into the retail market.

But those consumers may also be unwilling to spend on the devices that are not seen as a business-essential.

The company is betting that new product launches of cheaper models will fuel growth despite the slowdown in the global economy.