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They had recently been increasing volume (and to an extent profit) by cutting prices, of course there is only so far you can cut into prices before profit suffers.

Gruber referenced something about this not so long ago - someone had written an article showing that historically companies that do this appear good in the short term, but in the long term it is a huge danger sign.

Hence the person to whom you were replying may have been aware of the "profits are up" song RIM has been singing for a while now, but not aware of the most recent results which indicate a rude awakening is imminent.



Pretty sure the piece you are referring to was by Michael Mace: http://mobileopportunity.blogspot.com/2010/10/whats-really-w...


Fantastic. Thanks for going to the trouble of finding and linking that. Much appreciated.




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