Slowdown to hit BlackBerry sales

BlackBerry-addicted bankers in the City and New York are expected to curb their addictions to the electronic devices amid the growing economic gloom.

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.