Tech wrap: RIM profit tanks
Research In Motion quarterly adjusted net profit fell 47 percent to $419 million, on revenue of $4.2 billion, hurt by an aging lineup of BlackBerry smartphones that was only refreshed very late in the quarter and tepid sales of its PlayBook tablet. RIM shipped 10.6 million smartphones and 200,000 PlayBook tablet computers in the three months to August 27, sharply below the average estimate of analysts.
Fifteen Democratic lawmakers asked the Obama administration to approve AT&T’s proposed purchase of T-Mobile USA. Representative Heath Shuler and 14 other Democrats sent a letter to President Obama arguing that the deal would reduce joblessness and encourage investment.
A proposed update of the U.S. online privacy rule for children would revise definitions of personal information and beef up parental consent mechanisms to reflect technological changes. The Federal Trade Commission plan would modify its Children’s Online Privacy Protection Rule that gives parents a say over what information websites and other online providers can collect about children under the age of 13.
Bipartisan support is growing to allow private companies to quickly tap thousands of small investors through a strategy called “crowdfunding.” The Obama administration and Republican lawmakers have drafted legislation that would let investors take small stakes in private startups over the Internet, touting it as a way to supercharge job growth and innovation. The Securities and Exchange Commission is also considering revamping its offering rules, but is taking a cautious approach. It fears that loosening registration rules could open the door to fraud and weaken investor protections.