RIM cuts Q3 profit and revenue outlook

Canadian manufacturer RIM, the brains behind the BlackBerry device, has been hit by the economic slowdown.

In a surprise move, RIM has cut its third-quarter profit and revenue outlook to well below Wall Street expectations. The news saw the company's shares tumble 7%.

RIM has blamed slower subscriber growth and weaker margins.

Its Q3 revenue is now expected to be $2.75-$2.78 billion which is 9% below the average of analysts' forecasts.

"Product launch timing, general economic conditions and foreign exchange volatility have tempered our results in the third quarter", co-chief executive Jim Balsillie said in a statement.