Research In Motion (RIM), the BlackBerry maker, faced up on Wednesday to the reality of slowing demand for its smartphones amid the economic turmoil and cut its third-quarter profit and revenue outlook.

Shares in the Canadian company fell by up to 7 per cent as it gave warning of weaker margins and lower than expected uptake of its new phones.

Consumer demand for high-end smartphones has been energised this year by the introduction of Apple's 3G iPhone. RIM, with its grip on the enterprise market, hit back with a series of launches, including the BlackBerry Bold and the touchscreen BlackBerry Storm, aimed more at consumers.

RIM said that it had enjoyed a record number of weekly net new subscribers in the final week of November after release of the Storm in the United States. The device has prompted queues at stores, but reviews have been mixed.

RIM said that it had “experienced particularly strong momentum in recent weeks”, which had continued into its fourth quarter, but it still revised down the expected number of net new BlackBerry subscriber accounts added in the quarter to about 2.6 million — 10 per cent below its previous forecast of 2.9 million. RIM said that it expected fiscal third-quarter revenue of between $2.75 billion and $2.78 billion — 9 per cent below the midpoint of analysts' forecasts.

Adjusted earnings are now expected to be 81 cents to 83 cents per share, compared with the 89 cents to 97 cents per share that the company had initially forecast for its third quarter, which ended on November 29. RIM shares reached a record high of nearly $150 in June, but have since plunged.

Geoff Blaber, an analyst at CCS Insight, said: “Profits are being impacted by exchange rates but the fact that subscriber additions and shipments both look set to fall below expectations is tangible evidence that the market is slowing considerably in Q4.”

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