Research in Motion investors were far from impressed by stronger than expected new subscriptions. Their thumbs were busy selling shares in the BlackBerry maker on disappointing earnings guidance.

Shares in Research in Motion (nasdaq: RIMM - news - people ) lost $8.28, or 14.5%, to close at $48.76, on Wednesday, after the company forecast fiscal fourth-quarter earnings that were at the low end of Wall Street’s prior expectations.
 

The Waterloo, Ontario-based smartphone maker said it is logging healthy sales to new subscribers of its latest models, such as the touchscreen Storm and high-end Bold, but existing customers, mainly businesses, were not upgrading as frequently as expected as consumers scale back on spending amid a weakening economy. (See "Research In Slow Motion.")

That is eroding its profit margins, partly because the high-end new handsets that are selling well cost more to make. RIM said it expects gross margins to slip from 45.6% in the third quarter to the low end of previous projections of 40% to 41%.

"You probably see big financial institutions cutting costs ... and the consumer is just not getting a new handset," said Atlantic Equities analyst James Cordwell. “It just shows they're not immune to the economic slowdown like anybody else."

The company said it expects net subscriber account additions to be 20.0% higher in the current quarter, which ends Feb. 28, than the 2.9 million additions it forecast on Dec. 18. Earnings per share will come in at the low end of its forecast range of 83 cents to 91 cents, and revenue will be at or near the mid-point of $3.3 billion and $3.5 billion. When RIM outlined guidance in December, it was above Wall Street’s estimates, but analysts have since increased their expectations, pushing RIM’s stock up 48.4% between Dec. 18 and Tuesday’s close.

Based on Wednesday’s announcement, RIM could miss analyst estimates for 86 cents per share in the current quarter. The company is expected to report quarterly earnings on April 2.

The Internet-based video-content provider announced a partnership with South Korea's LG Electronics (other-otc: LGERF - news - people ) to Monday to offer high-definition TV sets that stream Netflix (nasdaq: NFLX - news - people ) videos directly from the Internet without an additional device.

That additional device would be something like a TiVo (nasdaq: TIVO - news - people ) set. Monday's announcement comes a few months after Netflix announced in October that TiVo subscribers will be able to instantly download Netflix videos free of charge. (See "Full-Stream Ahead For Netflix, TiVo.")

Prior to that, Netflix announced a deal with Microsoft (nasdaq: MSFT - news - people ) to stream video through the firm's Xbox 360 gaming console. (See "Xbox + Netflix: Who's Next?")

Netflix has come along way from renting out DVDs through the mail. Though offering less content than its DVD service, the company has also developed a popular online streaming service.

The Internet streaming service will become increasingly prevalent as the distinction between a computer monitor and television set blurs. It should also save the company money, as it could lead to a drop in requests for DVDs, and with it postage costs. (See: "Netflix's New Tricks.")

Netflix isn't alone. On Monday Amazon.com (nasdaq: AMZN - news - people ) said it is making its video streaming service available on the Roku Digital Video Player, which also streams Netflix's content from the Internet to television sets.

In any case, shares of Netflix rose 4.4%, or $1.32, to $31.19, in afternoon trading. Investors are confident in the firm. Though the last 12 months have been rocky, the stock has seen a gain of 27.0%, while the S&P 500 index has lost 33.9% over the same period.

Tim Alessi, director of product development for LG Electronics USA, said the broadband TVs will sell for roughly $200 to $300 more than a regular high-definition television set.

Until now, the leading contenders for the title of coolest smartphone were Apple’s iPhone, Research In Motion’s BlackBerry and Google’s G1.

On Tuesday, Nokia (nyse: NOK - news - people ) enters the race with the N97.

The sleek handset, which pairs a large touchscreen with a full Qwerty keyboard, may be the Finnish company’s boldest yet. There’s a tilting touchscreen display, which rests on a kickstand-like hinge. A customizable home screen that can be personalized with widgets. And a group of Internet applications that let users toggle between e-mail, instant messaging programs, maps, photos, music and videos. Nokia is calling it “the world’s most advanced personal computer.” It will go on sale in the first half of 2009 for around $700. No carriers have been announced yet.

The company’s broader vision, which it plans to outline Tuesday at its annual Nokia World conference, is to create devices, software and services that promote a personalized version of the Internet. The “personal Internet” will know who users are, what they are doing and where at any given moment, says Bill Plummer, a vice president with Nokia Americas. This information could be made public or restricted to friends and family, he adds.

Nokia is also continuing to refashion itself as an Internet services firm with the launch of two Web applications under its Ovi brand. Maps on Ovi is an update of Nokia’s current mapping service, complete with weather forecasts and 3D images of landmarks around the world. Travelers can plan trips in advance on a regular computer and upload the maps to a mobile device as well as save and share routes. The other new application, Nokia Messaging, will let users manage their e-mail and instant messaging accounts from one menu.

The real headliner, of course, is the N97. Though Nokia already rules the global handset market, with an estimated 1 billion people currently using its devices, it could use a touchscreen hit. It unveiled its first touch handset, the 5800 XpressMusic, in early October, more than a year after the iPhone debuted.

During the 5800 launch, Nokia carefully sidestepped comparisons to the iPhone. This time around, it’s welcoming them. At a pre-launch event in New York, Plummer noted that the N97 supports Flash and Flash video, enabling “real Internet browsing--unlike some phones”--a not-so-veiled jab at the iPhone.