Christopher Hunter's Blog

After months of facing falling prices in stocks and negative comments by analysts, RIM’s shares have finally risen after the announcement of their new line of smartphones. Investors reacted positively after Thorstein Heins, RIM’s CEO, announced its new line of smartphones and their shares jumped more than 5% as a result.

The increase in the price of shares have also come from an increasing user base. In the last quarter, RIM’s user base increased from 78 million to 80 million. This comes as a surprise to many analysts, who expected RIM to start losing subscribers. This increase in user base was another factor in the aforementioned rise in the price of shares.

Although RIM is yet to have fully presented their new line of smartphones to the public, they have showcased some of the new line’s features. In particular, they have demonstrated a new feature that allows the user to check all communications from a central app, rather than having to access several smaller apps. These new features excite the blackberry community and increase the demand for the product, which in turn causes the price in their share to rise.

Watching RIM’s future will be interesting. Depending on the popularity of their new products, they could regain their title as one of the leading brands of smartphones. However, the potential failure of this line could be detrimental to the price of the company’s shares.

Sources:

http://www.theglobeandmail.com/globe-investor/rim-shares-rise-on-new-phone-hopes/article4567392/

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