Nov
5
RIM: Comeback??
Posted by: Kevin Yu | November 5, 2012 | Leave a Comment
Since its peak in 2008, the share price of RIM(Research in Motion) has tumbled down to 5% of its original value. Many analyst concur on the fact that the reason RIM’s stock price diminished so dramatically reflected its inability to adapt quickly to the rapidly-changing smart phone market, which in current days, is dominated by Google & Apple Software. Its share in the mobile phone industry has also declined; as Alexei notes it, “Research In Motion Ltd.’s BlackBerry operating system had 7.7 per cent share in the third quarter, compared with 9.5 per cent a year earlier.” This percentages could be directly contrasted with Android’s share of the market, which rose “from 57.5 per cent in the year-ago period” to 75% current and Apple’s share of the market, which “increased to 14.9 per cent during the third quarter, from 13.8 per cent a year earlier.” Nevertheless, the time has finally arrived for RIM to regain its position in the market as major competitor as they recently announced having “entered lab testing with 50 wireless carriers around the world” for the 2013 launch of BlackBerry 10.
This news had gained many optimistic reviews by the analyst and onto RIM’s shareholders, as depicted by a “The stock [price] ending the day at $8.68 in Toronto, up 80 cents – its highest closing level in more than four months.” The announcement significantly decreased the level of anxiety of BlackBerry users who remained pessimistic for several months due to the consistent delay. As Richard Tse denotes, “they have a shot – something I couldn’t have said six months ago.” Many positive outlook on RIM’s future may serve to gradually increase the company’s share prices until the first quarter of 2013, when BlackBerry 10 is released; consequently, it would be interesting to follow RIM’s business progress for the next several months
https://www.youtube.com/watch?v=mmND2-fkUD0&feature=plcp
Source Cited
Marlow, Iain. “The Globe and Mail.” The Globe and Mail. N.p., 1 Nov. 2012. Web. 05 Nov. 2012. <http://www.theglobeandmail.com/globe-investor/rim-shares-rise-as-new-phones-enter-testing/article4843753/>.
ORESKOVIC, ALEXEI. “The Globe and Mail.” The Globe and Mail. N.p., 2 Nov. 2012. Web. 05 Nov. 2012. <http://www.theglobeandmail.com/report-on-business/international-business/us-business/googles-android-software-in-3-out-of-4-smartphones/article4892360/>.
Photo Credit
“RIMì ëìë ì¶ë½.” ë´ì¤. N.p., 29 June 2012. Web. 05 Nov. 2012. <http://dizin.co.kr/201248>.
Video Credit
Blackberry. “Official BlackBerry Channel.” YouTube. YouTube, 25 Sept. 2012. Web. 05 Nov. 2012. <https://www.youtube.com/user/blackberry?v=mmND2-fkUD0>.