Has Research in Motion Caught its Break?

Research in Motion (RIM), the Canadian firm that created Blackberry, has finally caught a break after months of getting bombarded by negative comments from analysts. As Thorstein Heins, the CEO of RIM, announces their newest product at the Blackberry convention in California, their shares rose about 6%. 

The reason behind the increase in price of shares was not only because of the new Blackberry 10 system that will be introduced next year, but also because of the new 2 million subscribers that the company captured in three months! This large increase came unexpected to investors hence why the increase of price in shares.

As we have learned in class, shares are basically a form of ownership given out to people who are willing to invest in the company. If the demand for a share of the company increases, the price would also increase for each unit. Therefore, if there’s a 6% increase in price of shares, then there mostly likely was an increase in demand for RIM. This is all good news for a company that was thought to be on the brink of extinction. The new Blackberry 10 operating system is truly the last stand for Rim.

Will RIM rise or fall?

Whether or not Blackberry dies within the market now depends on the success of this new operating system. What do you think? Will Blackberrys be a thing of the past?

Bibliography:

– News, CBC. “RIM Shares Rise on Surprise Customer Gains.” CBCnews. CBC/Radio Canada, 26 Sept. 2012. Web. 28 Sept. 2012. <http://www.cbc.ca/news/business/story/2012/09/26/rim-shares.html>.

– Rocha, Euan. “RIM shares rise more than five per cent as new Blackberry wins praise.” Www.vancouversun.com. Vancouver Sun, 26 Sept. 2012. Web. 28 Sept. 2012. <http://www.vancouversun.com/business/shares%20rise%20more%20than%20five%20cent%20Blackberry%20wins%20praise/7303382/story.html>.

– Paczkowski, John. “Well, Whaddya Know a RIM’s Subscriber Base Isn’€™t in Decline.”AllThingsD. All Things D, 26 Sept. 2012. Web. 28 Sept. 2012. <http://allthingsd.com/20120926/well-whaddya-know-rims-subscriber-base-isnt-in-decline/>.