The shares of the BlackBerry maker Research In Motion (RIM) dropped by 20pc on June 29. The shares dropped after the company announced the delay in its new BlackBerry phone. RIM said that the BlackBerry 10 will be launched next year instead of this year.
The delay of the BlackBerry 10, which will be equipped with several features, came as a shock for the investors as the shares tumbled down to $1.76 or 19.3 to $7.36 in early trading on Wall Street. The new delay will now put a pressure on the company to cut the rates.
Moreover, RIM said yesterday that it will cut 5,000 jobs. The number is almost one third of the employees at the company which made name a fortune by selling BlackBerry devices to executives, lawyers and bankers who want to check their mail while on the move.
The dominance has since then crumbled from the competition with the market leader Apple’s iPhone and also the devices which use Google’s Android operating system. The company said that it has shipped 7.8 BlackBerry phones in the three months to the end of May compared with 14 m six months ago. Before the announcement of the delay the analysts said that the new BlackBerry phone would help the company to get back its market share.