BlackBerry's total market value plunged by more than one-fourth on Friday after the smartphone maker reported dismal quarterly results, prompting ever-deeper skepticism about a long-promised turnaround.
BlackBerry, which has struggled to claw back market share from the likes of Apple Inc's iPhone, Samsung Electronics Co Ltd's Galaxy phones and other devices powered by Google Inc's Android operating system, reported a loss in the fiscal first quarter ended June 1, and sales of its make-or-break new line of devices were softer than expected.
The CEO of RIM, Thorsten Heins, has been speaking to German newspaper Die Welt ahead of the launch of BlackBerry 10 devices — due in Q1. Heins told the newspaper he has not ruled out licensing the new OS to other manufacturers. Asked whether RIM might not go down the licensing route, as Microsoft has with Windows Phone, he said (translated from German by Google Translate): “Before you licensed the software, you must show that the platform has a large potential. First we have to fulfill our promises. If such proof, a licensing is conceivable.”
Before today, it was known that Research in Motion had two BlackBerry 10 smartphones that it would launch sometime in 2013; one with a touchscreen-only design and one with RIM's physical QWERTY keyboard. Today, the company's chief marketing officer claimed that RIM has a lot more BlackBerry 10 device models it plans to sell.
RIM announcement of upcoming changes in services fees was a surprise to investors and thus caused the stock to drop, even as company revenues and cash continue to grow.
If there is one thing that investors hate more than nearly anything else it is a surprise. In fact, investors, and their joined-at-the-hip financial analysts apparently hate surprises even more than taxes, the Fiscal Cliff or boardroom fraud.
A U.S. federal agency has reneged on its plans to ditch the BlackBerry in favor of iPhones -- at least, to a degree -- after it announced that it would give Research in Motion's next-generation BlackBerry 10 platform a chance.
The U.S. Immigration and Customs Enforcement (ICE) agency recently said it would pull the plug on its contract with the beleaguered BlackBerry maker in favor of Apple's iPhone, due to its back-end management features and IT policy restrictions.