RIM shares take a beating
Delay in BlackBerry 10, poor financial outlook strengthens calls for co-CEOs to step down
Research In Motion's shares were sent into a tailspin following a delay in the launch of its new BlackBerry devices and a lacklustre quarterly report, according to Reuters.
The announcement last week that the launch of BlackBerry smartphones, powered by its new QNX operating system, had been postponed for several months, renewed calls for RIM's co-CEOs Mike Lazaridis and Jim Balsillie to step down and renewed rumours that the Canadian tech giant is set to break up.
BlackBerry 10 is the name the company has given to the QNX phones, which RIM had initially expected to deliver in the first quarter on 2012.
The launch delay has resulted in several brokerage firms slashing their price targets and ratings on RIM shares, which sent the shares tumbling more than 12% on Friday.
According to Reuters, RIM has been counting on the new QNX operating system to make up ground lost to Apple's iPhone and iPad, and the slew of devices that use Google's Android software.
RIM also posted a gloomy outlook for earnings, as sales of BlackBerry 7 smartphones remained slow during the holiday shopping season, however, even if shipments hit the high-end of RIM's expectations during the holiday season, RIM will still post its first annual decline in its history.
The rash of bad news from the company in 2011 has forced RIMs shares to their lowest levels since 2004.
RIM shares slumped 11.2%to $13.44 on Friday afternoon on the Nasdaq.