Research in Motion Adds Subscribers, Introduces New OS, Global Marketing Plan

Shares of Blackberry maker Research in Motion closed up +0.30 or +4.68 percent to $6.60 per share on Tuesday, after the company announced RIM had added two million new subscribers and introduced its new BB10 operating system to be released in early 2013. Furthermore, (RIMM: Charts, News) announced it would be releasing its new Blackberry 10 Smartphone line globally in the first quarter of 2013 to shore up its still strong but diminishing market position overseas.

RIM's Blackberry, which was a leader in the smartphone market, has lost considerable market share to Apple's (APPL: Charts, News) iPhone, and Google's (GOOG: Charts, News) Android lines of smartphones. Daily Chart
Waterloo, Ontario Canada based Research in Motion Limited, kicked off its Blackberry 10 Jam developer's conference, in which they demonstrated their new operating platform, the Blackberry 10. In the keynote address, Thorsten Heins, (RIMM: Charts, News)'s Chief Executive announced the company had added 2 million new subscribers to 80 million, since the company reported 78 million in late June. Research in Motion stock has felt the effects of the company's loss of market share to the iPhone and the Android. The price of the company's stock has tumbled from the mid 20's at this time last year, to its current price of $6.60. Nevertheless, the Blackberry continues to be extremely successful in emerging markets such as India, South Africa and the Pacific Rim nations. Sales for the Blackberry in the United States and Europe have declined considerably however, with the Blackberry's share of global smartphone sales dropping to 4.8 percent, versus 12 percent in 2011's second quarter. The new operating system, which was originally scheduled to be released this fall, has been delayed at least twice and the company has not given a specific date yet for its release, but that it will be shipping in early 2013. Research in Motion has been coping with its loss of market share by cutting over 5,000 jobs as part of a plan which will potentially save the company $1 billion this fiscal year. According to CEO Heins, "we now have the processing power of a laptop in the body of a mobile phone." The new BB10 OS allows the user to multi-task, toggling between applications on either a touch screen or on the more traditional keyboard layout. So far, investors have reacted favorably to the news, pushing (RIMM: Charts, News) stock up from new all-time lows. Research in Motion will be reporting earnings for its fiscal second quarter after the close of business on Thursday. The street is expecting the company to report a loss of -$0.45 per share on revenue of $2.5 billion, down 40 percent from the same period one year ago. With (RIMM: Charts, News) trading near all-time lows, a positive earnings report on Thursday could give cause for the stock to bounce. Nevertheless, with continuing pressure from its increasing competition, gains for Research in Motion stock could be limited. Other News About RIMM What RIM's latest results tell us: BlackBerry is a smouldering platform UK article on Research in Motion's last quarterly results. The latest RIM rumour: IBM is interested Rumors of possible takeover suitors for RIM, which drove the stock up last month. Other Stocks in the News IBM board elects CEO Virginia Rometty chairman Big Blue elects new Chairman. Lehman to pay creditors another $10.5 billion Second installment of a total of $65 billion to be paid out. Copyright 2012 by, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA, Inc.) or its employees responsible.

Published on Sep 26, 2012
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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