NEW Discuss: RIM Shares Hit New Eight-Year Low, But Why?
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Thread: Discuss: RIM Shares Hit New Eight-Year Low, But Why?

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    ice2921's Avatar
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    Discuss: RIM Shares Hit New Eight-Year Low, But Why?




    After one of the largest gatherings of BlackBerry fans and professionals, at BlackBerry World 2012, RIM's shares see a new 8yr low. One would have to be living under a rock to not to hear the news about RIM's new BB 10 OS, and its new Alpha device, but it seems as though not everyone excited about RIM's bold new moves. The company's share fell more that 15% in over the past few days, right after the revealing of the Alpha device. Why is that?

    The Wrong View

    For some reason every analyst and investor seems to think that the Alpha devices is RIM's next smartphone. Did they forget that RIM explicitly stated numerous times that the device was created for the purpose of testing BlackBerry 10 applications. That's it nothing more. It's not a phone, it's not a finished product, it does not run the final BlackBerry 10 software. The device was created to give developers, not consumers, time to get familiar with BB 10. It's a smart move, after all how are you going to develop for a platform you are not familiar with.

    The Big Picture

    It is important that RIM gets this device out to as many developers as possible if they want more high-quality apps to be made available on their next gen platform. If this device is to be a success they need to have apps and lots of them available immediately upon launch. The device needs to be ready to go from the start, and if that means a delay then so be it. Consumers want a finished product not a fiasco like the initial launch of the PlayBook.

    BB 10 will truly be an amazing platform, the key will be in the delivery. Strong and robust apps with extreme hardware is a must, dual core, a high-resolution screen, and lots of memory is something that simply can't be ignored.
    Last edited by ice2921; 05-04-2012 at 06:27 AM.




  2. #2
    lonedog is offline BlackBerryOS Friend
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    It's really sad to see the way analysts and investors are beating up RIM. This morning shares dropped below $12 for the first time that I can remember. Personally I was excited to see the previews of the new OS, and am really looking forward to BB10 when it finally comes out.

    I think many are used to seeing something physical, like new devices, at BlackBerry World, and RIM may have been playing up a bit too much the fact that the device they gave out to the developers at BBW was a development device that would never see the light of day to the general public and that what was on the device was not the final product of BBOS. Considering that RIM has said the first new BB10 device and OS will be available this fall, there's not a heck of a lot of time between now and then, so many may have come away from BBW believing that RIM is going to fail once again on their delivery promise. It's the same with the 4G LTE PlayBook Thorstein mentioned would be out by the end of this year. Once again no firm delivery date, and end of the year is later than they originally said it would be out (May, June of this year). Tack on the fact that BB10 is not backward compatible to old devices and you have a bunch of upset users who just went out and got a BB7 device in the last year who will have to fork out more big money just to get the next latest and greatest from RIM. Users are getting tired of having to replace their smartphones in such a short period of time while carriers lock you into a 3 year contract that means you have to fork out full high price or pay a hefty penalty fee just to get a new device.

    Yesterday there was a rumor that RIM was considering going private. While this may be good for the company in staving off the speculators, it's not as easy for a company that's not public to get investments, and those who already have shares in the company may be nervous about that.

    I really do hope that RIM will have a hit on its hands when BB10 comes out, but I fear that if it's not as great as it's promised to be, it'll be a death blow to the company.
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    ice2921's Avatar
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    Quote Originally Posted by lonedog View Post
    It's really sad to see the way analysts and investors are beating up RIM. This morning shares dropped below $12 for the first time that I can remember. Personally I was excited to see the previews of the new OS, and am really looking forward to BB10 when it finally comes out.

    I think many are used to seeing something physical, like new devices, at BlackBerry World, and RIM may have been playing up a bit too much the fact that the device they gave out to the developers at BBW was a development device that would never see the light of day to the general public and that what was on the device was not the final product of BBOS. Considering that RIM has said the first new BB10 device and OS will be available this fall, there's not a heck of a lot of time between now and then, so many may have come away from BBW believing that RIM is going to fail once again on their delivery promise. It's the same with the 4G LTE PlayBook Thorstein mentioned would be out by the end of this year. Once again no firm delivery date, and end of the year is later than they originally said it would be out (May, June of this year). Tack on the fact that BB10 is not backward compatible to old devices and you have a bunch of upset users who just went out and got a BB7 device in the last year who will have to fork out more big money just to get the next latest and greatest from RIM. Users are getting tired of having to replace their smartphones in such a short period of time while carriers lock you into a 3 year contract that means you have to fork out full high price or pay a hefty penalty fee just to get a new device.

    Yesterday there was a rumor that RIM was considering going private. While this may be good for the company in staving off the speculators, it's not as easy for a company that's not public to get investments, and those who already have shares in the company may be nervous about that.

    I really do hope that RIM will have a hit on its hands when BB10 comes out, but I fear that if it's not as great as it's promised to be, it'll be a death blow to the company.
    I agree and that rumor about RIM going private was partially true as, they did at one time consider it. According to sources at Bloomberg they actually met with some financial advisers regarding the issue, but neither side could come to an agreement. This was done before Thorton cam on board.

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    March is offline BlackBerryOS Noobie
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    I think the decline in share price had to do with comscore market share report which showed rim down 3.7% from Dec to march. I can't understand how they are losing so quickly when apparently they are growing in markets outside the us. Also investors were probably hoping a white Knight may have emerged as a partner and announced at bbjam. There are several reports of rim hiring investment bankers to facilitate something but it has never been clarified. I would hope for shareholders sake that they do a deal with someone to reinvigorate the share price and the prospects of success. Every market and tech media alike have a hate for rim that is sickening. They need to show the market some clear and decisive action and surprise to the upside to get the ball rolling again.

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    Now's the time to buy stock.

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    Media Shareholders

    There's another probable reason why the media mercilessly bashes RIM, they may own large stock portfolios heavily populated with Apple and/or Google shares. If that's indeed the case their actions may be more out of protecting their investments rather than an actual dislike for RIM...just a thought.

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    Quote Originally Posted by DonMariano View Post
    There's another probable reason why the media mercilessly bashes RIM, they may own large stock portfolios heavily populated with Apple and/or Google shares. If that's indeed the case their actions may be more out of protecting their investments rather than an actual dislike for RIM...just a thought.
    Good point it really comes down to money and not a fanboy relationship.

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    Quote Originally Posted by Joe Jerde View Post
    Now's the time to buy stock.
    If only I had some spare money. Hey Joe, buy me 1,000 shares and I'll pay you back when they double.?...
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