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RIM stock plunges after US$518M loss and BlackBerry 10 delay

Matt Hamblen | July 2, 2012
Research in Motion's stock price plunged 19% early Friday following RIM's announcement late yesterday of a $518 million first quarter loss and that its BlackBerry 10 smartphone has been further delayed.

Llamas also said that RIM should make moves to halt the departures of top executives while focusing on boosting its business in emerging markets like Brazil, India, Indonesia, the Middle East and Africa "where a lot of people are looking to upgrade their BlackBerry phones."

Gold said that aside from the dismal -- and expected -- financial news, "the real bad news is that RIM is slipping BlackBerry 10 shipments into next year. [That] means they will miss both the back-to-school and holiday selling seasons."

At the same time, Gold noted that Windows Phone 8 and iOS 6 are expected to launch in coming months.

"I don't know how long the installed base of users will wait for RIM to get Blackberry 10 out. I suspect many will jump ship for another OS in the next six months, having been disappointed by the delay," Gold added.


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