The value of shares of Research in Motion Ltd. (RIM) dropped by 21.5% following smartphone maker Blackberry’s announcement that quarterly revenue may drop and even declared plans to reduce jobs. RIM said on Thursday that revenue will be $4.2 billion to $4.8 billion in the fiscal second quarter.
According to a Bloomberg survey, the average analyst’s estimate of the sales was 5.47 billion dollars.
As Apple’s iPhones and handsets are using Google’s Android software, RIM is gradually losing market. Waterloo, Ontario based company RIM plunged to its lowest in September 2006 when it reached 27.75 dollars, falling by about 21.5%.
Paul Taylor, chief investment officer at BMO Harris Private Banking in Toronto said that the product portfolio of RIM is not up to the mark as compared to its key competitors and perhaps that is the reason of its downfall. In fact, its new PlayBook tablet was also criticized by technology columnists when they compared it with Apple’s iPad. Thus, the company has come under routine scrutiny after its stock value decreased substantially.