RIM Stock Plummets After BlackBerry 10 Unveiling

Dennis Faas's picture

Canada's Research in Motion (RIM) finally unveiled its BlackBerry 10 mobile operating system (OS) on Wednesday. Unfortunately, the company's stock value plunged in the hours that followed, indicating that investors don't believe the new OS or a fresh range of smartphone devices can save the struggling firm.

RIM showed off BlackBerry 10 (BB10) in a highly-publicized event on Wednesday, January 30, 2013. The new mobile OS is specially designed with touchscreen devices in mind and reflects RIM's decision to enter market space previously dominated by Apple's iPhone and a wide range of Android-based devices.

RIM Now Known as Simply 'BlackBerry'

RIM also announced that it would be changing its corporate name to simply 'BlackBerry,' which is clearly an attempt by the Waterloo, Ontario-based firm to revive memories of the company's glory days.

On hand for reporters were a number of new smartphone devices running BB10, including the new Z10.

Some reviewers loved the handheld, with New York Times writer David Pogue calling the device "lovely, fast, and efficient." Pogue also noted that it's "bristling with fresh, useful ideas." (Source: cnbc.com)

Unfortunately, not everyone was so impressed with the event or RIM's new hardware and software offerings.

"The problem with the Z10 is that it doesn't necessarily do anything better than any of its competition," noted Verge writer Joshua Topolsky.

"No one could argue that there's a 'killer app' here. Something that makes you want or need this phone because it can do what no other phone can do. That's not the case." (Source: mercurynews.com)

Delays, Q10 Confusion Behind Doubts

It appears most experts agree with Topolsky rather than Pogue. BlackBerry shares dropped nearly 10 per cent in the hours following RIM's New York City event.

So, why is everyone so doubtful that RIM / BlackBerry can turn it around?

Part of the problem is that the firm -- whatever you want to call it -- took such a long time to unveil a mobile OS and a handful of smartphones that, at first glance, don't appear dramatically better than similar offerings from the competition.

Another problem: RIM hasn't publicly stated when consumers will be able to get their hands on the Q10, the first BB10-based smartphone featuring a QWERTY keyboard.

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