Research in Motion (RIM), the makers of the once popular BlackBerry smartphone, have seen a dismal 12 months as the stock price of the firm dropped 80 percent. This slide was further exasperated when the company warned that it could show another operating loss this quarter and had employed outside consultants and bankers for a strategic review. This news triggered the drop of shares in after-market trade and they fell another 13 percent. This nose dive let a halt in trading of the share because of the steep decline.
The latest bad news comes only a few days after news of RIMs large job cuts hit media outlets. RIM has hired JPMorgan Securities and RBC Capital Markets to assess the business in its current state and help figure out a future path. Many consider this move as an exercise in salvaging what is left of the once dominant brand. The last few years have seen the iconic smartphone maker lose tremendous market share to Apple and Google. The iPhone and Android powered mobile devices have grabbed nearly 82 percent of the smart phone market, leaving BlackBerry in the dust.
Some analysts believe that the strategic review is nothing but a setup for the company sell off its assets which include a large cash hoard, technology patents and money coming in from RIM’s enterprise software.
The exact details on what will happen at the Canadian firm are not part of the public domain. However, RIM has stated that it plans to continue investing in the new BlackBerry 10 platform by hiring the right talent also increase the number of Apps available for the device. The small number of apps, when compared to Android and iPhone, has been one of the major drawbacks in customer’s eyes about the BlackBerry. The one strong point that could yet save the device maker is the high level of security available on Black Berry phones which makes it appealing to many organizations around the globe.