Whatever optimism investors might have had that the firing of the co-CEOs who ruined Research In Motion (NASDAQ: RIMM) would cause a rally in the shares can forget it. RIM reached a multi-year low today, at $16.39
There are several reasons for the development.
The first is that Europe has been a traditional stronghold for the Blackberry. That has changed recently. New Forrester data shows that RIM’s EU share is now 26% among information workers. Google (NASDAQ: GOOG) Android based smartphones moved into first place with a 25% share. Apple’s (NASDAQ: AAPL) iPhone’s share was 24%.
The next reason is that RIM’s plan to get back on track as a major smartphone company is based on the migration of people with old Blackberries to the new Blackberry 7. RIM’s CEO Thorsten Heins said he found that 80% to 90% of US Blackberry users still use the Blackberry 5 or Blackberry 6. It is, however, likely that like other Blackberry users, once these people change their smartphones they will move to Apple or Android–if past behavior is an indication of future activity