September 16, 2011- The manufacturer of Blackberry, Research In Motion (RIM), is reeling as it sees its market share in the smartphone market shrink even faster than originally predicted. On Thursday, RIM announced a weak outlook. This was just further indication that RIM was losing more market share to Google and Apple. In Europe, shares of RIM were down more than 20%.
RIM posted on Thursday a sharp decline in its quarterly profit and announced its current quarter was dismal as well. They readjusted their outlook saying they will probably only reach the lower end of the full-year outlook that has already been reduced.
One European analyst said that RIM’s share in North America continues to shrink and is now spreading in overseas markets, as there are now signs in the UK of market share shrinkage. The low quarterly numbers combined with the bleak projection for the last quarter is further proof of how the one-time leader of corporate communication has lost favor with investors and consumers.
Analysts believe there is more than just the loss of market share causing problems in the company. They say the company executives have not been able to see that its PlayBook is a failure. The analysts made note of the fact that shipments of the Playbook dropped from 500,000 to 200,000 in just one month.