BlackBerry Shares Drop

By: Zain Nabi  |   February 14th, 2013   |   Business, News, O Canada, Smartphones

BlackBerry shares continue to drop after the mega launch of its new Z10 and Q10 devices. On Wednesday, the company’s share value dropped by more than eight per cent and it closed at $14 on the Toronto Stock Exchange, according to David Friend of the Canadian Press, via the Chronicle Herald.

 

Investors all over the world are already very nervous when it comes to dealing with the technology sector. We recently saw Apple’s share declining significantly even though the company had registered massive profit in the fourth quarter. The main reason behind decline in Apple’s share value was said to be prediction for relatively slower growth in the current quarter.

 

In this case, witnessing a decline in BlackBerry’s share value is not surprising, but much of this is said to be BlackBerry’s own fault. The shares of the company previously known as Research in Motion reached new heights back in January this year before the launch of the new smartphone devices.

 

The launch of new devices is seen as an attempt from BlackBerry to regain its lost glory. The grand launch took place in six different cities of the world at the same time, but there were a few things that disappointed investors.

 

BlackBerry announced that its new smartphone devices would not hit all the markets at once. The new phone first reached in the UK, then in Canada and then in the UAE. It was announced on the launch day that the phone would reach the U.S. markets after a couple of months. This disappointed investors and the company’s shares started dropping on the same day. Many experts maintained that the decline was due to delay in reaching the U.S. markets.

 

BlackBerry has still not reached the U.S. markets, and many experts still believe that the share value is dropping for the very same reason. Moreover, there has not been some concrete information about BlackBerry’s new service revenue model, which is also discouraging for investors.

 

BlackBerry’s share has fallen to around 21 per cent since January, and it is hard to predict how the trend will shape in future. On its part, BlackBerry must ensure provision of the smartphone in the U.S. as soon as possible. Furthermore, it should also come out with a clear and detailed strategy about its service revenue model and earn trust of the investors.

 

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