I was thinking about buying a few shares of RIM a few months ago when the stock seemed like it was at a bargain at $95. Considering it’s trading at $37 at the moment, I’m glad I didn’t. The maker of the popular BlackBerry mobile devices late on Tuesday reduced its outlook for its fiscal third quarter, which ended on Saturday. RIM isn’t the only one expecting weaker sales; Nokia and Palm both expect to sell fewer handsets than expected.
RIM launched its new touch screen device, the BlackBerry Storm, two weeks ago exclusively on Verizon Wireless’s network in the United States. RIM is claiming that it signed up a record number of new customers the day this iPhone competitor hit store shelves in the United States. Yes, there were lines outside several Verizon Wireless stores for the Storm, but the hype for the Storm didn’t come close to that surrounding the launches of the iPhone, which was recently crowned the most popular phone in the U.S. market and the second most popular smartphone worldwide.
Even so, RIM remains optimistic believing that the BlackBerry Storm will continue to sell into the fourth quarter. Executives claim that the other new BlackBerry models, such as the Bold and Pearl/Pearl Flip, should also help spur growth. Although, I’m a little discouraged with my new Pearl Flip that replaced my original Pearl. The Pearl Flip can’t keep up with my typing; I find myself impatiently waiting for the letters to turn up on the screen while I type. I’m hearing similar complaints about the BlackBerry Storm. Stay positive, RIM.