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Investors lose faith in RIM, shares drop to 8 year low

Shares in Research In Motion dropped to an 8 year low yesterday. This was fueled by a demo of the new BlackBerry 10 Operating system this week, which has failed to inspire investors.

Research In Motion have had a very tough 12 months, facing a growing challenge in the smartphone market. They have a lot riding on their upcoming BlackBerry 10 operating system, but it has failed to reassure analysts and investors. They showed the OS at the annual Blackberry World showcase however it has received negative feedback and many think it won’t be the magic cure to their problems.

Apple and Google continue to strengthen their market share in the smartphone arena and Research In Motion have planned to claim it back with their new software. Shaw Wu analyst with Sterne Agee said “While we believe RIM is making some progress, we are unsure if BB10 will be enough to slow down strong iPhone and Android momentum.”

Stock in Research In Motion has declined more than 70 percent in the last year, and it fell a further 15 percent this week alone. This certainly bodes well for RIM, especially as they held this event specifically for analysts, developers and investors to boost faith in the company.

Another analyst, Brian Blair, with Wedge Partners added “We don’t see any scenario where BB10 can compete meaningfully against the three major smartphone operating systems: iOS, Android, and Windows Phone.

Our longer term view is that RIM will be forced to focus on the low-end, emerging market opportunity, as we believe that segment remains the only jump ball the company and its products will be able to grasp.”

Kitguru says: Tough times indeed for RIM. They are searching for a light at the end of the tunnel.

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