Shares of Research in Motion Ltd. dropped 21.5% to their lowest level since 2006 on Friday after the BlackBerry smartphone maker said quarterly revenue might drop for the first time in nine years and unveiled plans to reduce jobs.
Revenue will be $4.2 billion to $4.8 billion in the fiscal second quarter, RIM said Thursday. That was less than the average analyst estimate for sales of $5.47 billion, according to a Bloomberg survey. Profit this quarter will be 75 cents to $1.05 a share. Analysts had predicted $1.40.
RIM is losing market share in the U.S. to Apple Inc.'s iPhone and handsets running Google Inc.'s Android software, in part because it hasn't introduced a major new BlackBerry model since August. Cheaper Google phones are also making inroads in Latin America, Asia and Europe, threatening the popularity of less-expensive BlackBerry models like the Curve.
RIM, based in Waterloo, Ontario, plunged $7.58, or 21.5%, to $27.75, the lowest level since Sept. 12, 2006. The stock has dropped 52% this year.