updated 03:25 pm EDT, Mon October 20, 2008
Pac Crest on BlackBerry
Shares of Research in Motion plummeted Monday after a Pacific Crest report cautioned that the company's BlackBerry's sales would likely prove underwhelming. Calling the cellphone producer's likely results "slightly disappointing," the analyst group cautions that the Pearl Flip's sales have been at most average. The estimates if accurate are particularly damaging for RIM, which depends on the Pearl series for a large portion of its non-business sales.
RIM has also produced mixed results in early examinations of its sales over the course of the summer. Although one September study in the US hints at climbing BlackBerry sales during the month, NPD Group studies over the summer have the iPhone 3G taking the lead through the brunt of the summer and impacting RIM's influence.
Low stock value is considered a potential risk for the Canadian firm, which is rumored to have a standing offer for a possible Microsoft buyout should its share price fall below $50. RIM has regularly prided itself on remaining independent but has lost nearly two thirds of its share price since a record high of about $148 in June, making it more vulnerable and opening it to a possible takeover.