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RIM Stocks Take a Hit Following PlayBook Recall

This past weekend RIM announced the recall of nearly 1,000 BlackBerry PlayBooks. The company cited a glitch with the software that was, in some cases, preventing the unit from properly loading software upon initial set-up. In wake of the news, the Waterloo-based Canadian company saw stocks fall sharply.

The Times of India reports that on Toronto Stock Exchange, RIM stock closed at $41.72, the lowest the company has traded at since 2006. On the Nasdaq, stock slipped to $42.61, dangerously close to the company’s two-year low of $42.53 in March 2009. To offer some perspective, RIM stock traded at $150 on Toronto Stock Exchange during its peak in June of 2008.

Since smartphones have become more than just an accessory for businessmen, RIM has largely failed to attracted the young, social users that are drawn to the iPhone and Google’s various Android devices. The tepid response to the BlackBerry PlayBook and RIM's other touchscreen devices, like the BlackBerry Storm, have left many wondering if RIM has what it takes to compete. The addition of support for Android apps is seen as a positive one, but analysts are still watching the company very closely.

"Usually product recalls don’t make it into the headlines when it’s less than about 100,000 devices," Tero Kuittinen, an analyst at MKM Partners LLC, told Bloomberg. "It shows that people are using a magnifying glass when looking at RIM."

Further Reading

Times of India: BlackBerry Stock Hits New Low

Tom's Guide: RIM Recalls 1,000 Fault BlackBerry PlayBooks