The problem continues for RIM and BlackBerry as well. The recent controversy over the security flaw with the once most popular Smartphone of the world is becoming costlier now for the Candian giant, RIM. 3 days back, we have told you that the controversy can affect the business of BlackBerry further. We have been proved correct with more news from Egypt, Indonesia, and Algeria considering the security issues related to BlackBerry operations. Reuter has reported that the Govt. there are reviewing the safety of BlackBerry and if required they may follow UAE & Saudi Arabia in blocking BlackBerry in their countries.
We like to remind you that apart from the Middle East, BlackBerry tasted a bitter shock from the French Govt. and European Union Commission who have decided not to use BlackBerry any more as their official communication device on the same security ground. The list goes lengthy with Standard Chartered, the British MNC bank, who took a similar step to replace BlackBerry for iPhone.
Indian Govt. is already in a reviewing process of the security loop holes of the device. Though it is yet to be correctly estimated the potential loss RIM is going to face, if BlackBerry is banned in India, Egypt, Algeria & Indonesia, but no doubt that the controversy is taking a toll on BlackBerry’s market share.
Shares of RIM has seen a dip of 4.46% on the Toronto Stock Exchange where as NASDAQ in New York has recorded a fall of 3.85% for RIM shares. Similar trend has been observed in London stock exchange too.
This year has been proved to be quite costly for RIM. When the device was facing a difficult hurdle from Apple’s iPhone and Google’s Android, the Security controversy, adverse reports against BlackBerry OS 6.0 & BlackBerry Torch have made it more difficult.
Engadget, a major tech product review site, has reported BlackBerry Torch to score 6/10 in their analysis. Eric Savitz, Wall Street tech guru, has recently said, “the new Smartphone has a slow processor, a small screen, and is not a game changer.”
In a nutshell, BlackBerry has quickly slipped away from the most popular PDA to 3rd place. Now, what does the whole episode mean for investors and BlackBerry app developers? It’s uncertainty. And what does business & stock markets hate most? Again, it’s uncertainty. Though it’s difficult to say at this point whether it would become a struggle for existence for RIM in near future; the BlackBerry app development industry should keep a close watch on the situation.