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Despite Strong Performane on Trading Floor, RIM Still in Jeopardy

Despite gaining a sharp increase in its stock value, the future of Blackberry-maker Research in Motion remains uncertain and could be potentially disastrous in the coming months if its Blackberry 10 fails to generate interest in a smartphone market dominated by Samsung and Apple.

Research in Motion posted strong figures on the trading floor after its shares jumped by 26 percent this week.

RIM started trading at $8.29 on Monday but its stocks surprisingly surged over the next four days, closing a profitable week at $11.76 per share.

Nevertheless, despite an upbeat performance on the stock market, many analysts still predict doomsday coming for Research in Motion, who recently lost several big government contracts.

According to a reliable insider at National Bank Financial, Blackberry is expected to ship around 33.5 million of Blackberry 10 in the first quarter of 2013.

Blackberry, who will reportedly feature more sophisticated operating system and introduce touch capability for the first time, is tabbed as RIM’s last hope to turn things around.

Market analysts Kris Thompson said there’s a reason behind RIM’s surge in the stock market and the Blackberry 10 is certainly one of them. She added that investors have increasingly become ‘bullish’ on RIM’s objective of winning back customer with its next generation smartphone.

In an interview with CNET.com last week, RIM CEO Thorsten Heins put more hype surrounding Blackberry 10, calling it in a whole new platform from Apple’s iPhone and Samsung’s Galaxy Note.

“No, it’s much more than that. BlackBerry 10 is a whole new platform. That’s why we had to make the serious decision two years ago whether we join an open-source code platform or whether we build our own. QNX is a great OS, but it’s just the OS underneath,” said Heins.

However, Blackberry has rapidly been losing money over the last three years with the first and second quarter taking a sharp of nosedive.

RIM’s first quarter report over the last three years

 

FY Q1 2011: $5.6B revenue, $769M income

FY Q1 2012: $4.9B revenue, 695M income

FY Q1 2013: $2.8B revenue, -$518M income

 

RIM’s second quarter report over the last three years

FY Q2 2011: $4.6B revenue, $797M income

FY Q2 2012: $4.2B revenue, 329M income

FY Q2 2013: $2.9B revenue, -$235M income

 

No one needs here to become a rocket scientist to come up with an equation that suggests RIM is in a total trouble.