New BlackBerry App Store Announced, Stock Slides (RIMM)
Research in Motion (NASDAQ: RIMM) announced a revamped version of its BlackBerry Application Store Friday, but investors continued to pound the stock. Shares declined 3.4%, to close at $48.71.
The latest version of BlackBerry App World is out of beta and will allow developers to offer applications for $0.99 and $1.99. Research in Motion is hoping to benefit from a model that has been tremendously profitable for competitor Apple's (NASDAQ: AAPL) iPhone and iPod.
Markets didn't appear to be impressed with the announcement, however, as today's slide indicates. Shareholders have taken a beating recently, as the company fends off threats from various nations to shut down BlackBerry service. India and Saudi Arabia, among others, have expressed national security concerns over BlackBerry Messaging and e-mail.
Research in Motion, to its credit, has handled the situation carefully. Clearly cognizant of user privacy issues, management has made an effort to create a solution with anxious government officials.
Investors aren't swayed, however. Trading at $73 a share in April, the stock has now entered sub-$50 territory. The question remains whether markets show confidence in the company in the near-term.
