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Friday marked the fifth anniversary of the launch of the original iPhone. Apple Inc. (NASDAQ:AAPL) co-founder Steve Jobs unveiled the smartphone at the Macworld 2007 convention in San Francisco. By June 29, 2007, it was available in the United States. It has been an amazing run so far for the iPhone, generating an estimated $150 billion in cumulative sales worldwide. However, perhaps the most impressive aspect of the Apple device is the anniversary gift it received last night, a bruised and broken Blackberry.
An apple a day keeps a profitable Research in Motion (NASDAQ:RIMM) away. After the closing bell on Thursday, the BlackBerry maker reported horrendous financial results. Revenue plunged 43 percent to $2.81 billion. For the first-quarter, the company posted an adjusted loss of $192 million (37 cents per share), down sharply from a net gain of $695 million ($1.33 per share) a year earlier. It was a miss on the top and bottom line, as analysts had expected a quarterly loss of only 3 cents per share on $3.10 billion in revenue.
“Our first-quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January. I am not satisfied with these results and continue to work aggressively with all areas of the organization and the Board to implement meaningful changes to address the challenges, including a thoughtful realignment of resources and honing focus within the Company on areas that have the greatest opportunities,” said Thorsten Heins, President and CEO.
A realignment of resources includes taking the Hewlett-Packard (NYSE:HPQ) and Dell Inc. (NASDAQ:DELL) approach,reducing staff. Research in Motion said it would cut 5,000 jobs in an effort to tread water even longer. Making matters even worse, the company postponed the launch of its new smartphone, the BlackBerry 10 to the first-quarter of next year. The device has already been delayed several times before and is seen as the company’s hail mary pass at survival.
“Over the past several weeks, RIM’s software development teams have made major progress in the development of key features for the BlackBerry 10 platform,” Heins said in a statement. “However, the integration of these features and the associated large volume of code into the platform has proven to be more time consuming than anticipated.”
Shares of RIM performed as well as anyone could have expected. Friday, RIM’s stock price plunged more than 19 percent to hit a fresh multi-year low of $7.34 per share. Meanwhile on Friday, shares of Apple closed up over 2 percent at $584 per share. The Apple-induced demise of the once smartphone leader has been in the making for years. Since 2007, shares of RIM have declined nearly 90 percent. On the positive, RIM may finally reach a bottom near $4, its estimated cash value per share. Happy Anniversary Apple!
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