Apple’s Verizon Deal Causes Major Drop in BlackBerry Prospects
June 30, 2010
(ChattahBox) – With the announcement that Apple is planning on releasing a phone compatible with the Verizon network, the projected sales of the BlackBerry dropped sharply, with future sales sure to be badly hurt by the new deal.
Research In Motion Ltd was likely upset when they learned that Bloomberg News had spoken to some anonymous sources that said that Apple and Verizon were looking to do business as soon as January.
Already, the BlackBerry has suffered under the release of Apple products, such as the iPad, and the iPhone 4. But this is devastating news to a company that has only expanded outside of the U.S. in the last few years.
RIM dropped $3.22 (61%), taking it to $49.75 after the report by the business source was published.
Because the BlackBerry is distributed with a deal with Verizon, it is obvious that the relationship the company has with the U.S.’s largest cellular provider is sure to sour.
Analyst Charles Wolf spoke to the New Delhi Chronicles, saying, ““It looks to me that about 10 percent of RIM’s sales are at risk from a Verizon iPhone.”