RIM stock sinks, despite a profit jump of 20%

RIM’s stock dropped 5% in early trading this morning despite having announced a 20% increase in profit after the May quarter ended. The stock dropped after investors reacted to lower-than-expected sales and handset shipments. The latest results are suspected to be a result of new handheld companies eating into RIM’s smartphone market. The tough competition from Apple’s new iPhone and Google Andriod software has led to an almost 30% decline of RIM’s stock in the past three months. However, RIM does intend to fight back (it will announce new software and handsets late this summer) and forecasts continuing growth.

MarketWatch