Many exchange-traded funds with Research in Motion, now BlackBerry (NASDAQ:RIMM), among their top holdings failed to get a significant boost last week as the struggling Canadian smartphone maker unveiled two versions of its delayed BlackBerry 10 phone.
Shares of Research in Motion hit an intraday high minutes before the unveiling got underway on Wednesday but quickly dipped into the red once the phones were announced. The shares continued to fall last week, down nearly 17% since the Blackberry 10 debut, but were up sharply on Monday. RIMM hit a 52-week high last week and shares have nearly tripled since dropping to a low in September.
First Trust Canada AlphaDEX (NYSE:FCAN) fell nearly a half a percent following the launch. The fund has a 6% weighing in Research in Motion. IShares S&P North Amer Tech-Multimd Ntwk IGN has a 4.23% weighing in Research in Motion. IGN fell 1.42% on Wednesday.
The two BlackBerry 10 versions are the Z10 and Q10. The z10 model is a touch screen device while the Q10 has a full keyboard.
So why did the two versions of the new phone failing to spark a surge in the stock? Investors and analysts seem to be disappointed by the features and timing of the new device.
“The bad news is it’s a brand new platform and it’s not available for sale in the United States until March,” Colin Gillis, BGC Partners Analyst told FOX Business. “There will be a certain number of people who will want this new phone; but the company needs to reach a certain volume of units to make a nice profitable business and this phone will not get them there.”
And the company has a lot of making up to do. A report by the research firm IDC shows Samsung and Apple (NASDAQ:AAPL) account for 30.3% and 19.1% of the 2012 market share, respectively, while Research in Motion only accounts for 4.6%.
Research in Motion is expected to roll out a brand new marketing campaign in a last ditch effort to lure consumers. Chief Executive Thorsten Heins also announced the company changed its name to BlackBerry, and the stock began trading under its new name Monday.