RIM stock sinks, despite a profit jump of 20%

Sales and handset shipments were smaller than Wall Street's forecast

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.