Shares of Blackberry maker Research in Motion are on the verge of reaching a two year low after the company recalled 1,000 faulty PlayBook tablets.
Investors sent the share spiralling down to $42.61, just nine cents more than the August 2010 share price. If the share prices fall any lower they could easily hit their lowest point since March 2009, Reuters reports.
RIM’s shares have lost a quarter of their value this year alone, sending its market capitalisation to $22.2 billion.
The company was forced to recall 1,000 PlayBook tablets after it discovered an issue with the operating system. The tablet runs the the ONX operating system, which RIM acquired and has been planning to use throughout its entire BlackBerry smartphone line-up in the future.
The Canada based company has been struggling with the threat posed by Apple’s iPhone and Google’s Android platform to its BlackBerry smartphone line. In order to get back in the game, RIM had developed a new tablet device, which was launched a long delay.
Even with the delay to smooth over rough spots, early feedback on the tablet has not been great and the company only expects to sell 3 million PlayBooks this year, compared to the 15 million iPad units Apple is expected to sell.