Research in Motion surges 10% while Apple tanksJanuary 14, 2013: 12:38 PM ET
Oh, how the tables have turned in the smartphone world ... at least when it comes to stocks.
Apple shares continued to take a tumble, while shares of Research in Motion rallied again. Traders on StockTwits could barely contain themselves.
Apple shares fell after reports, citing unnamed sources, indicated the company had cut orders for certain iPhone 5 components due to weaker-than-expected demand for the device.
Shares of Apple have been under pressure since the stock hit an all time high above $700 a share in September, when the iPhone 5 came out.
While the company has predicted record sales for its most recent quarter, Apple has been facing increased competition from rival smartphone makers such as Samsung, Nokia (NOK), HTC and LG.
RIM could be a viable new threat soon as well. It is set to release its new BlackBerry 10 operating system and two new smartphones on Jan. 30. That would be a year behind schedule, but it's better late than never, right?
A pioneer of smartphone technology, RIM has seen its share of the market decimated by Apple's iPhone. The stock has been pummeled during the past few years due to concerns that the company could eventually go out of business if it does not turn its fortunes around.
But investors now appear wiling to bet that new Blackberry devices could help to stabilize RIM.
Fundamentally its seems that $AAPL sales have peaked short term, while HOPE that BB10 will boost $RIMM shares aided the recovery.
Some investors were encouraged by the growing number of apps for the new Blackberry, an area where it has struggled to match Apple.
But Apple purists -- and presumably Blackberry haters -- weren't buying it though. One trader said the rally Monday was driven by investors covering short positions in RIM stock.