RIM announces $1.2 billion buyback after market value drops by a third

Research In Motion has announced a $1.2 billion stock buyback program after the manufacturer's stock price dropped 33 percent to $59.02 from $88.08 because of disappointing third-quarter financial results, MarketWatch reports.

In late September, the company posted results that fell below expectations. RIM earned $475.6 million in the third quarter, a four percent loss year-over-year, as we reported. Investors are worried that increasing competition from consumer smartphone platforms like iPhone, Android and webOS could hurt sales for the BlackBerry-maker.

RIM plans to purchase 21 million shares of stock, or 3.6 percent of its outstanding stock, in the next 12 months. [via mocoNews]