Sometime after the stock analysts raised the ratings for Research in motion, a new report indicating that the iconic BlackBerry brand just holds 1.6% of American smartphone market dropped the expectations for the firm. Market share for RIM slipped further in US; however, the biggest surprise was the slippage in Latin America and Europe.

One year ago, at the same time in the month of October, Kantar Worldpanel ComTech had reported that the estimated share of Blackberry was 8.5 percent.

It was pretty surprising that the market share of RIM had collapsed in United States. However, the company had lost Blackberry buyers in the European countries. In Britain, RIM is the largest market outside North America. Blackberry share has plummeted to 7.9% from 19%. In Spain, Blackberry went to 3.4% of the market from 23.7%.

Shares of RIM ended at US$10.72 on Tuesday, down by US$1.26 or 10.5%. On Wednesday noon’s trading session, they were at US$11.07, up by 35 cents or 3.3 %.

“We understand the competitive nature of this smartphone market and also need for innovation.” RIM spokeswoman, Amy McDowell said in an email; “We are confident enough that BlackBerry will provide an exciting alternative to all the competitors and the company is committed to regain the market share as soon as possible.

RIM is boasting about the success of BlackBerry in Latin America. Reports also show that the thrill was gone in Brazil. The estimated market share of BlackBerry is 2.7%, and it is down from 8.7%.

The good news from Kantar reports is that Worldpanel ComTech, owned by WPP has come from Germany. Coincidentally, it is the birth place of RIM’s president Thorsten Heins. Here, Blackberry accounted for 2.5% up from 1.6%.

Germany was an exception in the market covered by the report where the share from Apple declined despite iPhone 5 release. It fell to 17% from 22.1%.

In US, almost all iPhone models have accounted for 48.1% in the market, doubling the previous year’s 22.4 % share.

On the whole, Google’s Android operating system phones are proved as the popular alternative for BlackBerry owners. Many of the US customers have switched their phone brands in US in last 6 months.

Study researchers believe that many buyers are attracted by iPhone’s larger screen and its ability to use the best wireless networks, which is also known as LTE or 4G, but things may soon change.