RIM Is Still All About BB10
Jacob is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Research in Motion (NASDAQ: BBRY) has been on a spectacular run this quarter. With transformed positivity on Blackberry 10, a reasonable upgrade from Goldman and high short interest, it seems that all the fresh encouraging news has been priced in at current levels. However, for RIM to efficaciously hold some ground in the smartphone market, the Blackberry 10 will need to take market share away from the likes of Apple's iPhone and Google's Android devices -- which will not be released before January. Therefore, RIM is defenseless to a sell-off unless earnings expressively exceed traders' expectations.
Lagging Behind Competitors
Companies such as Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG), Samsung Electronics and others, have ushered in a new generation of the mobile market. And in the course, they’ve made RIM look like the also-ran, and a company that simply has no idea what to do to appeal to customers. RIM launched QWERTY keyboards and believed it to be the best, but Apple’s touch screens had become the necessity for the customers now. RIM now offers touchscreen, but it is a latecomer.
RIM is the only company trying hard to take on Android, iOS, and Windows, but the strategy of RIM has so far been unimpressive and a massive failure.
The enterprise service of RIM and messaging service has been top notch. The competitors rather than competing with RIM on its services are concentrating on the devices.
The operating software of Blackberry has not changed much over time and lacks innovativeness. On the contrary, the competitor’s iOS and Android have made tremendous changes that deliver better and new functions much admired by customers.
In 2008, when Apple and Google launched their App store, it became quite clear that software would become the key to their success. RIM also realizing the importance of Apps launched its own app store, but it heavily lacked the applications compared to around 7,000,000 apps of Apple and Android. The developers are not concerned as well, which seems to be the real issue.
Consumers Inclined Towards Latest Device
Wireless consumer survey highlighted that 43% of consumers would go for a windows phone such as the Lumia, and only 16% said that they will prefer the iPhone or Android. This exhibits the interest of consumers to try a platform other than Android and iOS. The BB10 phones will unveil with about 100,000 apps. While this doesn't match with the over 7,000,000 apps each for Android and iPhone, and 150,000 for Windows Phone. Windows Phone 7 launched with 1,600 apps in 2010 and the iPhone launched with 500 in 2007.
BB10 Devices a Savior?
Details of BB10 are being trickled by carriers and developers alike. True multi-tasking with messaging and apps, one thumb navigation, swipe to type keyboard, improved speedy browser, competitive hardware, and 100,000 BB10 applications available on launch day are all encouraging to the “Productivity” and “Flow” vision RIM is looking to endorse itself as, this should re-launch Blackberry fan support. Initial feedback has been mostly affirmative. The early assessments of BB10 devices are durable enough to keep and grow the current subscriber base. The first two phones on BB10 are expected to be the touch screen L-Series and the QWERTY N-Series. Based on initial speculations, with these devices RIM gives the impression to finally be focusing on the foremost superiority hardware performance that was absent from its prior generations.
BB10- Moderate Shot in the Arm
For RIM, industry experts and customers similarly have grieved that the company is worth more dead than alive. Despite, upcoming arrival of the company's BlackBerry 10 operating system and a little encouragement that it could give to RIM, there's something that can't be overlooked: the point that most customers don't look upon a BlackBerry device with any form of enthusiasm.
The company just secured a win in an important security certification, which enables it to market the Blackberry 10 to government agencies in the U.S. This is the first time ever that a device has been certified before its launch. According to Michael K. Brown, the vice president of security product management and research, no other mobile platform has achieved the level of security offered by the new Blackberry 10 platform. If the Blackberry 10 is able to create a niche for itself on the launch, then those who got in early could be rewarded well. Even IDC is expecting the mobile enterprise security market to perform better from 2012-2016.
As RIM is the overriding player in this field it could recuperate a significant portion of the corporate customers it has lost with the launch of Blackberry 10. Considering all the aspects, Investors should follow a wait and watch approach, up till the launch and initial feedback for BB10.
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