BlackBerry maker Research in Motion begins its comeback bid Wednesday with a new platform launch in a make-or-break move for a firm that is rapidly sinking in the smartphone market it once dominated.
The Canada-based company unveils its BlackBerry 10 operating system and handsets in what some see as its last, best chance to remain a major player in an already competitive sector that is nevertheless attracting new entrants.
RIM boomed as the maker of "crackberries," a nickname stemming from the addiction the phones engendered, but it risks becoming a footnote in a market led by Apple's iPhone and rivals who use Google's Android operating system.
"The importance of this launch cannot be overstated," said Ramon Llamas, an analyst at the research firm IDC. "There's going to be a lot of work that needs to be done to earn back respect."
RIM, whose stock is at about one-eighth of its valuation in 2008, said it plans to "significantly" increase its marketing budget for the BlackBerry 10 launch, and there will be events in New York and five other global cities.
The company website home page depicts a sleek black device against a black background, alongside the words: "The Blackberry Experience. Re-designed. Re-engineered. Re-invented."
RIM is touting the system as a big change in smartphone technology.
"This is an entirely new operating system," said company spokesman Nick Manning. "We think it's the first entirely new mobile operating system in about five years."
More than 150 carriers worldwide have been testing the new platform, and RIM has given more than 8,000 prototypes to application developers.
BlackBerry 10 devices will be offered in an all-touchscreen version as well as in a model that keeps a physical keyboard.
RIM says the system will break new ground by creating a user space that allows customers to flip between applications seamlessly and without first passing through a home page, to boost efficiency and multitasking.
This feature has caused real "excitement" as RIM has met with carriers around the world, RIM chief executive Thorsten Heins told analysts on a December earnings conference call.
Another key asset of BlackBerry 10 is what RIM dubbed the "BlackBerry balance," a system that allows users to separate professional communications and applications from music, photographs and other personal items.
Such an option means that if a user changes job, his or her former company can disable the device's corporate side without affecting personal data.
BlackBerry, which until a few years ago was the dominant smartphone, has seen its market share slip to under five percent last year, surveys show.
Gartner analyst Phillip Redman said RIM still has a strong constituency of business users who prefer its hard keyboard and its reputation for strong network security.
While Redman doesn't think the BlackBerry 10 will surpass Apple's iPhone or Android products, the device "has great comeback potential," he wrote in a recent blog entry.
But the market is also getting more competitive with new Android devices, and RIM will be competing with Microsoft's Windows Phone for third place, and such conditions leave some analysts doubtful about the company's prospects.
RIM has already undertaken a significant downsizing, cutting about 5,000 staff from the 17,000 workers it employed last May, making further job cuts difficult to envision if the BlackBerry 10 fails to generate huge sales.
Analysts also expressed reservations about RIM's loss of service fees. Whereas the company's older devices were routed into RIM's network for which the company charged, the new service won't keep users on RIM's network.
That removes a key revenue stream, though RIM will also offer its software platform for rival devices.
"We don't buy the hype," Citi analyst Jim Suva said in a research note, pointing out that rivals such as China's Huawei are also entering the market.
"We remain skeptical of how the company can compensate for the highly profitable service streams as it materially and structurally shifts lower with the coming BB10 products, which will derive lower rates going forward."
Sterne, Agee & Leach analyst Shaw Wu noted that many of the high-end customers to which RIM is marketing have already migrated to other devices.
"We see the company getting a degree of traction in this higher end market, but doubt there is a return to its former glory," Wu said.
AFP RELAXNEWS
Mon Jan 28 2013
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.