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What’s ailing RIM's Blackberry and will BB10 help rescue it?

By: iPadfanzz staff on December 29, 2013

Research In Motion, the Canadian manufacturer of the BlackBerry family of smartphones and PlayBook tablet, is all set to release its BlackBerry 10 operating system and two smartphones designed to run on it.


In its communiqué, the company is referring BB10 as RIM's "new mobile computing platform that will power the next generation of smart phones and tablets". And as expected RIM has high hopes from the new operating system which it believes could be a “life-saver” for the company which has failed to address current market trends and designed its latest release primarily for existing users, building "the best BlackBerry for BlackBerry users".

Like industry analysts, investors too are betting big on the launch of the new handsets that will mark the beginning of remarkable comeback. RIM’s share of the global smartphone market has declined steadily from a peak of roughly 20 per cent in 2009 to about 6 per cent today.  However, the company was able to remain afloat due to continued strong sales in few markets and the annuity0-style services revenues it charges mobile phone operators for the its Blackberry services. While doing so the company has also undergone massive restructuring as it slashed 7,000 jobs and has taken stringent efforts to revive its ageing product portfolio.

One such reason for such a decline is that the enterprises no longer buy the bulk of smartphones and that consumers are opting to buy other devices that are more feature packed and comes at even lower cost such as iPhone and Anadroid operated smartphones, thus leading to a decline in sales for the company.’ Another argument is that the company is doing little or not effort in reviving its sagging sales in form of encouraging consumers to covert to RIM platform.

However, analysts say the RIM is ‘not dead yet!’ despite the fact that the enterprise market is rapidly being replaced by the iPhones. In a survey carried out by Gartner in December 2012, it was revealed that almost 14 per cent of the 222 companies surveyed in North America still want to do with BlackBerry as their primary platform in 12 months’ time. Those surveyed said they still want to keep their  BlackBerry for its security and its hard keyboard.

The industry expects the RIM will be buoyed in the short term by the pent-up demand for BB10 devices. However, many still question whether the new device and operating system have what it takes to sustain a turnaround at RIM and help the brand regain its “mojo”.

In total, the company will launch two devices – one with touchscreen only, the other with both a touchscreen and a Qwerty keyboard. At the same time the company is also encouraging developers to come out with a good number of apps. In order to boost up its offerings, RIM has already announced several music and video partners for its BB10 storefront, including Walt Disney Studios, Sony Pictures, Universal Music Group and Warner Music Group.

Despite all these efforts, analysts question whether it is “too late” for the Blackberry comeback or it is too little and too late. Looking at the size of investments and efforts required to create a sizeable marketshare in the highly competitive smartphone market, the road for RIM will certainly be filled with immense challenges that it has to past.
 

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