RIM will get a boost but not salvation from BB10
TweetFollow Us on Twitter

RIM will get a boost but not salvation from BB10

With the imminent launch of BlackBerry 10 (BB10), Jan Dawson, chief telecoms analyst at Ovum (www.ovum.com) believes "the new software platform will provide a temporary boost in performance but no salvation for RIM."

"RIM continues to face the twin demons of consumer-driven buying power and a chronic inability to appeal to mature market consumers. There is nothing in what we’ve seen so far of BB10 that suggests it will conquer the second of these demons, and the first is utterly out of RIM’s control," he says. "We don’t expect a speedy exit from the market; with no debt, 80 million subscribers and profitability in the black in at least some recent quarters, the company can continue in this vein for years. But its glory days are past, and it is only a matter of time before it reaches a natural end."

Two major factors have worked against RIM in the past two years: companies are no longer buying the majority of smartphones sold today, and individuals overwhelmingly choose devices other than BlackBerries when they make buying decisions. Both of these have depressed sales for RIM’s devices, and neither is going away.

"The first of these phenomena is unstoppable, and we expect a significant increase in employee-led rather than IT department-led smartphone buying," says Dawson. "Our recent surveys suggest that even when employees aren’t choosing the device, they expect the replacement for their current BlackBerry to be an iPhone or an Android device. The second trend could be stopped in theory, but RIM does not seem to be focusing on this approach in BB10."

Despite the brief bump RIM will see from the launch of BB10, Ovum expect sits decline to continue longer term. At its peak, RIM shipped between 12 and 15 million devices per quarter, but there is no way it can hit this number on a sustainable basis once the BB10 launch filters through, says the research group.

"Though the new platform should have significant appeal to existing users, we don’t expect it to win significant numbers of converts from other platforms," says Dawson. "There is little in the new platform that suggests it will have the compelling apps, content stores, or the broader ecosystem that consumers have come to expect in a competitive smartphone platform"

There are bright spots in emerging markets, where BlackBerry devices have become a middle-class status symbol as they once were in mature markets. However, these devices are low-priced and based on BB10’s predecessor BB7, which is destined for the scrap heap in the medium term.

"In all, RIM continues to face the twin demons of consumer-driven buying power and a chronic inability to appeal to mature market consumers," says Dawson. "here is nothing in what we’ve seen so far of BB10 that suggests it will conquer the second of these demons, and the first is utterly out of RIM’s control. We don’t expect a speedy exit from the market; with no debt, 80 million subscribers and profitability in the black in at least some recent quarters, the company can continue in this vein for years. But its glory days are past, and it is only a matter of time before it reaches a natural end."

 
AAPL
$567.77
Apple Inc.
+43.02
GOOG
$525.16
Google Inc.
-1.78
MSFT
$39.86
Microsoft Corpora
+0.17
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Pen & Ink Review
Pen & Ink Review By Jennifer Allen on April 24th, 2014 Our Rating: :: CONVENIENT ARTISTRYiPad Only App - Designed for the iPad Pen & Ink is an ideal way to sketch down some visual ideas or simply spark your imagination.   | Read more »
Sonic & All-Stars Racing Transformed...
Sonic & All-Stars Racing Transformed Now Free, to Add New Iconic Characters and Elements Posted by Tre Lawrence on April 24th, 2014 [ | Read more »
Soccer Rally 2 Review
Soccer Rally 2 Review By Carter Dotson on April 24th, 2014 Our Rating: :: GOALKEEPINGUniversal App - Designed for iPhone and iPad Soccer Rally 2 is the most serious vehicular soccer game ever created.   | Read more »
Galaxy Conquerors Review
Galaxy Conquerors Review By Jennifer Allen on April 24th, 2014 Our Rating: :: RETRO SHOOTINGUniversal App - Designed for iPhone and iPad Old school shooting is fun but inaccurate in Galaxy Conquerors.   | Read more »
Yomi Review
Yomi Review By Rob Thomas on April 24th, 2014 Our Rating: :: C-C-C-COMBO BREAKERiPad Only App - Designed for the iPad Round One – Fight! No quarters required for this iOS adaptation of a tabletop adaptation of the arcade fighting game genre. How’s that for a combo?   | Read more »
Injustice: Gods Among Us Updated with Ne...
Injustice: Gods Among Us Updated with New Characters, Leaderboards, Gear, and Online Multiplayer Posted by Rob Rich on April 24th, 2014 [ | Read more »
Spin It Review
Spin It Review By Jordan Minor on April 24th, 2014 Our Rating: :: SPIN ME RIGHT ROUNDUniversal App - Designed for iPhone and iPad Spin It has a fine puzzle game model, but its execution lacks energy.   | Read more »
Productivity App NoteSuite is Having its...
Productivity App NoteSuite is Having its Biggest Sale Ever, Just for One Week Posted by Rob Rich on April 24th, 2014 [ permalink ] | Read more »
Wayward Souls Review
Wayward Souls Review By Carter Dotson on April 24th, 2014 Our Rating: :: CARRY ON, WAYWARD SONUniversal App - Designed for iPhone and iPad Wayward Souls is a roguelike-inspired action-RPG that sets a high bar for other games to compare to.   | Read more »
The Sandbox Gets Update, Receives New Ca...
The Sandbox Gets Update, Receives New Campaign and New Elements Posted by Tre Lawrence on April 24th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.