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
$110.23
Apple Inc.
-0.14
GOOG
$599.30
Google Inc.
-6.95
MSFT
$42.94
Microsoft Corporation
-0.56
MacNews Search:
Community Search:
view counter

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

Zen Brush 2 (Entertainment)
Zen Brush 2 1.0 Device: iOS Universal Category: Entertainment Price: $2.99, Version: 1.0 (iTunes) Description: Zen Brush 2 is a drawing app focused on the strong yet beautiful feel of the East Asian ink brush. | Read more »
NetNewsWire (News)
NetNewsWire 4.0.0 Device: iOS iPhone Category: News Price: $3.99, Version: 4.0.0 (iTunes) Description: Follow the Web NetNewsWire 4, completely written from the ground up for iPhone. NetNewsWire is the best way to keep up with the sites and authors you read most regularly. Let NetNewsWire pull down the latest articles, and read... | Read more »
Huzzah! Farming Simulator 16 Supports Cl...
As though it weren't difficult enough to resist the siren call of Farming Simulator 16, now it's been updated with cloud saves - so you can jump between devices without missing any of that precious crop-harvesting time. [Read more] | Read more »
Don't Starve: Pocket Edition Finall...
I've made no effort to hide my enjoyment of Don't Starve: Pocket Edition, but I will admit I was a tiny bit disappointed that it was only available for the iPad. Well nuts to that, because Klei Entertainment has made it universal! [Read more] | Read more »
Goat Simulator Wasn't Enough? Then...
If you just didn't get enough goat in Goat Simulator - or if you've been wanting to play a simulated MMO as a microwave - then you're in luck! Goat Simulator MMO Simulator is out now, and it's a game about simulated goats in simulated MMOs. Plus you can play as a microwave. [Read more] | Read more »
You Can Play Madfinger Games' Unkil...
Madfinger Games - probably best known for the Dead Trigger series - has officially launched their newest zombie shooter (that isn't called Dead Trigger), named Unkilled. [Read more] | Read more »
KORG iELECTRIBE for iPhone (Music)
KORG iELECTRIBE for iPhone 1.0.1 Device: iOS iPhone Category: Music Price: $9.99, Version: 1.0.1 (iTunes) Description: ** 50% OFF Special Launch Sale - For a Limited Time **The ELECTRIBE reborn in an even smaller form A full-fledged rhythm machine for iPhone | Read more »
Toca Life: City Just Got a Bunch of New...
Toca Life: City is Toca Boca's most popular app (number 1 in 47 different countries, apparently), and it's just had an update that adds a bunch of new content. [Read more] | Read more »
My Country 3D is More About Cities than...
My Country 3D is an upcoming city builder from Game Insight that looks pretty decent - although the name seems a tad out of whack for a city builder. Ah well, it is what it is. [Read more] | Read more »
I am Bread (Games)
I am Bread 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: ‘I am Bread’ is the latest quirky adventure from the creators of 'Surgeon Simulator', Bossa Studios. This isn't the best thing since sliced bread . . . it is sliced bread!9/10 - SteamWired - 'I am Bread is the strangest game you... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.