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
$123.25
Apple Inc.
-0.99
GOOG
$548.34
Google Inc.
-6.83
MSFT
$40.97
Microsoft Corporation
-0.24
MacNews Search:
Community Search:
view counter

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

Fast & Furious: Legacy's Creati...
| Read more »
N-Fusion and 505's Ember is Totally...
| Read more »
These are All the Apple Watch Apps and G...
The Apple Watch is less than a month from hitting store shelves, and once you get your hands on it you're probably going to want some apps and games to install. Fear not! We've compiled a list of all the Apple Watch apps and games we've been able to find so far. Games Rules! By TheCodingMonkeys App Store Description: RULES! is a cute puzzle game... | Read more »
Appy to Have Known You - Lee Hamlet Look...
Being at 148Apps these past 2 years has been an awesome experience that has taught me a great deal, and working with such a great team has been a privilege. Thank you to Rob Rich, and to both Rob LeFebvre and Jeff Scott before him, for helping me to grow as a writer and for giving me the opportunity to write about what I love: playing innovative... | Read more »
Hands-On With Allstar Heroes - A Promisi...
Let’s get this out of the way quickly. Allstar Heroes looks a lot like a certain other recent action RPG release, but it turns out that while it’s not yet available here, Allstar Heroes has been around for much longer than that other title. Now that copyright row is out of the way, I can say that Allstar Heroes seems pretty fun. It’s not out here... | Read more »
Macho Man and Steve Austin Join the Rank...
WWE Immortals, by Warner Bros. Interactive Entertainment and WWE, has gotten a superstar update. You'll now have access to Macho Man Randy Savage and Steve Austin. Both characters have two different versions: Macho Man Randy Savage Renegade or Macho King, and Stone Cold Steve Austin Icebound Watcher or Texas Rattlesnake. | Read more »
Fearless Fantasy is Fantastic for the iF...
I actually had my first look at Fearless Fantasy last year at E3, but it was on a PC so there wasn't much for me to talk about. But now that I've been able to play with a pre-release version of the iOS build, there's quite a bit for me to talk about. | Read more »
MLB Manager 2015 (Games)
MLB Manager 2015 5.0.14 Device: iOS Universal Category: Games Price: $4.99, Version: 5.0.14 (iTunes) Description: Guide your favorite MLB franchise to glory! MLB Manager 2015, officially licensed by MLB.com and based on the award-winning Out of the Park Baseball series, is the most fun and realistic baseball game ever created for... | Read more »
Breath of Light (Games)
Breath of Light 1.0.1421 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.1421 (iTunes) Description: Hold a quiet moment.Breath of Light is a meditative and beautiful puzzle game with a hypnotic soundtrack by Winterpark.BEAUTIFULInspired by modern minimalism combined with a range of meditative art styles, from Zen... | Read more »
WWE WrestleMania Tags into the App Store
Are You ready to rumble? The official WWE WrestleMania app, by World Wrestling Entertainment, is now available. Now you can get all your WrestleMania info in one place before anyone else. The app offers details on superstar signings, interactive venue maps, event schedules, WrestleMania Superstore hours, stadium information, and more. You can also... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.