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
$121.30
Apple Inc.
-1.07
GOOG
$625.61
Google Inc.
-6.98
MSFT
$46.70
Microsoft Corporation
-0.18
MacNews Search:
Community Search:
view counter

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

Card King: Dragon Wars - Tips, Tricks an...
[Read more] | Read more »
Pac-Man Championship Edition DX has brou...
Bandai Namco has released Pac-Man Championship Edition DX on iOS and Android, which features the classic arcade gameplay that we've all grown to love. Pac-Man Championship Edition DX can be enjoyed in much shorter bursts than the arcade versions but the gameplay remains intact. [Read more] | Read more »
Cosmonautica (Games)
Cosmonautica 1.1 Device: iOS Universal Category: Games Price: $6.99, Version: 1.1 (iTunes) Description: Cast off! Are you ready for some hilarious adventures in outer space? | Read more »
Rescue humanity from a Demon horde in An...
Angel Stone is Fincon's follow up to the massively successful Hello Hero and is out now on iOS and Android. You play as a member of The Resistance, a group of mighty human warriors who have risen up in defiance of the Demon horde threatening to wipe out humanity. [Read more] | Read more »
Gallery Doctor (Photography)
Gallery Doctor 1.0 Device: iOS iPhone Category: Photography Price: $2.99, Version: 1.0 (iTunes) Description: Free up valuable iCloud and iPhone storage with Gallery Doctor, the only iPhone cleaner that automatically identifies the unwanted photos on your device.What can Gallery Doctor do you for you? | Read more »
You Against Me (Games)
You Against Me 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: A simple game… You. Me. Claim, steal, lock, score, win! | Read more »
Yep, it's True - Angry Birds 2 is O...
The not exactly rumors were true and the birds are back. Angry Birds 2 has come to the App Store and the world will... well I suppose it'll still be the same, but now we have more bird-flinging options! [Read more] | Read more »
You Could Design Your Own Card for Chain...
If you've ever wanted to create your own item, weapon, trap, or even monster for Chainsaw Warrior: Lords of the Night, this is your chance. Auroch Digital is currently holding a contest so that fans can fight to the death (not really) to see which design will make the cut (no pun intended). [Read more] | Read more »
Bitcoin Billionaire is Going Back in Tim...
If you thought you managed to buy everything there is to buy in Bitcoin Billionaire and make all the money, well you though wrong. Those of you who made it far enough might remember investing in time travel - and it looks like that investment is finally going to accomplish something. [Read more] | Read more »
Domino Drop (Games)
Domino Drop 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Domino Drop is a delightful new puzzle game with dominos and gravity!Learn how to play it in a minute, master it day by day.Your mind will be challenged.Your soul will be calmed.Features:- 3 unique game modes- 12 pleasant music... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.