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Chief of trouble phonemaker is confident RIM will recover, despite analyst pessimism

Pacific Crest analyst James Faucette joined the growing crowd of analysts prophesying the embattled Canadian phonemaker Research in Motion, Ltd.'s (TSE:RIM) demise, saying he expects the new operating system will get "a lukewarm response at best" from consumers.  He points to a foreign interface and a lack of apps as key deterrents to potential adoption.

I. RIM Soldiers Forward Towards Crucial Launch

RIM CEO Thorsten Heins admits that his company is struggling, but he views BB10's chances in a far different light, commenting to Reuters, "I think it's all lining up. Sometimes you get the feeling that the universe is in disarray, and with BlackBerry 10 coming, I see the stars lining up."

BlackBerry 10 will launch at a special event on January 30, although RIM has not revealed when actual product will land in stores.  The release is quite belated; RIM had hoped to launch BlackBerry in early 2012, but the launch date slipped more than once.

But Mr. Heins, who became chief of the struggling firm in Jan. 2012, is convinced that the unique features of BB10 will win over consumers and make it worth the wait.  He points to UI features that he argues his larger competitors -- namely Google Inc.'s (GOOG) Android OS and Apple, Inc.'s (AAPL) iOS -- lack, such as swipable transitions between apps and in-frame previews of emails.

He also takes issue with his rivals calling their security "good enough", but not great.  He comments, "There's this high-level security that you cannot walk away from, and then there's 'good enough' security."

II. At Least He Has a Plan

To RIM's credit; it has done a fairly good job courting developers (despite some odd videos).  At launch it expects BB10 to have around 100,000 apps, a figure that puts it in the same ballpark as Microsoft Corp.'s (MSFT) Windows Phone platform.  Coincidentally, Mr. Heins previously set the modest goal of being "third place" in the market, a goal that would require beating back Microsoft.

Despite plunging share prices and layoffs of 5,000 employees, Mr. Heins insists he's keeping morale up among employees and shareholders alike.  He comments, "The message to our shareholders is that we understand this is and has been a difficult time for them and for us.  But with the development of the BlackBerry 10 platform we are truly convinced that we will create long-term value for RIM's shareholders and investors."

BlackBerry 10 handsets [Image Source: Crackberry]

Mr. Heins did offer up some new details about the framework for the BlackBerry 10 launch and RIM's survival bid.  He says RIM will trim an additional $800M USD to $1B USD from its operating expenses by the end of March.

As for the launch, he says it will be preceded by special in-depth preview workshops with his company's top 50 enterprise customers.  And he says the launch will roll out in waves globally, commenting, "We cannot launch every carrier and every country on the same day, but what we have defined is a set of waves in the various regions.  It is going to be a global launch. There isn't one preferred region. We are managing and planning it as we speak."

Source: Reuters

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the truth
By crispbp04 on 11/15/2012 1:59:21 PM , Rating: 1
word on the street is that BB10 is actualy just rebranded windows phone 8

RE: the truth
By TomJasper on 11/15/12, Rating: 0
RE: the truth
By crispbp04 on 11/15/2012 2:51:31 PM , Rating: 5

RE: the truth
By Motoman on 11/15/2012 3:15:14 PM , Rating: 2

RE: the truth
By CloudFire on 11/15/2012 8:10:04 PM , Rating: 2
LOL very well played! Took me a few seconds for it to make sense.

RE: the truth
By Flunk on 11/15/2012 3:49:03 PM , Rating: 3
Quit wasting other people's time trolling online and get a job.

RE: the truth
By retrospooty on 11/15/2012 2:23:26 PM , Rating: 2
I am not sure what "word" that is. It's been well known and documented that RIM partnered up with QNX 3 years ago, then bought the whole company. It's a good OS, with WebOS like multitasking and task switching, which beats the stink out of Android IOS and WP8 combined... Unfortunately for RIM, it took them 3 years and still no phone on the market for another 2.5 months at least. LOL.

A good phone is alot more than just a Good OS on some good hardware. The ROM itself takes a ton of work to get it all working together fast and stable. That is where RIM will probably fail. RIM hasnt been able to do anything right in the past 5 years. For anyone to think they will go from zero to 100 on this next launch is fooling themselves. A great OS, and great hardware plus a poorly executed ROM and app integration = a buggy phone that completely sucks.

RE: the truth
By invidious on 11/15/2012 2:44:42 PM , Rating: 3
Marketshare is very important to the success of a platform, I would say as much as the base functionality of the OS. Low market share means no one is developing new apps for the platform. RIM's marketshare is terrible and their app library is nothing to write home about.

It is a chicken and egg situation and it takes a time, money, reputation, and a good product to succeed. Even if this OS is a hit it is going to take years for RIM to recover their reputation and regain financial stability. Their marketshare will almost certainly never be what it was.

I dont think there is room in the mobile sector for another platform. I don't think there is room for microsoft as 3rd platform, but microsoft has the money and reputation to create some room assuming their product pans out. RIM doesn't have the money or reputation to be a 3rd platform and they certainly don't have it to be a 4th.

RE: the truth
By Pirks on 11/15/12, Rating: -1
RE: the truth
By retrospooty on 11/15/2012 4:12:19 PM , Rating: 2
uh... Pirks, Apple had a huge marketshare up until last year. They had all the app support 2 years ago and marketshare was a huge reason why.

As for RIM, even if it comes out perfect with no major bugs or problems, its still going to have a tough hill to climb against Android and Apple. RIM blew it and it wont be easy to get it back. It cant be "just as good" as Android and Apple. It has to be significantly better, or the industry will give it a resounding "meh" and move on.

RE: the truth
By Retrosploogy on 11/16/2012 1:48:54 AM , Rating: 1
I suck yak balls.

RE: the truth
By Cheesew1z69 on 11/16/2012 3:41:27 PM , Rating: 2
We already knew you liked balls in your mouth Pirks...

RE: the truth
By NellyFromMA on 11/16/2012 1:23:36 PM , Rating: 2
So, I kind of agree with this, but Apple continues to have huge marketshare and a large installed userbase even if there is current fluctuation over who actually has the most marketshare by percentage.

So, whether anyone likes it or not, Apple is going to have developers for the next decade as a result even if they are not the most dominant industry participant, which all signs indicate Apple so far has the most appropriate business model for longevity.

As much as that aggravates me...

RE: the truth
By retrospooty on 11/16/2012 5:06:08 PM , Rating: 2
"As much as that aggravates me..."

ITs a good thing. Apple does continually push things forward. If not for MAc, Windows7 wouldnt be so great. If not for iPhone, smartphones would not be so great. If not for Apples retina, we would all still be looking at low res screens. Without Apples huge push on apps, we wouldn't have as many great apps today. They do push things forward and force the competition to raise their games.

Today, Android has easily passed Apple in terms of OS, but it it wasnt for Apple being as good as tehy are, Android wouldnt have had that mountain to climb.

RE: the truth
By NellyFromMA on 11/16/2012 1:18:09 PM , Rating: 2
Marketshare isn't really the end-all be-all of importance to gaining in roads in the tech industry in the 21st century. Please see iOS and OS X and their 10 year trajectory going from next to nothing (or in iOS case, nothing) to dominating (iOS) and substantial gains (OS X) for proof.

RE: the truth
By Retrosploogy on 11/16/2012 1:51:42 AM , Rating: 1
Blah. Blah. Blah. I like to lick my finger and stick it in my arse. Hmmm. Tasty. My finger smells like poop.

"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke

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