Analysts Expect Big Turnout At RIM Trade Show
Critics say that Research In Motion Ltd is in need of producing evidence next week that it is close to unveiling a more consumer-friendly BlackBerry experience if it hopes to keep up with its competitors.
Analysts say Apple’s iPhone, Motorola’s Droid and other rival smartphones could keep taking market share from the BlackBerry until RIM delivers an improved operating system and browser.
That has heightened the anticipation of RIM’s annual Wireless Enterprise Symposium, which runs April 27-29 this year in Orlando Florida.
Even devout BlackBerry fans criticize the look, feel and operation of a device built around its email function. Analyst say RIM could make its phones more appealing by adding multi-touch technology and other intuitive, easy-to-use features that are already equipped on Apple’s iPhone.
Should RIM deliver, "I think that will put a lot of the naysayers’ concern to rest," Avian Securities analyst Matthew Thornton told Reuters.
"The expectation is that they can’t compete at the high end so they’re increasingly pushing down price scale to the lower end, and that will run out of room at some point and it’ll have implications for profitability."
As RIM faces more competition in North America, it has made a larger push into fast-growth international markets, where its cheaper smartphones find favor.
According to RIM, it is still holding its ground in the consumer market, but analysts want to hear details about how it plans to win the fight. One key part of that strategy is seeing its effort to increase the number of apps available for its phones.
RIM used the WES event in the past to show off new products and partnerships, generating a positive vibe that has boosted its stock.
"In the past three years, WES has been a positive catalyst for RIM’s shares, outpacing both the S&P 500 and Nasdaq by 5 percent plus," said Oppenheimer analyst Ittai Kidron in a note to clients.
Jim Balsillie, RIM co-Chief Executive, heightened expectations recently by promising major product launches in the next year. He told analysts on a conference call that if the company’s playbook was to be seen then they would be "blown away."
The speculation of the event has focused on RIM unveiling several new handsets at the show. One of which, the BlackBerry 9670, is expected to be shaped like a clamshell and could become the first RIM phone to use the new operating system.
The company might also use the event to launch the long-awaited high-end Bold 9650 and lower end 3G Pearl.
"I want to walk away from this event feeling like these guys do have another high-end product cycle that is worth paying attention to," Avian’s Thornton told Reuters.
Boy Genius, a respected tech blogger, posted screen shots this week of the 9670 and details of the RIM’s upcoming operating system. The system received a positive review from the blogger.
Canaccord Adams analyst Peter Misek said he plans to look at RIM’s 2010 growth plan and how it plans to differentiate itself from other rival companies.
The company may do this during a full-day analyst meeting on Monday, which is the day before the start of WES.
Evidence of the cutthroat competition RIM faces was brought into sharp relief on Tuesday when Apple posted blow results on the back of record iPhone sales.
RIM reported quarterly profit, revenue, and phone shipments March 31 that came in below market expectations, which raised concerns about its prospects.
Apple’s growth in international markets like Asia is another hurdle for RIM to climb over to ease the minds of troubled investors.
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