Can new smartphones rekindle the BlackBerry fire?
"Not dead yet" could well be the new BlackBerry marketing theme, as the world prepares to hear about two new BlackBerry 10 smartphones to be announced next Wednesday.
Days before the announcement, there is fairly wide disagreement among analysts and developers over whether Research In Motion can stop the dramatic decline of its BlackBerry phones. The BlackBerry was the market leader until the iPhone was introduced in 2007 and Android phones after that. Its market share fell to 10% in 2010 and has dwindled to 5% today.
In advance of the event, specifications and photos have been widely leaked of the new touchscreen and QWERTY-keyboard versions of BlackBerry smartphones, but RIM hasn't confirmed many of the details.
According to unconfirmed reports, the touchscreen version, dubbed the Z10, will have a 4.2-in. display, a resolution of 1280 pixels by 768 pixels and 16GB of internal storage.
It will also include a Snapdragon processor, an 8-megapixel rear camera, and Near-Field Communications technology (useful for mobile payments). Moreover, the models available from Verizon Wireless will be able to run on 4G LTE cellular networks.
Less is known about the smaller QWERTY version, known as the X10. With this model, RIM is acknowledging its loyal following of users, among 80 million overall globally, who prefer a physical keyboard.
RIM officials confirmed that thousands of prerelease BlackBerry 10 devices have been tested by corporations, which have been the mainstay of the company's customer base, even as BlackBerry's global market share has dwindled to 5%, according to Gartner. Meanwhile Android has captured 65% of the global smartphone market and the iPhone has about 21%.
Analysts who have tried the devices offered some promising predictions. "The new BB10 offers the best [user experience] on the market—not perfect, but certainly a rival to the iPhone 5, with even greater performance," said Gartner analyst Phillip Redman in a blog post this week entitled "RIM begins its comeback year with BES 10 launch."
In an interview, Redman said that BB10 devices won't surpass Apple or Android devices, but, he added, "I think they will beat Windows Phone." Moreover, he predicted that RIM will "market this like nothing before, [with] much of the future of the company depending on the launch."
In contrast, Citigroup financial analyst Jim Suva reminded clients in a note that the pre-announcement optimism for BlackBerry 10 devices is not necessarily an indicator of how well the phones will sell.
"We remind investors that actual sell-through matters to determine the true financial impact that the new OS and hardware will have on the company's financials, especially in an increasingly competitive environment," Suva said.
Michael Mullany, CEO of Sencha, a company that is an HTML5 development partner of RIM on the BlackBerry 10 platform, remains optimistic. "We think BB 10 has a good shot at re-igniting RIM sales," he said.
In an interview, Mullany said the prerelease Z10 touchscreen model that developers have been testing offers "incredible performance for the browser inside—it will be a market leader for HTML5."
Developer interest in apps
RIM also said it has seen heavy developer interest in building apps for BlackBerry 10, with 15,000 apps published in the BlackBerry World app store in two days.
Previous browsers in BlackBerry smartphones have been a sore spot for RIM, and Mullany remarked that the BlackBerry Torch smartphone, which was released two years ago was a disappointment. "When we got the Torch," he recalled, "we scratched our heads and said, 'Are they serious?'"
But Mullany also said that RIM has not "irreparably harmed itself," because mobile consumers "have very short memories." He said the Z10 has impressive speeds for scrolling content and responds quickly to touches.
Mullany said he's not privy to RIM's plans to market the Z10 or X10, but he noted that RIM has faced difficulties in the past in trying to attract consumers to BlackBerry devices after years of serving the needs of working professionals and enterprise IT shops.
In recent years, RIM relied on rock star Bono and the hip-hop group Black Eyed Peas to promote the BlackBerry brand among consumers. But even stellar marketing could not correct a problematic product like the Torch.
"I feel this [Z10] is a very robust consumer device," Mullany said. "It's not a business-only device for sure. It will do well in the consumer and prosumer market."
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