BlackBerry10

Crucial, long-overdue BlackBerry makeover arrives

Associated Press, January 29, 2013

The maker of the BlackBerry smartphone is promising a speedier device, a superb typing experience and the ability to keep work and personal identities separate on the same phone. It's the fruit of a crucial, long-overdue makeover for the Canadian company.Thorsten Heins, chief executive of Research In Motion Ltd., will show off the first phone with the new BlackBerry 10 system in New York on Wednesday. A marketing campaign that includes a Super Bowl ad will accompany the long-anticipated debut. Repeated delays have left the once-pioneering BlackBerry an afterthought in the shadow of Apple's trend-setting iPhone and Google's Android-driven devices.
Now, there's some optimism. Previews of the software have gotten favorable reviews on blogs. Financial analysts are starting to see some slight room for a comeback. RIM's stock has nearly tripled to $16.18 from a nine-year low in September, though it's still nearly 90 percent below its 2008 peak of $147.
Most analysts consider a BlackBerry 10 success to be crucial for the company's long-term viability.
"The old models are becoming obsolete quickly," BGC Financial analyst Colin Gillis said. "There is still a big user base but it's going to rotate off. The question is: Where do they rotate to?"
The BlackBerry, pioneered in 1999, has been the dominant smartphone for on-the-go business people. Corporate information-technology managers like the phones because they're relatively secure and easy to manage. Many employees loved them because of physical keyboards that were easier to type on than the touch-screen iPhone. President Barack Obama couldn't bear to part with it when he took office. Oprah Winfrey declared it one of her "favorite things." People got so addicted that the device was nicknamed "the CrackBerry."
The BlackBerry began to cross over to consumers. But when the iPhone came out in 2007, it showed that phones can do much more than email and phone calls. They can play games, music and movies. Android came along to offer even more choices. Though IT managers still love BlackBerrys, employees were bringing their own devices to the workplace - a trend Heins acknowledged RIM was slow to adapt to.
Suddenly, the BlackBerry looked ancient.
Even as BlackBerry sales continued to grow in many parts of the world, many BlackBerry users in North America switched to iPhones and Android devices. BlackBerry's worldwide subscriber based peaked at 80 million in the quarter that ended Sept. 1, before dropping to 79 million in the most-recent quarter. In the U.S., according to research firm IDC, shipments of BlackBerry phones plummeted from 46 percent of the market in 2008 to 2 percent in 2012. Most phones in use today are either iPhones or Android devices.
RIM promised a new system to catch up, using technology it got through its 2010 purchase of QNX Software Systems. RIM initially said BlackBerry 10 would come by early 2012, but then the company changed that to late 2012. A few months later, that date was pushed further, to early 2013, missing the lucrative holiday season. The holdup helped wipe out more than $70 billion in shareholder wealth and 5,000 jobs.
Although executives have been providing a glimpse at some of BlackBerry 10's new features for months, Heins will finally showcase a complete system at Wednesday's event. Devices will go on sale soon after that. The exact date and prices are expected Wednesday.
RIM redesigned the system to embrace the multimedia, apps and touch-screen experience prevalent today.
"Historically there have been areas that have not been our strongest points," Rick Costanzo, RIM's executive vice president of global sales, said in an interview. "Not only have we caught up, but we may even be better than some of the competition now."
Costanzo said "no one else can touch" what RIM's new system offers.
The new operating system promises better multitasking than either the iPhone or Android. Simply swipe a finger across the phone's display screen to switch to another program.
All emails and notifications from such applications as Twitter and Facebook go to the BlackBerry Hub, a nerve center accessible with a finger swipe even if you have another application open. One can peek into it and open an email, or return to the previous application without opening the email.
"You are not going in and out of applications; you're flowing through applications with one simple gesture of your finger," Costanzo said. "You can leave applications running. You can effortlessly flow between them. So that's completely unique to us."
That said, multitasking will still be limited. If you're watching a video, it will still run while you check for email. But it will pause if you decide to open an email and resume when you are done.
The BlackBerry's touch-screen keyboard promises to learn a user's writing style and suggest words and phrases to complete, going beyond typo corrections offered by rivals. See the one you want, and flick it up to the message area. Costanzo said that "BlackBerry offers the best keyboard, period."
Gus Papageorgiou, a Scotiabank financial analyst who has tried it out, agreed with that assessment and said the keyboard even learns and adjusts to your thumb placements.
The first BlackBerry 10 phone will have only a touch screen. RIM has said it will release a version with a physical keyboard soon after that. That's an area RIM has excelled at, and it's one reason many BlackBerry users have remained loyal despite temptations to switch.
Another distinguishing feature will be the BlackBerry Balance, which allows two personas on the same device. Businesses can keep their data secure without forcing employees to get a second device for personal use. For instance, IT managers can prevent personal apps from running inside corporate firewalls, but those managers won't have access to personal data on the device.
With Balance, "you can just switch from work to personal mode," Papageorgiou said. "I think that is something that will attract a lot of people."
RIM is also claiming that the BlackBerry 10's browser will be speedy, even faster than browsers for laptop and desktop computers. According to Papageorgiou, early, independent tests between the BlackBerry 10 and the iPhone support that claim.
Regardless of BlackBerry 10's advances, though, the new system will face a key shortcoming. It won't have as many apps written by outside companies and individuals as the iPhone and Android. RIM has said it plans to launch BlackBerry 10 with more than 70,000 apps, including those developed for RIM's PlayBook tablet, first released in 2011. Even so, that's just a tenth of what the iPhone and Android offer. Papageorgiou said the initial group will include the most popular ones such as Twitter and Facebook. But RIM will have to persuade others to make a BlackBerry version, when they are already struggling to keep up with both the iPhone and Android.
Like many analysts, Papageorgiou recently upgraded RIM's stock, but cautioned that longtime BlackBerry users will have to get used to a whole new operating system.
He said RIM can be successful if about a third of current subscribers upgrade and if the company can get 4 million new users overseas, especially in countries where the BlackBerry has remained popular. IDC said smartphone shipments grew 44 percent in 2012. If those trends continue, it will be possible for the BlackBerry to grow even if iPhone and Android users don't switch.
"This doesn't have to be the best smartphone on the planet to be a success for RIM," he said. "I think the big question though is, if it fails, is it just too late? Are the other two ecosystems just so advanced that no one can catch up? That's a big risk."

BlackBerry 10 AppWorld

RIM to spice BlackBerry 10 AppWorld with local flavors

 November 16, 2012

Research In Motion is pushing for app quality, not quantity, with its make-or-break BlackBerry 10 devices set for launch on January 30, and targeting applications to customers in various regions.RIM's projected 100,000 apps - a record for any new platform at launch - will still be a fraction of those available on Apple Inc or Google Inc devices.
But it is a stronger showing than RIM's PlayBook tablet computer which was slammed at its 2011 launch for a dearth of apps and incomplete software.
In an interview with Reuters on Wednesday, RIM Chief Executive Thorsten Heins admitted that app libraries play a crucial role in the success or failure of smartphones. But he said the game is not just about numbers.
"The tactic we are deploying is by country and by region. We are aiming to have the most important 200 to 400 apps available, because many applications are regional and they really do have a regional flavor," Heins said.
RIM says it aims to offer both the most popular applications in the market, and also those most relevant to Blackberry aficionados - people Heins described as hyper-connected multi-taskers who need to get things done.
RIM's ultra-secure BlackBerry was once the smartphone of choice for government and corporate elites. But rivals have taken giant bites out of RIM's market share, especially in North America, and the company's stock has slumped. The BlackBerry remains popular in many emerging markets, partly for its popular BBM messaging system.
With this in mind, RIM has hosted events with developers across the globe.
"We've done 30 jam conferences in various cities all around the world, to get the bucket filled with meaningful local apps and not just a huge bunch of applications that you collect and throw at your audience," he said. "It is a very, very targeted approach."
Heins, who has met with customers and carriers in a series of whirlwind global tours, came across as relaxed and confident in the interview, in RIM's Waterloo headquarters.
Speaking rapid fire English with just a hint of an accent from his native Germany, he acknowledged that RIM's fate may depend on the success of BB10, but he said feedback from clients has been very encouraging.
RIM hopes its new line of BB10 smartphones will help it claw back market share from Apple's iPhone and devices powered by Google's Android operating system. Developers say like what they see, but analysts are not convinced that RIM's gamble on BB10 will succeed.
Big name draws 
In terms of numbers, RIM's app offering will remain far behind the Apple and Google app stores, each of which boast over 700,000 apps. But Heins said he was not worried.
"In my view it is really short-sighted to say, you have 600,000, you have 400,000 and you only have 100,000 apps, so you are not good," he said.
"Look at how many actually get downloaded. ... BlackBerry App World today is still the most profitable portal for application developers - it has the highest number of paid for downloads."
In a small dig at his rivals, he added: "We don't have 1,500 Solitaire apps. That is not what Blackberry is about."
RIM has already said it plans business focused apps from the likes of Cisco WebEx, Box, SAP and Blackboard, as well as music and movie apps like TuneIn, Nobex and Popcornflix and gaming apps from developers like Gameloft, Halfbrick and Paw Print Games.
Heins has said social networks such as LinkedIn, Foursquare, Twitter and Facebook will all have apps for BB10 at launch. But he declined to name any of the other big name apps that RIM will have on board come launch day.
"Allow me to talk to you about this on January 30, otherwise I'm losing a lot of thunder," he said.

BlackBerry 10

BlackBerry 10 will fuel RIM's growth for the next decade: CEO

Reuters, November 15, 2012

A new line of BlackBerry 10 devices will provide Research In Motion with a framework for growth over the next decade, offering long-term value for unhappy shareholders, Chief Executive Thorsten Heins said on Wednesday.In an interview with Reuters, Heins said RIM had identified $800 million of the $1 billion of savings it promised for the financial year ending in early March, and was confident of finding the rest as it gets ready to launch the new phones.
RIM is betting that the new smartphones will help it claw back the market share it has lost to the likes of Apple Inc's iPhone and devices powered by Google's Android operating system.
Both consumers and corporate customers have abandoned the BlackBerry in droves, even though the devices offer security features that rivals have been unable to match.
"There's this high-level security that you cannot walk away from, and then there's 'good enough' security," Heins said in an interview at RIM's Waterloo, Ontario, campus, a sprawl of low-rise buildings.
But analysts remain skeptical, especially after the botched 2011 launch of RIM's PlayBook tablet computer, which the company had hoped would compete with Apple's wildly popular iPad. The PlayBook had top-of-the-line hardware, but its software was far from complete at the launch and needed multiple updates.
RIM delayed the roll-out of the BlackBerry 10 phones to the first quarter of 2013 so as not to repeat the errors that surrounded the PlayBook launch.
Heins said the delay was the correct decision - the way to ensure the BB10 phones are a high-quality product rather than a rushed one that would not meet customer expectations.
"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," Heins said.
Sleek demo models 
Sleek demo models of the new phones look much like the high-end smartphones in the market today, and company executives proudly showed off a touch-screen version and a version with the miniature QWERTY keyboard popular with many BlackBerry users.
Users flick a thumb or finger to maneuver from one program to another and can sneak a look at an incoming email while browsing the Internet or using other applications, a multi-tasking ability that RIM says rival devices lack.
Personal and business profiles can be kept separately, something RIM calls BlackBerry Balance. Corporations can erase only their share of the data on a device if they need to do so for security reasons, leaving personal photos, contacts and emails untouched.
The app library available at launch will not match the vast number available on other devices. Heins said RIM had chosen to focus on providing those apps needed in different regional markets. It expects some 100,000 apps to be ready at launch.
The developer community has been broadly enthusiastic about the devices. But financial analysts have mixed views on their likely reception in an ultra-competitive market.
Pacific Crest analyst James Faucette warned last week that BlackBerry 10 is likely to be dead on arrival - with an operating system that gets "a lukewarm response at best," due to the unfamiliar user interface and a shortage of apps.
Shareholder value 
Heins insisted morale was high at the company, despite 5,000 job cuts and a rapidly sliding market share ahead of the launch of the new phones.
RIM's share price is down more than 90 percent from a 2008 peak of about $148. It has fallen even after Heins, a former Siemens AG executive, took over in January. The shares on Wednesday closed at $8.49 on Nasdaq.
"The message to our shareholders is that we understand this is and has been a difficult time for them and for us," the tall, bespectacled CEO said. "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."
RIM has already given the demo phones to developers and to carriers, and its new BlackBerry Enterprise Server 10, which runs the devices on corporate networks, is in beta testing with 20 key customers -- both government agencies and corporates.
Next month, the company will give more than 50 top enterprise customers technical previews of both BES 10 and the devices.
Heins said the feedback he is getting from the customer base "is very encouraging."
With the erosion of RIM's base particularly strong in North America, there has been speculation the company could choose to launch the new phones in a region where the phones remain popular. Heins said that would not be the case.
"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," he said. "It is going to be a global launch. There isn't one preferred region. We are managing and planning it as we speak."