Waterloo Ontario based Research In Motion Limited (NASDAQ:RIMM) is betting that the new devices scheduled to launch coming January will help it regain its share as a market leader in the Global Smartphone industry. The success of new Blackberry BB10 mainly relies on response from corporations and government agencies which constitute the high end of Smartphone market around the world.
The new device launch will be followed up by a whole new range of applications for the faster and smarter devices. Not to mention RIMM’s recent applications are only compatible with the latest devices. Existing users will have to switch to the latest version in order to enjoy new features.
The company successfully maintained a strong position in the low end smart-phone market of developing nations but has faced severe problems selling to developed nations. Through the launch of these two touch screen, QWERTY devices the company hopes to mark its retreat and reap the dollar advantage from the richer part of the world. The company will initially launch only one of the two devices while the second one will await its debut later this year.
The enterprise segment, which includes both private and public sector clients have been risk averse lately. Taking up the challenge to convert pragmatist laggards into keen innovators with a aging product line is a long shot for Research In Motion Limited (NASDAQ:RIMM). It seems the company’s fate is tied to the success of BB10 failing this might leave no hope for future growth of Smartphone market pioneer. The stock market sentiment is in favor of the BB10 and many experts have betted their numbers for the device’s profit potential.
BlackBerry 10 Ready Program is the company’s way to prepare ahead for the challenge ahead. Senior director Bryan Lee termed the program as a “lynchpin” for transition to BB10 platform”. He also said that his company is committed to aid the changeover of enterprise sector clients to the new platform by “preparing their existing environments for the new mobile computing platform,”.
According to Lee the two months long programme includes many services, tools and special offers. It will introduce the device to public and private sector clientele through a phased approach. Initially online training through webcast tutorials will be used to create awareness of various features. A free upgrade to BlackBerry Enterprise Server and BlackBerry Enterprise Service 10 will be offered ahead of the commercial launch to ensure smooth transition to a new platform.
Lee also quoted the tremendous excitement among the customers from enterprise segment as they prepare to transition for the new platform, but declined to put number on the readiness of customer base ahead of the launch day.
BlackBerry Enterprise Server 10, that will run the device on corporate networks, is currently in beta testing phase with more than a dozen public and corporate sector clients and the initial response is generally positive.
Not much can be said on future business prospects unless a feedback response starts pouring in from carriers and developers. An anxiously awaiting stock market is divided in their opinion over profit potential underlying Research In Motion Limited (NASDAQ:RIMM) shares. Scott Penner from TD Securities raised target price to $12 said the company is yet to encounter more “significant hurdles ahead.” While he and many others upgraded ratings and price targets in anticipation of BB10 success, those wary of the product’s star potential chose to remain risk averse,
Shares of Research In Motion Limited (NASDAQ:RIMM) were up by 1.01% to $12.01.
For consideration of being featured on WallstreetPR, contact: Editor@Wallstreetpr.com
