Research In Motion to become big player in handset industry
David George-Cosh
Province
RIM is honing in on Apple iPhone’s smart phone market.
Research In Motion Ltd. appears poised to enter a renaissance period of market expansion after details of the smart-phone maker’s oft-rumoured “iPhone killer” were revealed this week.
With media reports all but confirming a new BlackBerry “Thunder” model — a touchscreen device said to compete directly with Apple Inc.’s popular iPhone smart phone — RIM has at least three new handsets set to be released within the next year, with analysts suggesting more may be on the way.
RBC Capital Markets telecom analyst Mike Abramsky said a “slider” BlackBerry, a clam-shell model dubbed the “Kickstart,” the Thunder model and different configurations of touchscreen interfaces and handsets similar in style to its hugely popular Pearl model are set to join the BlackBerry Bold 3G device announced earlier this week.
“I don’t think this is the end of the innovations that [RIM’s] going to emerge with to maximize the broader consumer handset market,” Abramsky said.
“The most exciting thing about this industry right now is that the kinds of changes we are witnessing and participating as consumers are more profound than prior technology cycles like the Internet. And RIM is square at ground zero of that.”
The Wall Street Journal said it had confirmed details of the BlackBerry Thunder, which were earlier reported from a gadget blog. The Journal said the device is to be sold in the third quarter of this year through Verizon Wireless in the U.S. and Vodafone PLC overseas.
“It is clear to us that RIM is laying out a strong foundation to become a much bigger player in the handset industry,” UBS analysts Maynard Um and Jeffrey Fan wrote in a note to clients.
“We view new form factors as the first step toward becoming a larger player within the smart phone industry and believe carrier promotions will also help to drive unit volumes.”
RIM declined to comment on the touchscreen device, citing a company policy regarding rumours and speculation.
Rob Enderle, president of market research firm The Enderle Group, calls RIM’s touchscreen device the beginning of a bullish run at the global handset market.
“It’s a broad attack,” Enderle said. “Much like how Apple has been shifting from their initial approach in multimedia approach to corporate, RIM is going the other way.”
Both Enderle and Abramsky cite struggles by rivals Motorola Inc. and Nokia Corp. as a window of opportunity for RIM to emerge as a key player in the mobile phone industry. According to Abramsky, the global smart phone market is expected to experience quadruple growth by 2010 to reach 400 million devices.