Black Berry; World
When Mike Lazaridis and Jim Balsillie were running Research
In Motion, BlackBerry World was a chest-thumping celebration of RIM's successes
and a showcase for the innovations that would assure its continued dominance.
Their successor Thorsten Heins will preside over a very different event. Five
months after replacing the longstanding co - CEOs, Heins desperately needs more
time to right the now-struggling company and he likely has next to nothing concrete
to offer his restless audience in terms of new products and services. In late
March, Heins embarked on a strategic review of the Canadian smartphone maker's
direction in an effort to reverse the growing power of Apple Inc usa and Google
Inc's usa Android, and to thwart a budding Microsoft or Nokia resurgence. The company
is working furiously to get a next generation lineup of smartphones on sale,
while also seeking licensing deals, partnerships and cost savings of $ - 1 billion
this year. Unless Heins has a big surprise up his sleeve at this year's
Black Berry mobile World, held next week in Orlando, Florida, analysts expect him to
focus on products and services already in market. Most of them have so far
failed to capture the imagination of investors or consumers. "It's too
early in RIM's strategic review process to announce one particular
strategy," IDC analyst Kevin Restivo said. "However, Heins would be
wise to provide any kind of news to help staunch the bleeding." Restivo
expects RIM to tout any progress it's made in attracting developers and
possibly announce a PlayBook that connects to cellular networks. That would
make the 7-inch tablet more portable and give carriers an incentive to promote
the device.
Presentation delayed
BlackBerry World - which brings together several thousand
RIM partners and customers - was once a must for financial analysts. But this
year few are making the trip, in part because RIM has broken with tradition by
cancelling a specific presentation for them. Instead it delayed the briefing until
the next-generation BlackBerry 10s are on sale, sometime later this year. In
the year since RIM's last Orlando conference, the company has issued a string
of disappointing financial results, suffered an embarrassing global network
outage and watched its share price tumble by 75 percent. Lazaridis and
Balsillie quit under pressure in late January, replaced by Heins, a former
Siemens AG executive who ran RIM's hardware business for several years.
"Expectations are so low I don't think it's possible to disappoint
investors," said National Bank Financial analyst Kris Thompson. "The
conference isn't for investors anyway; it's for customers, developers and
partners." Thompson said RIM may use the event to introduce a marketing
chief, which he said was long overdue. RIM is also seeking a chief operating
officer. "The company needs to display confidence and staying power at the
show to keep this constituency loyal until the BlackBerry 10 smartphones are
launched," he said. Other RIM watchers privately pointed to subdued
comments from a major investor and new board member last week as a hint not to
expect much. Prem Watsa, who joined RIM's board in January's reshuffle, said
that a turnaround could take three to five years.
Looking ahead
The BlackBerry 10 devices will be RIM's first smartphones to
make use of a hardy operating platform from QNX Software, an Ottawa,
Ontario-based company that RIM acquired in 2010. RIM's first test of QNX was
its PlayBook tablet, which has languished on store shelves since its launch a
year ago. The company is eager to get software developers to build PlayBook
applications that could then populate an app store for the new phones. On the
sidelines of BlackBerry World, the company will hand out a prototype BlackBerry
10 device for developers to test their software applications. RIM has stressed
that the device's hardware bears no relation to the finished product. The
BlackBerry was once seen as an indispens
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