Add to del.icio.us     Digg this

July 22, 2010

Ever since it went into business, Research In Motion mostly has concentrated itself towards the enterprise segment of the mobile industry, targeting businesses on the move and making sure they stay well connected to their offices at all times.

And that's a great business model. But now RIM wants to make sure that the consumer segment is well taken care of as well.

RIM said late yesterday that it is launching its new BlackBerry 6 operating system, and that the new OS will have some cool new multimedia features that is sure to appeal to the general consumer market, while at the same time it will retain all the important business features that Blackberry owners love to use everyday.

In a blog post on its official blog yesterday, RIM talked about the new multimedia features that will play a major role in the success or failure of its new OS.

RIM's ability to stay relevant in a market dominated by Apple's iPhone will rest heavily on these new features and in the way it will try to position itself as a modern media hub that can hold its weight with the typical consumer.

The Blackberry new OS 6 will be an evolutionary step from the current offering, which might leave the company resting on its traditional stronghold areas for continued growth. RIM still holds an enviable market share in the smartphone market. Last month, RIM also reported some very strong first quarter earnings.

Research In Motion first introduced some new features of its BlackBerry 6 OS at Mobile World Congress back in February and ever since then information from the company on the Blackberry 6 has been very scarce.

But yesterday company officials finally detailed how it's going to offer its Java Virtual Machine-based OS to better meet the needs of multimedia consumers on the go.

RIM officials also said that the company will continue to provide more details about the BlackBerry 6 in the coming weeks, which coincides with the widely anticipated release of its latest device that features both a touchscreen and full Qwerty keyboard in a slider form factor.

The release date for what is supposed to be the Model 9800 still isn't known yet, but some expect it to come before the end of the current quarter.

Upgrades come in the form of an improved visual appeal, but there are some new features that will be well received just as well. Also, photos and videos will be easier to organize by date or event and pinch-to-zoom will be supported on all touchscreen BlackBerrys.

The company also said the new OS 6 will come with improved camera features and options that will be available on screen rather than deep in a menu like they are today.

The Waterloo, Ontario-based company also announced some new discoverability features that will allow users to explore music, video and pictures apps from the main menu within the media player.

This might help improve the consumer experience with BlackBerry App World, but much more work is going to be required on that platform before it reaches the popularity and reach that the iPhone currently enjoys.

On June 25, Research In Motion reported first quarter earnings that beat Wall Street estimates but missed analysts’ targets on overall revenue.

RIM also announced a share repurchase plan for its stockholders. The company also projected second quarter revenue between $4.4 billion and $4.6 billion, in-line with analysts' estimates of $4.5 billion for the quarter. Second quarter earnings are expected to be between $1.33 to $1.40 per share.

Gross margin for Q2 is expected to be approximately 44 percent and net subscriber account additions are expected to be between 4.9 to about 5.2 million.

RIM also added 4.9 million net new BlackBerry subscriber accounts during the first quarter, bringing its total BlackBerry subscriber account base to about 46 million.

Almost 80 percent of the company’s revenue comes from device sales of its popular BlackBerry smartphone.

For the quarter, the company reported revenue of $4.24 billion, up 24 percent from the year-ago quarter. Net income came in at almost $769 million, or $1.39 per share, up from the $1.10 per share reported in the year ago quarter.

Wireless industry analysts had been expecting earnings of $1.34 a share on revenue of $4.36 billion.

In a statement, the company's CEO Jim Balsillie said "RIM achieved significant earnings growth and shipped a record 11.2 million devices during the first quarter, including its 100 millionth BlackBerry smartphone."

"We continue to be focused on growing our business globally and we believe that the range of exciting new BlackBerry products being released in the coming months will create significant opportunities to accelerate RIM’s growth in the second half of 2010," added Balsillie.

Add to del.icio.us     Digg this

Source: Research In Motion.