Article Summary: Time to Pick Blackberry Again?

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An International Management Applications Paper – Research in Motion (RIM)

Title of Article:“Time to Pick BlackBerry Again?”
Source and Date:The Wall Street Journal NOVEMBER 9, 2010, 1:44 P.M. ET


Summary of Article:

This article talks about why Blackberry maker RIM may still have hope in the smartphone industry; meanwhile acknowledging that there is no longer any debate that BlackBerry is yesterday's technology. According to the article, RIM's once irrefutable position among business and government customers shows signs of eroding, as rivals like iPhone maker Apple make inroads. Competitive pressure in the U.S. is likely to increase if, as expected, Verizon Communications’ majority-owned Verizon Wireless starts selling the iPhone next year. RIM's share of the smartphone market fell to 15.3% in the third quarter. In this environment, the impact of any piece of bad news is magnified. Hence RIM's Friday stock drop on news of Dell's unsurprising decision to replace BlackBerrys in its work force with its own phone. However, perceptions about RIM's technology competence could change quickly once its PlayBook tablet hits the market next year. The device will use software from QNX, recently acquired by RIM. Eventually QNX software is expected to be used in BlackBerry phones as well. Gartner analyst Ken Dulaney goes on to mention in the article that QNX gives RIM a "fresh start" with its operating system. The company could use it to solve its biggest problem: the lack of a touch screen interface as easy to use as the iPhone's, but it has to show it has the engineering expertise to take advantage of the opportunity. The article concludes by placing emphasis on the urgency of this taking place without too much delay as rivals like Apple continue to forge ahead consequently leaving RIM with major risks, and lastly that the stock may get cheap enough to deserve a second look.

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