Samsung Galaxy S3 was released in May. Unsurprisingly, many have sold their BlackBerrys and bought this technological wizardry. It is the current best-selling smartphone in history. Impressive hardware, larger HD screens, and a multitude of Android apps make this phone a must-have. However, months later, Apple launched its iPhone 5 with a bang last September. The so-called “iPhone 4S 2.0” created a wave of demands and pre-orders reached millions. Although Apple’s stock has started to slide, the iPhone 5 is still a hit with smartphone lovers and users alike. What about RIM? Well, the company is expected to launch its magnum opus, the BlackBerry 10. Your bosses have been anticipating this phone for months. However, they are expected to wait longer.
A senior analyst doubts that the phone will launch sooner than expected. The analyst warns investors that this delay could mean more losses for BlackBerry manufacturers. Peter Misek, the analyst at Jeffries and Co., says “we were expecting a January launch, but now we see a March launch more likely.” He believes that because most carriers prefer other smartphone brands like Samsung and iPhone, RIM may have to lay a good foundation to get a lot of the carriers’ inventory. Doing so will take a long time as they haven’t tested how strong the demand for BlackBerry 10 is. They also need to look to third-party companies like HTC and Samsung to license their operating system for phones. However, this will most likely slow down the process. Misek sees that RIM will not have partners for this much-needed effort. This will result in investors putting more of their money into BlackBerry 7 phones which is sure to eat into RIM’s bottom line. Would this result in people trying to sell used BlackBerry units?
The delay will again result in financial losses. The company relies on its $2.3 billion to meet the financial inability to catch up on revenue. Misek predicts that he needs a billion more just to make enough units to eventually pay off his financial obligations and launch his newly developed operating system. The delay may be a blessing in disguise for BlackBerry. The analyst creates a particular analysis that this is what RIM needs to catch up with the heavy hype of flagship smartphones. Misek points out that the Canadian firm will not erode enough for Microsoft to invest and capitalize on its Windows Phone 8 smartphones (considered third parties due to weak consumer demand). He says: “We think a third ecosystem will emerge, but the likelihood of BB10 playing the role depends entirely on whether RIM can convince Samsung, Huawei and ZTE to license it.”
RIM executives have brought consumers some of the amazing features that BlackBerry 10 has to offer. Its apps and servers are exclusive and improved and will debut with RIM’s future smartphone. Although many people sell used BlackBerrys, RIM is hopeful that its BlackBerry 10 will be its redeemer from the chains of criticism, financial losses and consumer distrust.
