Research In Motion Ltd. looks set to play an unaccustomed game of catch-up with its next line of BlackBerry devices, as the technology leader borrows a page from some of its competitors to gain a foothold in the exploding consumer cellphone market in the U.S.
On Tuesday, one analyst offered a sneak peek at how the company could be planning to expand its product line with two new devices, including one with a touch-sensitive screen that could prove to be a rival for Apple Inc.'s iPhone.
There was a time not too long ago when RIM produced e-mail devices for the worlds of business and government — and virtually nothing else. But over the past 16 months the Waterloo, Ont.-based company has moved steadily and deliberately into the consumer space, beginning with the U.S. release of the Pearl device last September. The company is now broadening its offerings to include video and music, and estimates more than 30 per cent of its revenue now comes from the consumer side of the business.
Last week the company partnered with Wireless Giant to open its first standalone retail outlet in the Detroit suburb of Farmington Hills. Then on Monday, the company announced it would be establishing U.S. headquarters in Irving, Tex., just outside Dallas.
Tuesday, a pair of patent schematics showing what appear to be plans for two new BlackBerry devices surfaced in a research note by GMP Securities analyst Ray Sharma. One of the devices — dubbed the Touchscreen 1.0 in the note — features a touch-sensitive screen similar to the iPhone or the HTC Touch, as well as a rollaway keypad in the standard keyboard-style QWERTY layout, a BlackBerry staple.
The other device, the Pearl 2.0, is similar to the existing device of the same name, only with a standard numeric keypad that can rotate 90 degrees to offer a typing experience similar to the QWERTY set up.
Mr. Sharma is looking to February as a possible early release date for the devices, although it remains to be seen whether RIM will end up producing either of the devices.
The company did not immediately return phone calls Tuesday. "We believe that the next two generation BlackBerry devices will offer some interesting hardware enhancements that are positioned to target two markets; the touch screen and feature phone segment of the handset market," Mr. Sharma writes.
The move to the consumer market is a natural evolution for RIM, according to Info-Tech Research Group analyst Michelle Warren. However, with new devices will come added costs related to manufacturing, tech support and sales force education. "It's much more expensive," she said. "But it opens up the market for them and they are in a position where they can expand their offerings."
IDC senior analyst Chris Hazelton said smart phone manufacturers are beginning to migrate away from hardware-based typing interfaces — such as QWERTY keypads — and have started to embrace touch-screen, software-based interfaces that can be altered to suit specific applications.
"RIM is very secure in that it has this base of knowledge and experience building smart phones for hardcore users," he said. "What it needs to do next, and I'm sure they're working on this, is offer a flexible device that may offer a direct-touch screen."
RIM will announce its 2008 third-quarter results after the markets close tomorrow. Mr. Sharma expects the company to report $1.61-billion in revenue with profit at 60 cents a share.
