A group of journalists, social media gurus and celebrities – or, as RIM RIM-T describes them, “influencers” – were invited to a posh Toronto lounge earlier this week to socialize, sample hors d’oeuvres and receive free BlackBerry Torches, RIM’s latest smart phone.
The snazzy launch party showcased the new consumer-centric face of a company once best known for its no-nonsense devices aimed at the enterprise, or corporate, market. Indeed, many at Monday’s event could be forgiven for believing RIM’s next big rumoured product – a “BlackPad” tablet computer to challenge Apple Inc.’s hyper-popular iPad – would be just as focused on the consumer.
But as speculation grows that RIM will announce such a product at its annual developer conference in San Francisco next week, it appears the future of the tablet may well reside in the business world – and that RIM’s future as the leader in enterprise mobile communications depends on it.
“There’s a big change that’s taking place,” says Alykhan Jetha, chief executive officer of Marketcircle, a Toronto-based firm that designs business software for Apple products and has recently begun working on iPad versions of its offerings.
“The laptop is a barrier [between users and clients], the tablet is much more friendly. It’s a much better relationship tool,” he adds. “[Corporate customers] are all over the iPad because of the business interaction aspect.
“I think [a tablet product] is an important step for RIM if they want to stay in the game.”
The Wall Street Journal reported Wednesday that RIM could introduce a seven-inch tablet computer as early as next week. Citing anonymous sources, the paper said the device will use a new operating system designed by QNX Software Systems, a company RIM bought earlier this year. According to the story, the tablet will come with Bluetooth and broadband connectivity, but will need a BlackBerry smart phone to get on a cellular network.
RIM has not commented on the release of the so-called BlackPad, or even confirmed its existence. Last week, RIM co-CEO Jim Balsillie said people would be “pleasantly surprised” by the announcements at the developer conference, but did not elaborate.
Even with an onslaught of tech firms jumping into the tablet market, a RIM tablet’s primary competition will likely still be the iPad.
One of the most surprising bits of information to come out of Apple’s most recent quarterly earnings conference call was about the iPad’s uptake in the enterprise world. According to Apple executives, half of Fortune 100 companies are already using or testing the tablet computer, which only went on sale in the United States this past April.
But even as the iPad hogs most of the tablet spotlight, a host of new contenders are entering the market. Dell and Samsung have both recently released tablets running on Google’s Android mobile operating system. Hewlett-Packard Co.’s recent purchase of smart-phone-maker Palm Inc.likely means the company will focus much more of its energies on the mobile devices markets, including tablets.
With the iPad focused – at least for now – on the consumer market, it’s likely that at least some of the new products will aim for the business market. Cisco Systems Inc., for example, is also working on an Android-based tablet designed specifically for business use and integration with the company’s handsets.
As hospitals, schools and other large institutions begin to see the potential of such mobile computers, RIM has a distinct advantage. Its BlackBerry smart phones have long dominated the enterprise market, making it easier for the tech firm to persuade companies to sync those devices with a tablet product.
“We’re very interested in watching the [RIM] tablet,” BGC Financial analyst Colin Gillis said. “One thing we’re looking for is the quality and the other is the take-up.”
Generally, RIM has seen a quicker pickup of its most recent devices in the consumer, rather than business, sectors. That’s in large part because consumers simply purchase the product, while large companies must first subject it to security tests and budget scrutiny.
However a growing number of observers believe RIM’s future growth – and its continued position as the enterprise mobile leader – depends heavily on a tablet-like product, especially if the company is to continue giving investors the financial results they came to expect during RIM’s first decade of existence.
“They gave monster guidance [during their last quarterly earnings],” Mr. Gillis said. “How many tablets do they factor into that?”
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THE COMPETITORS
If Research In Motion joins a host of tech giants and unveils a tablet computer next week, the smart phone maker will enter a burgeoning market that was once believed to be primarily focused on consumers. Increasingly, however, analysts and observers are discovering that the tablet might just be the next must-have business tool.
Research In Motion
Device: The BlackPad
Released: RIM hasn’t said anything about the product’s release date or even confirmed its existence, even as rumours of the tablet spread.
Size: Believed to be seven inches.
Pros: The ability to closely sync the tablet with BlackBerrys will make it a much easier sell to RIM’s traditional strong suite: the enterprise market. Any RIM tablet will also likely include stronger security features than other mobile computers, making it more appealing to the corporate and government sectors.
Cons: A brand-new operating system might be a good thing in the long run, but if the BlackPad requires application developers to rewrite a lot of code, it may be a while before RIM’s tablet sports a good mix of killer apps.
Apple
Device: The iPad
Released: April
Size: 9.7 inches
Pros: As it did with the iPhone, Apple has taken the early lead in the consumer tablet market with the iPad. The device has been a hit with consumers, but a number of major firms are also testing or using it. Although most of the apps designed for the device are consumer-focused, a number of business-centric apps are on the way. Alongside the iPhone, Apple now has a two-pronged mobile solution to offer companies.
Cons: Apple’s range of new mobile products has always been associated far more closely with fun, rather than business. Its inability to support Flash video and its limited multitasking make the iPad a less-than-stellar tablet solution for many companies.
Device: Myriad products from Dell, Samsung and a host of other tech firms
Released: Several devices are already on the market, with at least a dozen more expected in the coming quarters
Size: Varies by model
Pros: Google’s open-source Android operating system gives companies an easy entryway into mobile devices because it saves them a lot of research and development money. In addition, Google tends to unveil their latest search innovations on Android-powered devices. The surge of Android tablets in the coming quarters should give enterprise customers a variety to choose from, and potentially greater customization options.
Cons: The rush of Android smart phones to the market has made it more difficult for individual companies to differentiate their products from the rest of the pack. The same risk exists in the tablet market. Unlike in the cases of RIM and Apple, there is still no clear defining tablet product running on Android.
Omar El Akkad
