Research In Motion Ltd. unveiled a new version of its popular BlackBerry device Tuesday in a move analysts say marks a big step toward creating the first handheld computer.
The Blackberry 8700c is smaller than the current model and offers new telephone and e-mail functions. But analysts say its most important feature is that it will be the first handheld unit to run on new high-speed technology developed by Intel Corp.
The 8700c “can do a lot more and do it a lot faster than older versions of their handsets,” said Carmi Levy, senior research analyst at Info-Tech Research Group in London, Ont. “This is the first of a generation that can finally come close to desktop and laptop computers in terms of power.”
Waterloo, Ont.-based RIM is banking on the new Blackberry, the first significant change to the device in three years, to deflect attention from the company's patent infringement case in the United States with Virginia-based NTP Inc. That legal battle has driven RIM's share price down nearly 30 per cent on the Toronto Stock Exchange in the past 12 months.
The company launched the 8700c, code named Electron, Tuesday in New York with long-time partner Cingular Wireless LLC. The 8700c will cost $300 (U.S.) and it will be available in the United States starting Nov. 21 through Cingular.
The company said the unit will run on Cingular's EDGE (Enhanced Data Rates for Global Evolution) network, an advanced system that allows faster data access from wireless equipment.
“This is a major step forward in wireless innovation,” said Jim Balsillie, RIM's chairman and co-chief executive officer.
The 8700c will have Blackberry's traditional e-mail and telephone features, including speaker phones, and a longer battery life. RIM said the unit has 16 days of battery capacity, about twice the current 7200 model.
“Management expects this to be the company's most successful product launch ever and suggested that it was experiencing ‘unprecedented interest,' ” Peter Misek, an analyst at Canaccord Capital said in a report Tuesday.
Mr. Misek added that the new BlackBerry will be less expensive that its main rivals from Palm Inc. and Nokia Corp., and said it “represents the most compelling performance-to-price value in the market today.”
Since its introduction in 1999, the BlackBerry has remained primarily a portable e-mail device.
Telephone services have been added but the product has been largely unchanged over the years, which has helped drive its popularity. However, rivals such as Microsoft Corp., Palm, Motorola Inc. and Nokia have stepped up competition with their own versions of the device.
Mr. Levy said that while the 8700c builds on the traditional model, the introduction of the Intel system means the device will be capable of much more. He said it will soon be able to run sophisticated programs such as inventory management.
“It will be able to run very rich, very powerful applications, whereas the older devices were much more brain dead than this one,” he said. “RIM needed some good news and this release clearly is good news”
