A high-end, higher-priced BlackBerry with that will work with HSPDA cellular networks is due out this summer.TORONTO (Reuters)
- Research In Motion Ltd is launching a new high-end version of the
BlackBerry aimed at its core base of business users, but it hopes the
sleek new smartphone will also catch on with the broader retail market.
Shares of RIM jumped on Monday, climbing C$8.76, or 6.6 percent, to
C$142.11 on the Toronto Stock Exchange. On Nasdaq, the stock was up
$8.84, or 6.7 percent, at $141.61.
The BlackBerry Bold, as the new smartphone is called, is the first
BlackBerry to support high-speed HSDPA cellular networks and comes with
integrated GPS, Wi-Fi and a host of multimedia features.
"It's really a step up in function in many core aspects of the system," RIM Co-CEO Jim Balsillie said in an interview.
The smartphone rolls out globally this summer and will cost between
$300 and $400, he said. AT&T will be its lead carrier in the United
States.
Citi Investment Research analyst Jim Suva wrote in a note to clients
that the timing of the launch of the third-generation smartphone was
ahead of his expectations. Third generation, or 3G, essentially refers
to advanced and high-speed wireless services.
"We had expected a 3G device later this year," he wrote. "We
estimate the Bold could increase RIM's quarterly shipments by 200,000
to 400,000."
While Waterloo, Ontario-based RIM hopes the Bold will entice
corporate users to upgrade the handsets they currently use, Balsillie
said he "wouldn't be surprised if it gets picked up by the consumer."
The device will be a test of whether the shaky U.S. economy is
making corporations less willing to spend on new wireless hardware.
Some analysts have expressed concern that companies will delay upgrades
or cut back on spending on items such as the BlackBerry.
RIM helped dispel such worries last month when it delivered a higher fourth-quarter profit and a robust outlook.
UBS analyst Jeffrey Fan wrote in a note to clients he expects the company to launch between three or four new devices this year.
"We believe RIM's broadening portfolio should widen its appeal to the mass market," he wrote.
The Bold features the most vivid display ever on a BlackBerry, a
2-megapixel camera with video recording capability, and a media player
for watching movies and managing music collections.
This isn't the first time a BlackBerry has been loaded with
multimedia features to catch the eye of the retail customer. RIM has
actively worked at diversifying its client base away from the
executives, lawyers and other professionals who use the BlackBerry for
sending secure wireless e-mail.
More than a third of RIM's 14 million subscribers are now classified as nongovernment and noncorporate.
The company has also rolled out customer-oriented applications such
as Facebook software specifically designed for the BlackBerry. Last
month, RIM said downloads of the application had topped the 1 million
mark.
And in a separate announcement on Monday, RIM and Microsoft said
they will provide Microsoft Windows Live services such as instant
messaging and e-mail on the BlackBerry.
Its pursuit of consumers has put RIM in increasingly direct
competition with devices such as Apple's iPhone, which target the broad
retail market.
Still, Balsillie said the Bold is aimed first and foremost at the business, or enterprise, audience.
"It's pretty fair to say that the Bold does quite a job for
cementing our leadership in the (enterprise) side," he said. "We
understand our roots and we understand the priority there."
RIM also announced that, along with Royal Bank of Canada and Thomson
Reuters, it will launch a $150 million venture capital fund that will
invest in applications and services for the BlackBerry and other mobile
platforms.
($1=$1.00 Canadian)
(Reporting by Wojtek Dabrowski; editing by Peter Galloway)
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