Thorsten Heins, Research in Motion CEO, discusses the launch of its newest device and how it will become a game changer in the smartphone wars.
By Roland Jones, NBC News
Once left for dead, BlackBerry-maker Research In Motion (RIM) is showing signs of life.
Late Thursday the company surprised Wall Street by issuing a better-than-expected earnings report for the second quarter. Yes, RIM posted another huge quarterly loss, but the damage was not as bad as many had feared.
That news has given investors something to feel optimistic about, driving the company?s share price up 6 percent since Friday morning, recouping some of the 90 percent plunge RIM?s share price has seen since hitting a recent peak in February 2011.
Is RIM back from the brink? Analysts say the Canadian technology company may have shown it still has a pulse, but the prognosis for the company remains as grim as a Canadian winter.
The better-than-expected report gives RIM ?some breathing room,? noted Mike Abramsky, principal at Red Team Global, telling CNBC that the good quarterly results don?t ?diminish the huge uphill battle? that RIM still has to face.
RIM holds the dubious distinction of being the most troubled smartphone maker -- in worse shape than even Finland?s Nokia. Both companies were once industry leaders, but have since seen their market shares and revenue crushed by the popularity of Apple?s iPhone and phones that run on Google?s Android software.
RIM said Thursday it is still losing market share in North America, but has gained new subscribers in developing markets, such as South Africa and India.
The growth in RIM?s subscribers may appear to be a positive development, but many of those new subscribers were acquired by selling RIM?s devices at a discount -- a strategy that is ?not sustainable in the long term,? said Will Power, a senior analyst at Robert W. Baird who covers wireless companies.
RIM may have acquired new subscribers with its older products, but a sustainable future for the company depends on the successful adoption of a new version of its once-ubiquitous BlackBerry, which is due for release in the first quarter of 2013.
That appears to be a formidable challenge for the company, analysts say, given that smart phone users have already switched to Apple?s iPhone and Samsung?s Galaxy, particularly in North America and Europe.
Appearing on CNBC Friday, RIM?s CEO Thorsten Heins touted the company?s newest device, saying it will be a game changer in the smartphone wars.
?There are many more steps to come before we launch BlackBerry 10,? Heins said. ?Then I think the market will be very excited by what BlackBerry 10 has to show, and what it will deliver to its customers.?
New devices coming
Heins offered some clues about the capabilities of the new devices, saying he thinks they will win back customers. The new BlackBerry will have a ?fantastic keyboard,? he said, and will allow users to run both applications for corporate and personal use, but still maintain RIM's famed?high level of security for corporate e-mail.
The strength of security in BlackBerry?s network remains a core competitive strength for RIM, and it could well be a reason for device shoppers to buy a BlackBerry 10 over a new Android phone, or Apple?s iPhone 5, said Red Team Global?s Abramsky.
It is ?still the most secure solution in the market place,? he said, adding that BlackBerry?s physical keyboard is one of the areas where RIM ?still has a unique cachet.?
?I don?t understand why they?re not pushing that,? Abramsky said.
There are still reasons to be hopeful about RIM, he added, noting that ?80 million subscribers is nothing to shake a stick at.?
But by continuing to challenge the dominant industry players, such as Apple and Samsung, there is a ?delusional aspect? to the company?s outlook, he said.
?It shows they are not positioning themselves for future success,? he said. ?RIM is not Apple by any state of the imagination.?
One direction for RIM to take might be to be acquired by another company, but Pacific Crest analyst James Faucette thinks time may be running out for RIM.
?[RIM] might be a motivated seller, but I don?t think there are a lot of motivated buyers out there,? he said. ?We think a lot of people are taking a look at it and taking a pass,? he added, noting that as the smart phone industry develops there will be ?fewer buyers, not more.?
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