Struggling smartphone manufacturer
Research in Motion Limited
(
RIMM
) announced that it is trying to develop a robust and secure
Blackberry messenger service for its enterprise customers in its
much-awaited smartphone based on BB10 operating system (OS). On the
basis of this upgraded feature, the company is trying to win new
customers, whose secured email service is still a hit among
corporate clients, but expects competition from other players.
Research in Motion added that this new mobile device management
(MDM) feature is capable of supporting other OS like
Google Inc.'s
(
GOOG
) Android and
Apple Inc.'s
(
AAPL
) iOS, which in turn will help the company to reach out to the mass
market.
The Canadian company is betting on its new Blackberry 10
OS-based devices, which are slated to release in the first half of
2013 as a potential game changer for them. The company's new
software will help customers to distinguish their personal and
professional functions within the phone itself and is a unique
feature within the communication industry. Additionally, the
company has been tying up with various application developers to
develop content and applications for its upcoming smartphone.
The Waterloo, Ontario-based company is facing severe problems
due to an increasingly competitive landscape, primarily from
Apple's iPhone and an array of other smartphone manufacturers
running on Google's Android platform. However, Research in Motion
announced that based on an improved performance in the emerging
markets, its subscriber base has increased more than 2.5% in the
recent quarter which is expected to bring some respite for the
company.
For a company, which has 80 million customers worldwide with
almost 90% of the Fortune 500 companies as its corporate customers,
concentrating on business enterprise will only help it to
collaborate with newer clients. We believe BB10 coupled with this
new developed feature could lure more enterprise clients, failing
which can have serious implications on its growth going
forward.
We maintain our long-term Neutral recommendation on Research in
Motion. The company also retains a Zacks #3 Rank, implying a
short-term Hold rating.
APPLE INC (AAPL): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis
Report
RESEARCH IN MOT (RIMM): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research