BB10 to Focus on Enterprise Clients - Analyst Blog


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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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: AAPL , GOOG , MDM , OS , RIMM

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