While the BlackBerry might be losing more and more ground to Apple Inc. (NASDAQ: AAPL) iPhone with each passing day, that doesn’t mean Research in Motion (NASDAQ: RIMM) is down from the count. In fact, according to a report from Bloomberg filed this past Friday, RIMM is set for a major counter-offensive against Apple — and it won’t just be with the fancy new Torch 9800 revealed today. Research in Motion is about to get into the tablet computer game with their new iPad competitor, the “Blackpad.”
Bloomberg’s Hugo Miller, citing “two people familiar with the company’s plans,” reported that RIMM will reveal the Blackpad tablet computer soon for debut in November. The Blackpad will sport similar form and functionality to AAPL’s device, with a 9.7-inch touch screen as well as both Wi-Fi and Bluetooth wireless communication technology.
Significantly different from Apple’s line of mobile products however, will be how Research in Motion’s devices will synch up. The Blackpad will allegedly be able to connect to the Internet by linking up with a user’s BlackBerry phone. Apple doesn’t allow iPad users to take advantage of an iPhone’s internet connection. The Blackpad will be priced in line with Apple’s device as well, with a rumored retail close to $499.
Evidence seems to authenticate Miller’s report. RIMM acquired the blackpad.com domain in June.
Popular opinion is that Research in Motion has seen better days. Their line of BlackBerry smartphones, tech that was considered the very cream of the cellphone, PDA, and handheld web device crop just a few short years ago, has been losing ground in the public consciousness since 2007. The BlackBerry is a failing concern in the face of stiff competition from Nokia (NYSE: NOK), Motorola (NYSE: MOT) line of Google (NASDAQ: GOOG) Android powered phones, and, most significantly, Apple’s juggernaut, the iPhone. This past April, RIMM shareholders grimaced as shares fell by as much as 7.4%. This came after their February reporting period, when revenue came in at $4.08 billion, far below the projected $4.31 at the time. As of the beginning of June, RIMM shares were down a total of 15% in 2010.
The Ontario-based tech company isn’t as poorly off as it seems though. While the BlackBerry’s share of the smartphone market has tapered off to just 19%, sales continue to be relatively strong. RIMM shipped 11.2 million BlackBerrys during the first quarter of 2010 and revenue has climbed to $4.24 billion since April, an increase of 24% over 2009. The new BlackBerry 9800 should also benefit from the recent negative press surrounding Apple’s iPhone 4. Early buzz surrounding the Blackpad is also good for the company. RIMM shares rose to 3.3 percent on Friday.
Whether the Blackpad comes to market this November, despite this positive press, remains to be seen. Other contenders for the tablet computer throne have announced products and then quietly withdrawn. Hewlett-Packard (NYSE: HPQ) was known to be developing a tablet computer powered by Google’s Android operating system and they were said to be positioning the device for a Holiday 2010 launch. Word came out on July 15 that HP had scrapped these plans entirely, though no one knows for sure why.
The Google-powered tablet joins HP’s planned HP Hurricane, a webOS tablet, on the company’s slate of would-be iPad-killers. Will the Blackpad suffer the same fate? We’ll know more soon.
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