Research In Motion on the Rebound

Published on August 29, 2011
by John Paczkowski

It’s been a tough couple of years for Research In Motion. But the company’s struggle to remain relevant in the market it helped create may finally be getting a bit easier.

According to Sterne Agee analyst Shaw Wu, the pair of new BlackBerry 7 devices the company recently launched leave it poised to regain the footing that it lost in the wake of the iPhone and Android onslaught. With better hardware and an improved operating system, RIM is finally giving its customers a decent reason to upgrade their handsets.

“We see RIM benefiting from arguably the strongest product cycle it has seen in some time driven by its new BlackBerry 7 OS,” Wu says. “From the early reviews, they are mixed to positive, which is a marked improvement than its predecessor BlackBerry 6 OS, which received noticeably more negative reviews.”

Add to this the continuing difficulties at rivals like Nokia, and RIM may well see its fortunes take a marked turn for the better.

“We believe RIM can capitalize on the disruption in Nokia as it transitions its smartphones to Windows Phone 7 from Symbian,” Wu says. “In addition, we are picking up from our industry checks that its launch in North America will not likely happen until 2012. The reason is that Nokia and Microsoft plan to launch internationally first where Nokia is stronger before entering the highly competitive North America market. We believe this gives RIM a window of opportunity.”

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