While Research in Motion is optimistic that their new platform would turn their fortunes around next year, analysts warn consumers to lower their expectations, saying that Blackberry 10 could be another flop just like the company’s Blackberry Playbook.
The new Blackberry 10 platform has been well-received by several wireless carriers, but Wall Street still questions the strategy of RIM over their new operating system.
Wedge Partners analyst Brian Blair said: “We saw similar optimism around the PlayBook ahead of its launch and we think recent sentiment about BB10 performance in the market is again too optimistic. We don’t see any scenario where the new device could make a meaningful dent in the consumer or enterprise market next year.”
Blair pointed out that recent reviews revealed that the BB10 has no distinct feature that will make a huge impact in the consumer market especially considering the fact that other major players in the smartphone market will also make their own significant moves next year.
Blair reasoned out: “RIM will be offering an entirely new OS, a brand new UI and experience to its user base. And when compared to the other major players in the smartphone market next year, we don’t believe that BB10 will offer anything more than the existing options. In fact, we expect most reviews of BB10 to confirm that it offers less. And unless the price points are substantially lower than existing offerings, it will be a very tough sell once it’s on the shelves.”
Pacific Crest analyst James Faucette also shared the same opinion as Blair, saying that RIM will not hit their projected target mainly because of the strong competition in the already-tight wireless consumer market.
But while most analysts doubt the capability of Blackberry 10, CNET’s Roger Cheng said that it is improper to compare BB10 to the PlayBook. He pointed out that the tablet was “rushed out of the door” in order to compete with Apple’s iPhone, which is different from the case of the Blackberry 10 that was developed for more than two years.
Jefferies and Company’s Peter Misek, who previously blasted RIM, also had a favorable projection, predicting that the company’s stock could rise up to as much as $43 per share next year.
RIM will launch the new Blackberry 10 platform in a press conference scheduled on January 30 in various locations.