Torch May Not Guide RIM Through the Tunnel

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The BlackBerry Torch 9800 has person's name widely viewed as Research In Motion's (Nasdaq: RIMM) the majority excellent blast at regaining still footing in its battle by means of rivals Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) in the smartphone arena, but following now a few existence on the market, the device's cost has by now person's name slashed.

Some 150,000 of the handsets now sold in excess of the weekend, normal to a report in The Wall Street Journal -- a far cry as of the 1.7 compensation iPhone 4 units Apple supposed it sold in its primary inquisitiveness days. AT&T (NYSE: T) is advertising the device for US$199.99 by means of a two-year contract.

However, information surfaced Monday so as to Amazon (Nasdaq: AMZN) had slashed its sale cost to now $99.99.

That has the marketplace worried.

'The Same Old Tired Device'

"BlackBerry Torch Fizzles," appreciate writing one headline on Tuesday, for example.

"Has the BlackBerry Torch flamed out already?" assembly another.

Indeed, "this was hypothetical to be the device so as to allowable RIM to punch completely way rear onto the relevance map, but in its place it attention similar to it is turning eager on a improved account of the similar old weary device," telecom and wireless analyst Jeff Kagan told the E-Commerce Times.

'Not Enough Yet'

"RIM has challenges," Kagan asserted. "They are the king of the smartphone hill, but so as to hill is receiving on fire each quarter. Apple by means of the iPhone and Google by means of the Android are the genuine growth heavy of the smartphone marketplace today."

RIM "does be familiar with so as to present are genuine threats construct might alter the leadership in the industry, and contain are trying, but contain now lined appear to go,shift the innovative mark," Kagan explained.

When RIM customer its primary touchscreen in the BlackBerry Storm rear in 2008, "we consideration petroleum might be the device so as to the distance end to end of not any to greatness again," Kagan said. "Not so."

Same weapons for the Torch -- "so far, at least," he added. "Early reports say petroleum new operating scheme and device may not be sufficient yet."

'Long-Term Use Matters Most'

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On the additional hand, "no substance how extended the lines are the day a device weapons on sale, the information of the substance is so as to as,at the same occasion as extended lines and demand are driven by hype -- not consequences populace in fact similar to the device," Allen Nogee, main analyst for wireless skill and infrastructure by means of In-Stat, told the E-Commerce Times. "No substance how a great deal you engage in recreation by means of a phone in the phone store, it's the long-term use so as to matters most."

RIM's previous "flashy distinguished open was the Storm," Nogee pointed out. "While I keep in mind extended lines and physically powerful demand for so as to device initially, in excess of occasion a lot of bugs came to the surface -- and a lot of populace now not extremely happy."

It's possible, then, so as to "many populace so as to saw the difficulty by means of the Storm are now knowledge as of the knowledge and existence form a great deal additional hesitant to bound on a RIM device extremely close to the beginning on," Nogee suggested. "The Storm let go may contain tarnished RIM's image, and a lot of are captivating a wait-and-see attitude."

'BlackBerry Users Tend to Be More Conservative'

The BlackBerry Torch is too not the primary or merely phone so as to has person's name steeply discounted almost immediately following its arrival, as one Fortune blog noted on Tuesday. In fact, the Sony Ericsson Xperia X10 now had its price slashed merely one day following its release, the blogger pointed out.

There's the substance of consumer demographics, Nogee added.

"BlackBerry funding be inclined to be additional conservative and use a BlackBerry since it ,court case the the majority excellent answer for them," he explained. "Typically as,at the same occasion as aren't the similar populace so as to require the newest cutting-edge device."

iPhone funding and close to the beginning Android adopters, by contrast, "tend to be younger folks so as to love technology," he added.

$171 in Components

Still, "RIM's prospect glue on it keeping its obtainable client bottom as,at the same time as attracting additional users, so the reaction to new devices similar to the Torch is extremely significant to the company," Nogee concluded.

There's too no denying so as to a $100 cost tag doesn't wrap the cost of creation the smartphone. Taken together, in fact, the Torch's components cost $171 per phone, advantage $12 for manufacturing, normal to a Wall Street Journal report citing estimates as of iSuppli.

So come again? be hypothetical to RIM do next?

'RIM Has to Change'

"First you contain to fix the difficulty -- after that you can create to rebuild," Kagan said. "RIM has to make a device and operating scheme so as to clientele love. Then contain can create to rebuild in the U.S. marketplace."

RIM determination too contain to "put jointly an astonishing community relations agenda to construct shortfall rear up again," he added. "They now missed on all inquisitiveness key punitive so far.

"Is RIM in problem leaving forward? Not yet, but contain might be," Kagan concluded. "They are not heading in the correct way yet. Customers are second-hand to the astonishing ,advertising as of Apple and Google -- the more often than not additional quiet RIM has to change, or contain determination lose."

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