Is BlackBerry producer Research in Motion making a comeback in the electronics industry?
The company recently released its second quarter earnings report and the numbers were better than anyone on Wall Street expected. Even though they lost money, the amount was not as big as many people thought it would be.
Company shares rose by 6 percent, recovering a portion of the 90 percent drop in price since they reached their peak during February 2011.
Analysts believe the company is experiencing a slow recovery but the prognosis is still grim.
According to Mike Abramsky of Red Team Global, the company is still facing an uphill battle despite the positive results.
RIM is still trailing other smart phone companies, behind even Nokia, in a market dominated by the Apple iPhone and products that use Google’s Android software.
Even though the company’s market share has dropped in North America, it is making strides in India, South Africa and other developing markets. A large number of those new subscribers purchased them at a discount.
BlackBerry 10 Debuts Next Year
Whether or not the company will survive depends on whether the new BlackBerry, scheduled for release in early 2013, experiences a successful roll out.
Many analysts expect it to be a hard sell with so many smartphone users in Europe and North America having already purchased the Samsung Galaxy and the Apple iPhone.
Thorsten Heins, RIM CEO, told CNBC he expects consumers to embrace the BlackBerry 10.
Heins revealed the new device features a “fantastic keyboard” and offers users the option of running applications for personal and corporate use while retaining the superior security necessary for corporate e-mail use.
Abramsky noted the BlackBerry still has the most secure system available and the physical keyboard is a unique feature. He pointed out that the company’s 80 million subscribers is something to be proud of but their outlook is delusional given the fact that Samsung and Apple are dominating the industry.
James Faucette, a Pacific Crest analyst, does not believe acquisition by another company is feasible because the number of motivated buyers is dwindling as the industry continues to develop.
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