AP
Last updated 09:25 04/08/2010
The BlackBerry Torch.
Research In Motion has unveiled a new BlackBerry aimed at wooing consumers away from Apple’s iPhone and other rivals, but analysts said the handset won’t blow away the competition.
Even though the main features of the BlackBerry Torch, including a touchscreen and slideout keyboard, were well-known within the industry, investors registered their disappointment, driving RIM’s Toronto-listed shares down 4 percent.
The Torch will go on sale in the United States on August 12 for US$199.99 (NZ$270) with a two-year contract – about the same price as an iPhone. The new BlackBerry uses a revamped operating system and has a faster and easier-to-use web browser.
Vodafone New Zealand says it will be talking with RIM about the new BlackBerry, but cannot say how much it will sell for in New Zealand or when it might be available.
Underscoring RIM’s intention to compete head to head with the iPhone, the Waterloo, Ontario-based company will launch the phone in the United States with AT&T, the same carrier that has exclusive US rights to the iPhone.
Analysts at Tuesday’s launch event in New York said the Torch does not represent a major advance but that its consumer-friendly features were enough to help RIM to catch up to rivals.
“RIM is playing catch-up. This is clearly the upgrade for BlackBerry users, but otherwise not a lot here is super exciting,” Altimeter analyst Michael Gartenberg said.
The Torch does not represent a “leap forward”, but will help RIM compete with rivals such as iPhone and Google’s Android software, used in phones from several vendors including Motorola, said NPD analyst Ross Rubin.
“This gets the experience competitive again – if they can do that with the efficiency and stability that RIM is known for, then it’s a positive,” Rubin said.
Some analysts have said the Torch’s success will depend how heavily it is promoted by US telco AT&T, which said it collaborated with RIM on the device for thousands of hours.
AT&T described the device as the best BlackBerry ever but declined to say how much advertising the company will spend on the phone or how it would compare to the amount of money it spends on iPhone advertising.
“It will be as big a campaign as you’ve seen in some time,” Chief Marketing Officer David Christopher said.
BlackBerry’s nearly air-tight encryption has come under scrutiny in several overseas markets recently. The United Arab Emirates threatened on Sunday to ban some BlackBerry services unless RIM gives it access to encrypted messages. India’s Economic Times reported that RIM will allow Indian security authorities to monitor BlackBerry services.
RIM Chief Technology Officer David Yach declined to comment on discussions with specific governments.
“I believe they’ll have trouble pulling the trigger to shut down BlackBerry,” Yach said. “Most governments in the world rely on BlackBerry.”
NEW FEATURES
While the BlackBerry has long been the gold standard for corporate and government customers because of its speedy, secure email service, critics said it needs a big overhaul to expand its popularity beyond business customers.
One of the new features RIM touted is the ability to search any application, media content or contact by typing a word on in Torch’s “universal search” function.
BlackBerry Torch users can type messages on the screen or a slide-out keyboard. It comes with a 5-megapixel camera with a flash and a built-in GPS for location-based applications.
The new BlackBerry 6 operating system also offers an inbox where users can access updates from social networking sites like Facebook and Twitter in the same place as their emails.
“It’s a really special product because so much new goodness has been added to it.” said Mike Lazaridis, RIM’s president and co-chief executive.
The August launch was earlier than some analysts expected.
“I’m glad to see they got it out sooner rather than later,” said Nick Agostino at Mackie Research Capital. RIM’s success will depend on positive industry reviews and adoption by developers of applications, he said.
The Torch’s success could also hinge on RIM’s ability to convince software developers to create applications for the device. Analysts say a big part of the iPhone’s appeal is the huge choice of applications that it has to offer.
“Developers want to go where the consumers are and consumers want to go where the developers are. RIM is going to have to tell a very compelling story to attract the first batch of developers,” he said.
Article from: www.stuff.co.nz
Questions and answers about BlackBerry objections
By PETER SVENSSON – AP
Last updated 08:08 14/08/2010
Some questions and answers about foreign countries planning to ban the use of BlackBerry’s messaging and Web services:
Q: Which countries are involved?
A: India, Saudi Arabia and the United Arab Emirates have threatened to shut down some BlackBerry services in their respective countries. Lebanon and Indonesia have said they’re considering similar moves, but have no firm plans.
Q: Which services would be affected?
A. In general, the countries are targeting BlackBerry’s corporate e-mail service and the proprietary chat service, known as BlackBerry Messenger Service. Phone calls, text messaging and BlackBerry’s consumer service, which is not encrypted, would not be affected.
Q: Why are they going after BlackBerry?
A: In short, the corporate version of the BlackBerry system is too hard to eavesdrop on. The e-mails and messages are encrypted while in transit, and even Research In Motion Ltd., the Canadian company that makes the BlackBerry, doesn’t have the keys to decrypt them. The system is designed to keep corporate and government secrets safe, but the countries are concerned that it could provide cover for illegal activity.
Q: What is encryption?
A: Encryption is the process of “locking” a message so that only the intended recipient can read it, using a digital “key.” It’s widely used on the Internet. Without it, online banking and shopping would not be possible, nor any other sensitive communications.
Q: What can RIM do?
A: Not much. It has built much of its reputation in the corporate world on rock-solid security. To give a government wholesale access to e-mails on BlackBerry’s corporate service, it would have to dismantle its whole system in the country and rebuild it in an insecure fashion. BlackBerrys would have to be modified to not encrypt messages. RIM’s customers would move to other systems that still offer secure e-mail.
There have been suggestions that some countries, such as the Emirates, would be partly mollified if RIM places a server within their borders, meaning e-mails between local BlackBerrys would not have to leave the country while in transit. That could assuage any fears that other countries can spy on locals’ e-mail, even though doing so would be difficult if not impossible. Still, having a server in their own country wouldn’t make it any easier for their law enforcement to read the e-mails.
Q: Aren’t BlackBerry e-mails accessible to governments anyway?
A: Possibly, but not in a fast, easy way. The e-mails exist in decrypted form on corporate servers, but those may be overseas, and it takes time to get access to them through a legal process with warrants. RIM stresses that governments can satisfy national security and law enforcement needs without compromising commercial security requirements.
Q: What options to do locals and travelers have if BlackBerry services are shut down?
A: If they need secure communications, there are plenty of options, pointing to the futility of banning BlackBerry services. Business travellers can use their laptops to get secure corporate e-mails, or they can carry other smart phones, such as iPhones and those running Windows Mobile. Others can use encrypted Gmail connections, or standalone e-mail encryption programs.
However, Indian Internet service providers say the government is set to go after Skype SA and Gmail operator Google Inc. next, for access to their encrypted services. That would amount to large-scale attempt to undermine secure communications on the Internet.
Article from Stuff.co.nz