Research In Motion's iBerry?

I was thinking about getting a new blackberry from Research in Motion (RIMM) for my birthday next year and just in time, a neat little device is being planned.

From Unstrung:

The 9000-series is described by Carmi Levy, an analyst at AR Communications Inc. , as "the future of the BlackBerry franchise," a complete breakaway from the device's business roots. Instead, the new series targets the consumer space served by the Pearl and Curve models.

"The 9000 is supposed to be a touch-screen device, very similar in form factor to the iPhone," Levy says. "Which means that it is not an enterprise-friendly device."

The 9000 series will break from the traditional half-screen, half-keyboard look of the BlackBerry. The handsets will also incorporate an upgraded multimedia system, along with the standard push email capabilities. Better MP3 and video capabilities are crucial if RIM is to take on Apple(AAPL), Google (GOOG), and others.

Levy speculates that RIM will introduce the 9000-series in the first quarter of next year. "They were originally shooting for the second half of 2007," he notes. The touch-screen devices, however, won't mean the end of the line for the 8000 series, because businesses will still need devices with proper QWERTY keyboards. "There will be incremental updates. They won't disappear," Levy says.

Among the updates will be "a Curve with WiFi," according to Levy. These devices may have other updates like GPS location tracking and higher resolution onboard cameras as well.

I have toyed with an iPhone from Apple but just disdain AT&T (T) slightly more than my carrier Sprint (S), so that rules out Mr. Jobs' (had he not tried to screw every penny out of the device he would have sold millions more of them). Since I am pretty sure the price of my leaving them would be a child, I am going to stay with Sprint for now. That and their network is leap and bounds better than the "T's" is.

I am very intrigued by this phone and cannot wait to see and try it. A new phone is in the cards for the bday and this just might fit the bill.

Comments

[Hayweed]

Dude:

You write this piece as if an iberry is on the way. Read the boygeniusreport www.boygeniusreport.co.../

He supposedly broke this story ages ago and now thinks it is bunk.

Plus, why would Rimm make a touch device with no keyboard. The keyboard is what makes the blackberry work. An iberry would be like Starbucks not using milk.

Still short Rimm and happier every day

[jswede]

"happier every day"?

RIMM up 15% in last 10 days...

[Hayweed]

The stock swings. On 11/20 this was a $115 stock that fell to 105 then rallied to 117 then back below $110. I covered some today at $110.50 that was shorted much higher.

Verizon news today about opening up their system to allow Google phones further screws Rimm. Listen to Rimm management and they are all about getting in tight with the carrier. But now one of the biggest carriers is saying we will have an open network. That means phones will the Google operating system. MSFT complains that the carriers limit their ability to make a mobile operating system.. So now they can go at full tilt. Apple could port some or all of their operating system on phones to other manufacturers if they wanted. All of these things are negatives to Rimm's consumer push. The business side is fine. But without the consumer phones Rimm is a $50 stock.

[John Lazerow]

Keep believing this, and keep shorting the stock. You can't be "happier every day" after today's close over $121. The high was around $135, so at this point, the best you could be up is 10% on the remaining position. Fun stock to trade as it is volatile, but the long term story is very much intact.

Verizon opening their network has nothing to do with RIM's consumer push. This "open" platform paradigm just doesn't matter to RIM. Ask the average Joe on the street and they want something that simply works, not an open platform that they can tweak. Only the tech geeks want to tweak and that's a small percentage of the potential user base.

I find it interesting you have lowered your price on RIM from $60 to $50 since last week even though they will sell into both Russia and China next year. Even without these two countries, RIM's business is an inch deep and and a mile wide. What I mean is that they are on 325 networks in 110 countries - talk about a global growth story - and wait until they get 2 inches deep. It's an aspirational product to many folks because of the strong word of mouth and high user satisfaction.

In a backdrop of 30% unit growth each year for the next few years, the 120 million annual smartphones sold today will be 400-500 million units in 5 years. That's the kind of industry I want to invest in, especially a leading value add company. RIM adds value to the carrier with the upsell on the required data plan and value to the user with reliable, secure, instant email.

This article is a joke. Todd's articles usually are. This is just regurgitation of rumors flying around the internet.

[Hayweed]

John:

Should I be happy now as it down big the last few days and now below the 50 day moving average.

On your comment that 500 million phones will be smart phones you may be right but in a few years every phone will be a smart phone as nobody will want a regular phone. But Rimm has their own operating system just like Apple did with the Mac. The mac was big for a while then every computer had a graphic interface and Apple about went away. Now they are coming back. Rimm may easily suffer the same fate as Google makes an open system and Microsoft promotes their system. Rimm will be a niche player to business not the consumer. How about Nokia offer free music today. That is an ouch to Rimm not Apple.

PS: I do agree with you that Todd's articles are a joke.

[John Lazerow]

For this comment to be valid, you are saying that other companies will replicate what RIM has in their service offering and that every phone will have secure, instant push email and data services. That's their huge competitive advantage, it has nothing to do with an open or closed OS. RIM controls the device presence on the network for data, i.e. when your BB's pin number shows up on any BB enabled cellular network in the world, RIM recognizes this and starts delivering data and knows what has and hasn't been delivered.

Under any other scenario whether it be Android, Windows Mobile, or any other configuration, you simply have the device and the server somewhere on the internet and NO middleman to guarantee delivery. This will be RIM's enduring value proposition whether they stick with selling their own devices or shift to a service oriented company getting BB clients on all devices.

In re the stock's decline, it has been a good trade for you, congrats. I have been looking to buy more, but feel $100-110 is the right value for the company today, certainly not $50 or $60. And we'll get more data points in a few weeks when they report.