New BlackBerry, New Fund: Is RIM's Moat Wide Enough?

Business people can be hip too. That appears to be the message from Research in Motion (RIMM) and its motives behind its new BlackBerry Bold smartphone. There’s definitely a hint of some iPhone envy here, but the device isn’t a direct competitor.

From the statement:

Crafted from premium materials, inside and out, that radiate elegance with a dramatic presence, the BlackBerry Bold is designed to give business professionals and power users unprecedented functionality and performance in an intuitive BlackBerry smartphone. It is the first BlackBerry smartphone to support tri-band HSDPA high-speed networks around the world and comes with integrated GPS and Wi-Fi, as well as a rich set of multimedia capabilities. From its lustrous black exterior, satin chrome finished frame and stylish leather-like backplate, to its stunning display, sophisticated user interface and newly designed full-QWERTY keyboard, the BlackBerry Bold smartphone is a symbol of accomplishment and aspiration.

Accomplishment? Aspiration? What happened to that corporate workhorse pitch and all of those security features?

The Bold is clearly targeting the corporate type that wants to look a little trendy. The Bold is “business-grade” but is also targeted at the prosumer. As Jim Balsillie said last week, you can’t move corporate devices without the consumer channel.

Balsillie said:

“Apple is obviously leveraging its B2C play, but we’ve found in wireless that B2B (smartphones) sell through B2C channels. You need B2C to sell B2B. And you have to have both. We view it as a channel play through carriers. Ninety percent of the work you do in B2B works for B2C.”

RIM clearly tips its hat to the iPhone with the Bold. It notes that it has a stunning display, desktop-style Web pages (quickly becoming prerequisite these days), multimedia features and hooks into WiFi and GPS. Details were scant about pricing other than the Bold will be available this summer.

Another key front for RIM is applications. RIM doesn’t do its own apps. While that fact theoretically can make RIM a good partner for software companies like SAP it also leaves the company at the mercy of developers. If they don’t show, RIM can fall behind. To that end, RIM is launching a $150 million venture capital fund with Thomson Reuters and RBC. The BlackBerry Partners Fund is “agnostic to both stage and balance sheet” and “will not restrict the development of mobile applications and services to any single mobile platform or any specific industry segment.”

Comments

[stephenrosenman]

copy cat to iPhone: app funds, sophisticated and sleek, style conscious. RIMM feels AAPL breathing down its neck and is answering.

[ArnoldReinhold]

The real question is what phones will primarily be used for in the future:generating text or viewing information. The RIM, with its mechanical keyboard is better for the former, the iPhone with its large screen and touch interface is better for the latter, whether it entertainment or business data. Third parties will provide miniature Bluetooth keyboards for iPhone users who must have one. And when Apple is ready to administer the coup de grâce, it can simply introduce a model with a fold out/slide out keyboard.

[Tom B]

The Pacific Ocean isn't a big enough "moat" for Blackberry. They are "toast".

[blah-blah]

More comments of the usual AAPL fanatic nonsense to follow later I'm sure. It makes this site such a treat to read.

No technology company has anything Buffett would call a moat and that includes the fantatics favorite as well. 10 years from now new leaders will emerge in the innovation game to replace the current ones. Tech is probably the worst place a buy/hold investor can be in(health care coming close).

[kidrazor]

Ha, by "tech is the worst" you must mean picking at random, buying and holding my AAPL and RIMM shares are both up over 600 percent. Own both peeps, they're both gonna climb for at least another year. Who will stall first???? My stops are on RIM

[THofler]

As we rush towards ubiquitous full featured smart hand-held devices, one contender has a rapid and efficient keyboard & the other doesn't. One wins the best entertainment toy contest, & the other wins the really big contest which is productivity.

[bobthenoob]

toy contest? do you think BB will win against iPhone's OSX? which one is the toy?

we'll see how much your RIM will be worth by the end of the year.

[Jon T]

Looks to me like RIM is skating to where the puck was 18 months ago...

Completely clueless about where it is going to be...

[Brewer]

RIM is eclipsed by just one Apple product. The RIM people are as scared as the Microsoft fanbois about now. Both are sitting ducks for Apple, just watch as this unfolds.

[Brewer]

@blah blah: I'm quite happy having held Apple for a few years now!

@THofler: Mac has been repeatedly called a 'Toy' back when PC users had DOS. After they copied 60% of it keystroke for keystroke, icon for icon, then that stopped. If the iPhone is a 'toy' as you say, why is RIM being such a copy cat? Seriously, they added the ability to play some iPod formats, and could not have legally made it look more like an iPhone (with an ugly keyboard and a tiny screen).

[Brewer]

Isn't the 'toy' usually a fake of the real deal? Funny, Apple isn't copying anyone. RIM is, and Microsoft has done nothing but.