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With its U.S. smartphone share having fallen to miniscule levels, RIM (RIMM -1.1%) is counting...
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Friday, January 25, 5:43 PM ETWith its U.S. smartphone share having fallen to miniscule levels, RIM (RIMM -1.1%) is counting on a Super Bowl ad to create some buzz in the country ahead of its first BB10 hardware launches (likely the Z10 and X10). In a PR discussing the ad, RIM suggests new BB10 tablets will eventually arrive to go with smartphones. The average price for a 30-second Super Bowl ad this year is reportedly $3.8M.
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Revenue = $12 billion
Do I need to say more?
Some people are probably annoyed by the high cost of owning a smartphone. $40 a month for me, but that is because I share plans with my family. But is the price for other smartphones any better?
The iPhone costs $499-$899 depending on the amount of memory you want and the data plan. Yes, Galaxy is cheaper, but it is all preference. I don't like how the Galaxy looks. And it is too thin for me. Plus, I don't want a bigger phone. Isn't the purpose of a phone to call from one place to another, not to watch movies or play games?
US customers with subsidized phones make for a hard target market for RIM, considering how effectively its competitors are timing their product entries. I don't expect a big splash or "long lines" as it were but it's high time RIM came out with market competitive software. The BB7 devices upgraded the hardware to be closer to its competition and BB10 brings software that meets the competition.
Considering its security and backend advantage, it may do all right in its primary market segments of corporate/government, and considering its timing it may do ok with consumers as well.
I'm a long term fan although I sold my stock long ago and do not currently hold a position. Moderately bullish.
Blackberry was slow to migrate up hardware specs in deference to battery longevity. Most of the competition took a while to implement the battery sizes needed to meet BB longevity.