RIM promises 'quantum leap' with BlackBerry OS 6.0

Research In Motion (NASDAQ:RIMM) co-CEO Jim Balsillie said Thursday the device maker's forthcoming BlackBerry OS 6.0 update heralds a "quantum leap" for the smartphone market. Speaking on RIM's fiscal Q1 earnings call, Balsillie said the firm will introduce two new products either late in the current quarter or early in Q3, stating the new devices will drive growth and boost BlackBerry's competitive standing in the North American marketplace. "I just wish I could wind the clock forward a few weeks," Balsillie said. "I couldn't feel better."

Specifics on BlackBerry OS 6.0 remain scarce, but at the manufacturer's Wireless Enterprise Symposium this spring, RIM co-CEO Mike Lazaridis trumpeted enhancements including an improved WebKit-based browser, a customizable homescreen, a revamped media player and a more intuitive user experience. "We're trying to update the UI and fix the stuff that people wanted us to fix," Lazaridis said, adding that BlackBerry OS 6.0 will extend to both trackpad and touchscreen devices. During Thursday's call, Balsillie declined to comment on speculation RIM plans to issue a new BlackBerry 6.0-based hybrid smartphone boasting both a slide-out keyboard and touchscreen experience evoking Apple's iPhone, enabling consumers to swipe through screens and expand images with their fingers--earlier this month, The Wall Street Journal reported RIM is also at work on a tablet device to rival Apple's iPad.

Research In Motion shipped 11.2 million devices in Q1, including its 100 millionth BlackBerry smartphone. Revenues came in around $4.2 billion, up from $3.4 billion a year ago and topping the previous quarter's total of $4.1 billion. Balsillie said international sales now account for 40 percent of RIM's overall subscriber base, adding that the BlackBerry App World virtual storefront now generates 1 million downloads per day. Last week, RIM announced a host of App World upgrades including carrier billing and credit card options, expanding purchase alternatives beyond PayPal.

Balsillie also speculated that operators' introduction of tiered, usage-based data pricing will boost RIM's growth, echoing a recent analyst note published by Susquehanna Financial's Jeff Fidacaro. According to Fidacaro, the introduction of reduced entry-level data pricing will encourage a significant number of subscribers to swap their feature phones for smartphones, with BlackBerry devices ideally positioned to capture this new business thanks to their affordable prices and emphasis on low-bandwidth applications like email and instant messaging. Conversely, Fidacaro contends that data caps could limit future adoption of Apple iPhone, a device synonymous with high-bandwidth apps like streaming video.

For more on RIM's future outlook:
- read this Dow Jones article

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