ORLANDO, Florida (Reuters) - Research In Motion Ltd gave developers a
glimpse at its next-generation BlackBerry 10 smartphone on Tuesday and a
set of software tools to create flashy apps to run on its new operating
system, but investors were unimpressed and RIM's shares tumbled.
At
RIM's annual BlackBerry World conference in Orlando, new CEO Thorsten
Heins took center stage to unveil a prototype of the devices RIM expects
to launch later this year. The BlackBerry 10 devices will navigate with
fewer keystrokes than the legacy smartphones, relying on swipe gestures
and word suggestions.
"We wanted a user paradigm that is easy and
fast," Heins said, demonstrating how information from documents,
emails, calendars, and address books could slide in and out from the
screen's edges. "It's all about making things flow."
Colin Gillis,
an analyst at BGC Partners, said Heins' presentation only served as a
reminder of the tough road the company has ahead as it prepares for the
make-or-break BlackBerry 10 launch.
RIM knows consumers won't buy
its new phones or tablets unless developers get excited about the
platform and create a wealth of apps to operate on it. A dearth of apps
for the legacy BlackBerry is one of the big reasons RIM has suffered
huge market-share losses to Apple Inc and Google Inc's Android in recent years.
As
a consequence, shares of the BlackBerry maker have dropped about 70
percent over the past 12 months. On Tuesday, RIM closed down 5.8 percent
at C$13.31 in trading on the Toronto Stock Exchange.
"The bulls
have disappeared from the scene as far as RIM is concerned," said David
Cockfield, managing director and portfolio manager at Northland Wealth
Management. "There is no investor confidence in RIM at all. It will have
to do something fairly spectacular to turn things around."
STARTING FROM SCRATCH
To
regain its stride, RIM is essentially starting from scratch. Few of the
apps available for its existing smartphones will work on the new
platform, and the legacy BlackBerry won't be able to run apps created
for the new platform.
Based on an operating system called QNX
that's compatible with numerous open-source coding languages, BlackBerry
10 is a major break with RIM's legacy operating software, a proprietary
system that turned off developers.
The prototype device that RIM
handed out to developers has no physical keyboard, unlike most
BlackBerry models. Known as Alpha Dev, it looks like a smaller version
of RIM's PlayBook tablet, complete with a touch-sensitive frame that a
user can swipe to call up a menu.
While RIM says the hardware it
eventually launches will bear little resemblance to the prototype, apps
built for the Alpha Dev's 4.2 inch screen will allow for a "very
seamless transition" to BlackBerry 10 devices, said Christopher Smith,
vice-president for application platform and tools.
As for the software toolkits, they are designed to simplify the task for app developers and independent content producers.
One
of them is Cascades - a toolkit from The Astonishing Tribe, a Swedish
user interface company RIM bought in 2010. It helps create apps that are
rich in graphics. Developers can simply select an effect with a touch
and have it written directly into their program.
QUICKER DEVELOPMENT PROCESS
RIM said it was already working with some partners to ensure content and apps are available when the devices are launched.
Among
them are Endomondo, which specializes in apps to promote physical
fitness; PixelMags, an mobile magazine newsstand; Poynt , a local search
engine; and Wikitude, whose apps superimpose information over camera
images.
Gameloft is working to bring 11 games to the new platform,
including a puzzle game called "Shark Dash" and a more complex game
called "N.O.V.A 3: Near Orbit Vanguard Alliance."
"RIM has got it
right with the BlackBerry 10 platform," said Adam Linford from Truphone,
which offers local calling and data rates while its customers are
roaming. "The platform's support for open-source components flattens the
learning curve, enabling us to build a new application quickly and cost
effectively."
YAWNING APP GAP
Impressing developers is
crucial for RIM, which has expanded beyond its traditional strength in
providing mobile email to office workers, only to struggle against the
more consumer-friendly iPhone from Apple and the slew of devices that
make use of the Android platform.
Waterloo, Ontario-based RIM has
around 15,000 apps for its PlayBook tablet and 70,000 apps for its
smartphones or the tablet, compared with 200,000 iPad apps, and half a
million for the iPhone.
A recent survey from Appcelerator and IDC
showed less than 16 percent of developers were "very interested" in
creating programs for RIM, compared with 90 percent for Apple and 80
percent for Android.
Earlier on Tuesday, research firm IDC said
that RIM's share of the global smartphone market had slipped to 6.7
percent in the first quarter, from 13.6 percent a year earlier.
(Reporting by Alastair Sharp; Editing by Frank McGurty)
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