RIM Forced To Rename 2012 Operating Platform

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Research In Motion

Research In Motion (NASDAQ:RIMM) can’t name its new mobile operating system “BBX” as it had planned in October and is instead settling for the name “BlackBerry 10.” [1] It’s one more battle RIM has lost recently in the war to keep its 2012 BlackBerry smartphone model competitive with rivals such as Apple’s (NASDAQ:AAPL) iPhone. The name BBX could not be used because it was already a registered trademark by software company Basis International Ltd., a U.S. federal court judge in Albuquerque, New Mexico, ruled recently. See Full Analysis for RIMM Here

Name change may seem trivial, but just another issue for RIM

BlackBerry’s 2012 model has already delayed its release date by several months. Analysts says the name change from BBX to BlackBerry 10 could hamper the success of the 2012 model, which they say is crucial to ensuring RIM remains a competitive player in an increasingly tight smartphone marketplace. [2] They say the loss of its original name makes RIM appear chaotic and haphazard but some think that RIM can capitalize on its previously dominant position if it improves marketing and launch and the competitiveness of the BlackBerry 10. [3]

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BlackBerry phones account for 51.4% of RIM’s stock price, according to Trefis estimates. The recently revised Trefis price estimate of $24 is about 45% ahead of the market price. RIM is also banking on its PlayBook tablet, which so far only accounts for 0.2% of its Trefis price estimate, but it’s been struggling with hackers who have found ways around its most recent security patch. [4]

RIM recently pre-announced that it will miss its revenue guidance for the fiscal third quarter, which it is scheduled to post on Dec. 15. The company’s shares dropped about 10% shortly thereafter. Year-to-date, RIM’s stock has fallen about 70% as the iPhone and Google’s Android have claimed more market share from the BlackBerry.

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Notes:
  1. RIM Backs Away From BBX Brouhaha, Tech News World []
  2. RIM force to change name of software, Newsday []
  3. Next Generation BlackBerry Only Hope For RIM, Execution Risk Looms, Forbes []
  4. RIM hackers claim victory over PlayBook security patch, The Toronto Star []