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RIM’s BlackBerry gets ditched and dissed in one lousy day

2012/02/29 14:50:00
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The BlackBerry stand at the Mobile World Congress in Barcelona got underwhelming reviews by one analyst.

The BlackBerry stand at the Mobile World Congress in Barcelona got underwhelming reviews by one analyst.

JOSEP LAGO/AFP/GETTY IMAGES
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By Josh Rubin Staff Reporter

It hasn’t been a great 24 hours for Research in Motion.

First came news from another U.S. government body that it was ditching RIM’s BlackBerry, reportedly in favour of Apple’s iPhone. Then came a report from a research analyst calling the company’s presence at the influential Mobile World Congress “underwhelming.” That tag came despite a flashy demonstration at MWC showing how the company’s BlackBerry and PlayBook could be integrated with a Porsche 911.

In an interview with U.S. political junkie website Politico, the chief information officer at the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives left no doubt where he stands.

“We’re going to delete the BlackBerry from the mix,” Rick Holgate said, adding the ATF will start replacing its 3,800 BlackBerrys in March. Most of the BlackBerrys, including the ones used by ATF field agents, will be replaced with iPhones, Holgate told Politico. He expects the process to be complete in a year.

RIM spokesperson Rebecca Freiburger defended the BlackBerry, saying there are still plenty of government bodies using it.

“RIM continues to work closely with its more than one million government customers in North America who rely on the unmatched security of the BlackBerry platform,” said Freiburger, who also touted RIM’s reputation for security.

“BlackBerry smartphones running on the powerful new BlackBerry 7 operating systems (OS) have been awarded FIPS 140-2 certification by the National Institute of Standards and Technology (NIST) and the Communications Security Establishment Canada (CSEC). The BlackBerry PlayBook remains the only tablet certified for use by U.S. government agencies,” Freiburger said.

It’s the most recent blow from a government body or big corporation, the kind of customer that has long been RIM’s bread and butter. Earlier this year, the U.S. National Oceanic and Atmospheric Administration also announced it was ditching BlackBerry.

Meanwhile Tuesday, UBS analyst Phillip Huang panned RIM’s presence at the Mobile World Congress, calling it “underwhelming.”

“As we expected, and not a surprise, RIM’s presence at MWC was underwhelming with no new product announcements, no further clarity on the timing of BB10 devices,” Huang wrote in his research report.

“The show reinforced the uphill battle RIM faces in reversing its position in a market that continues to evolve at a torrid pace and with formidable competitors that include Google, Apple and Microsoft,” Huang added. He also pointed to growing momentum from Microsoft in the smartphone market.

“It was interesting to learn from Microsoft that the number of apps now supported in its marketplace has increased to 65k from 10k a year-ago, compared to about 60k apps for RIM (versus about 30k a year-ago),” said Huang.

Huang’s criticism of RIM’s MWC effort came despite a flashy demonstration involving a Porsche 911. On Youtube, RIM executive Derek Kuhn showed off some “seamless integration” which allows BlackBerry and PlayBook owners to use control everything from video, GPS directions and dashboard layout in a Porsche 911. The demonstration took place at MWC.

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