BlackBerry-maker, Research In Motion, Ltd., (RIMM) is set to launch its much-hyped Wi-Fi-based PlayBook tablet on April 19, 2011 at more than 20,000 retail outlets across the US and Canada. PlayBookwill run on Research In Motion’s own operating system called QNX and Google’s (GOOG) most popular Android operating system. Moreover, it will also support Java-based programming.
The PlayBook tablet supports more than 2,00,000 applications and also provide its buyers the option of accessing any application by just downloading the Java and Android application from Research In Motion’s BlackBerry Application World online store. Additionally, the company is in talks with Ideaworks Labs and Unity Technologies in order to provide video game features to its PlayBook.
The growing popularity of Google’s Android has allowed most of the mobile manufacturers to install the system in their mobile phones in order to provide the user-friendly experience to their customers. According to a recent survey, Android is close on the heels of Nokia’s (NOK) market-leading Symbian operating system. It is believed that in the coming years it will overtake Symbian.
Research In Motion’s BlackBerry sets are mainly targeted toward corporate clients, but the advent of smartphones, which supports all official tasks, poses a real threat to the Blackberry market. So in order to expand as well as retain its market share, the company is continuously upgrading itself.
Booming foreign markets and strong fundamentals, coupled with Research In Motion’s new PlayBook and new smartphone line ups will act as positive catalysts for growth. However, weaker outlook and stiff competition from Motorola Mobility Holdings, Inc.’s (MMI) XOOM tablet series and Apple Inc.’s (AAPL) iPhone and iPad series will result in loss of market shares. Moreover, the launch of Blackberry look-alike handsets and smartphones at cheaper rates will also pose serious threats to the company’s market share.
We, thus, maintain our long-term Neutral recommendation for Research In Motion Ltd. Currently, Research In Motion Ltd has a Zacks #3 Rank, implying a short-term Hold rating on the stock.
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