Smartphone maker Research in Motion Ltd. has released five new phones this morning, including one, gasp, that does not have a keyboard. While shares are getting a bounce pre-market, this announcement is still too little, too late.
Any idea that RIM may have of competing with Apple Inc for hardware dominance or with Google Inc for operating system dominance is surely wishful thinking. The coalition between Microsoft Corp and Nokia Corp also stands a chance of putting RIM further on the back burner later this year.
RIM’s hardware aspirations depend on volume, not profit margin. Apple’s iPhones currently produce nearly $300/phone in profit. Blackberries produce about $75/phone, barely ahead of third-place phone maker HTC Corp. In software platform distribution, RIM trails Google’s Android operating system, the rapidly vanishing Symbian OS from Nokia, and Apple’s iOS.
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