Is RIM's Bold Too Late to iPhone Party?

After months of delays, Research In Motion on Wednesday finally announced a November 4 launch date in the United States for the BlackBerry Bold smartphone.

Nearly four months behind schedule, the Canadian smartphone maker might have lost momentum. The result is that many customers tired of waiting may have instead opted for the  popular iPhone.

“Hopes for Bold are fading given time-to-market,” wrote Cowen & Co. analyst Matthew Hoffmann in a note to clients.

RIM had first announced the launch of the 3G phone with built-in GPS, its answer to Apple's iPhone, in July. That came  around the time Apple was releasing the iPhone 3G. But the launch was postponed until August because of battery life issues and overheating problems, and then it was postponed again.

RIM tries to justify the delay with mentions of the detailed attention given to the product.

“The development of the BlackBerry Bold smartphone was an ambitious undertaking, and we focused intensely on the things that are most important to mobile customers,” said Mike Lazaridis, RIM’s president and co-CEO, in a statement.

Wall Street took notice of the delay, and its concerns have reflected on the company’s shares, which have plunged in recent months--the stock lost nearly half its value in October.

Investors appeared displeased Wednesday by the news. In midday trading,  shares plunged $3.49, or 6.9 percent, at $47.04.

While the Waterloo, Ontario-based company was intensely focusing on things "important" to mobile customers, Apple hurried and stole the show.

Apple sold 6.9 million units of its 3G touch-screen phone compared with 1.1 million in the year-ago quarter, the company said on Tuesday, when it announced its fourth-quarter financial results.

RIM sold 6.1 million BlackBerry devices during the same period.

“We sold more phones than RIM,” Steve Jobs, rubbing salt in the wound, said on the conference call.

Apple’s financial report also confirmed analyst predictions that the Bold would struggle against the iPhone.

“Apple’s report looks like a body blow to RIMM,” wrote Mr. Hoffmann. “Apple’s dominance of high-end 3G in North America comes as Bold struggles to find traction in markets where it has launched.”

Some of the markets where the Blackberry Bold was released but failed to impress include Canada, Australia, Indonesia, and Malaysia.

Source: redherring.com