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Showing posts with label company. Show all posts
Showing posts with label company. Show all posts

BlackBerry 10 faces uphill struggle

In the end, Carole Blake simply took a hammer to her BlackBerry smartphone, and smashed it into pieces. The London-based literary agent had had enough of what she saw as increasingly unreliable service.

In October 2011, BlackBerry servers were down for days including her time at the Frankfurt book fair. But that was just the beginning of her BlackBerry problems, as her handsets also started malfunctioning. "Four in a year left me frothing," she explained.

She switched to an iPhone 5. "It took five minutes to adjust, helped by having used an iPad. My unreliable BlackBerry was hurting business," she said.

For Research In Motion (RIM), the Canadian company that invented the BlackBerry, Blake's story illustrates some of the many blows to the company over the past two years.

Millions of users, and hundreds of businesses, have deserted BlackBerry for Apple, or Android phones such as Samsung's Galaxy S III, or Nokia. RIM suffered huge global operating losses last year including $643m in a single quarter and the board ejected its two co-founders, Mike Lazaridis and Jim Balsillie, replacing them with operations chief Thorsten Heins.

So Wednesday is a very big day for BlackBerry, when Heins will unveil the company's latest offerings to try to reverse the tide and tempt back Blake and millions like her in what some analysts see as a last chance to survive.

Two new mobiles – one with a keyboard, and one with only a touchscreen – will showcase its new BB10 software, which brings a completely new interface to the phone once known as the "CrackBerry" because of its ability to serve round-the-clock email to workaholics.

Heins realises that he has a huge challenge but he recently told Die Welt that he believed RIM's role in the future will be substantial and that the new software is aimed not only at phones but also for cars. "We have taken the time to build a platform that is future-proof for the next 10 years," he said.

Benedict Evans, of Enders Analysis, sees BB10 as a last roll of the dice: "The question is, how long can they keep rolling it? How long can they wait for the right numbers? The high-end corporate users are abandoning it." Evans added that from talking to people in phone shops, it seemed teenagers were keen on rivals with more games apps.

Carolina Milanesi, smartphones analyst at research group Gartner, said the company cannot carry on as before. "This is certainly key to RIM's survival and indeed BBM is just not enough anymore," she said."Even consumers that are price sensitive and who value messaging are looking for more than BlackBerry Messenger." BBM – the free messaging service that was blamed for helping rioters organise during the UK riots in summer 2011 – no longer ties people to the brand either. The rise of rival services such as WhatsApp, which has an estimated 100m users worldwide – compared to BBM's 79m. WhatsApp also lets users send text-style messages for free but works on any smartphone.

All of that means Heins and RIM have a mountain to climb. They have to tempt back people such as Mamun Ahmed, who switched from a BlackBerry to a phone using Google's Android software: "Being a BlackBerry user I started realising that, I couldn't keep up with the 'tried the cool app' trend, as very few app makers were making apps for BlackBerry," he said.

His bank only offered apps for the iPhone and for Android phones. He said: "All of the websites I was using on a day-to-day basis seemed only interested to make apps for the iPhone and Android and totally ignored others."

That has meant a flight of users – so pronounced in the US that in October the New York Times ran a story about people being embarrassed to show their BlackBerry in public. Heins wrote to the paper saying the article "lacks the balance" expected, saying "there are millions of BlackBerry fans out there who not only find value in their device, but also pride in being a BlackBerry owner."

Some remain loyal. Abigail Rudd, a student at Exeter University, stuck with her BlackBerry rather than buying an iPhone when she renewed her contract last April because it is more robust than other models. "In addition, the keyboard is great," she said.

Yet the outflow continues. ComScore, which calculates US smartphone ownership, reckons that there are now just 9 million BlackBerry users in the US, down from a peak of nearly 22 million in September 2010, while US smartphone ownership has doubled to 123 million.

Embarrassment can be a factor. Jamie Fox, in charge of communications for the TeamGB Ski and Snowboard teams, finally switched after 10 years with BlackBerry to an iPhone 5 this month. "I was just on a ski trip with [2012 long jump Olympic gold medallist] Greg Rutherford and [Olympic runner] Andrew Strong and was relentlessly ribbed about still having a BlackBerry. Whenever it was taken out in the bar, loud cheers would go up and the mocking would begin," he said.

But he had also become dissatisfied with the battery life, app choice and camera quality of the BlackBerry.





RIM has also lost its favoured position as the handset of choice with business people. It has lost corporate and government contracts, some in the wake of the service outage. Businesses which used to hand out BlackBerrys are often replacing them with iPhones, where the galaxy of apps (sometimes custom-made) and better web browsing are pushing the BlackBerry aside. The prestigious contracts that RIM has lost in the past two years include the US National Oceanographic and Atmospheric Administration, the US National Transportation and Safety Board and the US Immigration and Customs Enforcement Agency. In November, even the Pentagon sought to let in Apple and Android phones, even while stressing that it would still hold on to some BlackBerry phones.


The key to a BlackBerry revival, suggests Francisco Jeronimo, smartphone analyst at IDC, will be whether it can persuade those corporate customers – the segment where it first grew to fame as Wall Street financiers discovered they could get secure email while out of the office – to stay with it. "They could survive. You won't compare them to Apple and Samsung but they could be in the top five handset makers. If they can manage to regain trust from the companies who have been clients, they can survive, profitably, just by staying small and focused," he said.

And if they don't persuade those companies? "If they can't, it will be very hard," he said. At worst, RIM might be broken up for the value of its patents which are considerable.

Fox, for one, found his BlackBerry a source of irritation. "The big annoyance was the random red light flashing [on the top of the phone]. It wouldn't be for an email, but for some random BlackBerry update. And I could never get it to stop. So distracting. On the whole, it's just outdated," he said.

Persuading people that it is not is the task that lies ahead of Heins. Most of all, he wants to stop that red light going out.

Canadian companies feel the world's pain



TORONTO -- Financial results from Canada's biggest companies are likely to disappoint investors in the coming weeks with weak global growth and mixed commodity prices expected to have pummeled the quarterly earnings of oil companies and miners.

Energy and materials shares make up about half of the value of the Toronto Stock Exchange's benchmark S&P/TSX composite index and include such blue chips as Suncor Energy Inc, Teck Resources Ltd and Goldcorp Inc.
All three companies are expected to post year-on-year drops in fourth-quarter earnings per share when they report in February.
Overall, companies in the TSX are expected to report quarterly earnings growth of only 0.3 percent from a year earlier, according to Thomson Reuters StarMine SmartEstimates. Analysts see full-year 2012 earnings dropping 1.4 percent, but they expect profits to climb around 9 percent next year.
"This earnings season might be a mild disappointment in some cases, or a mild disappointment overall," said George Vasic, chief economist and strategist at UBS Securities Canada.
 
Vasic noted that TSX valuations are higher than they were last year, increasing the risk that stock prices could fall on negative news. He said investors will be especially sensitive to earnings outlooks, and that capital spending plans will be scrutinized.
In the United States, where the fourth-quarter earnings season is already well underway, shares of such top financials as Bank of America and Citigroup have fallen on disappointing results.
By the time reporting is done, S&P 500 fourth-quarter earnings are expected to have increased just 2.5 percent, according to Thomson Reuters data, but that is still far better than what is expected from TSX companies.
Philip Petursson, a managing director of the portfolio advisory group at Manulife Asset Management, said the market has already priced some negative news into Canadian share prices.
Even so, he said, "you can have a couple of shocks that will take things a little bit lower".


TSX TO LAG S&P 500 ONCE AGAIN?
With the global economy struggling because of political gridlock in Washington, Europe's debt crisis, and a slowdown in Asia toward the end of last year, it's little wonder that growth-sensitive sectors such as energy and materials were the worst performers on the Canadian market in 2012.
Toronto's S&P/TSX composite put in a much weaker performance last year than the more-diversified S&P 500 index. The TSX was up 4 percent in 2012, while the S&P gained 13.4 percent.

Many analysts see the trend extending into 2013. The TSX is expected to rise about 4.5 percent in 2013, while the S&P is seen doubling that at 9 percent, according to Reuters polls.
Global economic weakness has translated into weak commodity prices, particularly for energy. As a result, oil and gas producers are expected to show an earnings decline of 18 percent in the fourth quarter, according to Thomson Reuters data.
But Canadian-specific issues are hitting domestic producers as well. With limited capacity to move Canadian crude oil abroad, crude pumped out of Alberta and other provinces sells at a steep discount to international prices, especially for heavier grades.
"Commodity prices and oil we think are going to be more flat over the next year or so and that's going to be a tremendous headwind for the energy sector," said Shailesh Kshatriya, senior investment analyst at Russell Investments Canada.

MINERS DRAG, FINANCIALS UNDERWHELM
The TSX index's materials sector, home to miners of potash and industrial and precious metals, is expected to have had profit growth of just 1.3 percent in the fourth quarter.
But commodity prices are not entirely to blame for this. The price of spot gold, which traded around $1,686.10 an ounce on Friday, is up from a year earlier. Yet shares of Canadian precious metal miners lost 16 percent last year.

"As these companies find more gold, it's getting more and more costly to pull it out and get it out of the ground," said Allan Small, senior investment adviser at DundeeWealth, noting that a similar problem for oil companies has caused their stocks to lag the commodity prices.
Even shares of Canada's still-healthy banks, which don't start reporting results until late February, could start to lag after performing relatively well since the 2008-09 global recession.

"We're looking for low single-digit kind of gains for the reasons that pretty much everybody knows - the slowdown in the housing market and then the mortgages," said John Kinsey, portfolio manager at Caldwell Securities.
Analysts expect banks' loan losses could increase because Canadian household debt is near record highs.
"The saving grace I guess is the dividends," he added. All of Canada's six biggest banks trade with dividend yields of more than 3 percent, a level that is expected to support their stock prices even if the earnings outlook darkens.

O2 urges rivals to stop providing chargers with new phones


O2 has urged its industry peers to stop giving away chargers with new mobile phones, after a trial found the vast majority of customers were happy to buy handsets without chargers.

The telecom giant yesterday announced the results of a three-month pilot scheme, which saw it sell HTC One X+ handsets without the USB chargers they usually come with, but still with a detachable USB cable.

O2 had expected 70% of customers would be happy to take the greener option as most people already have a compatible charger at home. Anyone wanting an additional charger could buy one at cost price.

In fact, 82% of One X+ customers agreed to buy the handset on its own since the trial started in October, exceeding O2's expectations.

O2 believes there could be 100m unused chargers in people's homes and offices, enough to fill four Olympic-sized swimming pools if thrown away.

The company now estimates there would be 24m fewer charges sold in the UK each year if the results of its pilot were applied to the 30m new phones sold annually.

Ronan Dunne, chief executive of O2, urged other mobile retailers to follow its lead and pledge to phase out the automatic inclusion of chargers at the point of sale.

"The results of the trial demonstrate a clear willingness among consumers to consider and respond to the environmental argument for taking a phone charger-free," he said. "I now hope that as a result of this study the rest of the industry will now consider joining us in our campaign to take chargers out of the box for good."

Last year, O2 pledged to phase out mobile phone chargers for all new phones by 2015, as part of a broad new sustainability programme. At that time, Bill Eyres, O2 head of sustainability, predicted just 60 per cent of people would be prepared to buy a charger-free phone.

However, the results show people are receptive to the idea of reducing electronic waste, if they are given the right information.

"These trial results offer powerful evidence that customers are prepared to amend their purchasing decisions if they have more choice and more information," added Dunne.

"The lesson for the industry from this pilot is that consumers are very receptive to the message that they can benefit the environment by avoiding the needless purchase of chargers. I would now like to see others taking similar steps, working with us as we aim to ensure all our handsets are sold charger-free by 2015."

In 2009, leading mobile phone makers, including Samsung and Apple, signed an EU resolution to create a single universal charger, based on a micro USB connector by January 2012, in an effort to reduce unnecessary waste

However, Apple appears to have backtracked on the pledge, introducing its own new Lightning Charger for the iPhone5 last year.

Ferrari F430 in leather outfit


Ferrari F430
Dartz is a French company engaged in tuning the cars, and they showed Ferrari F430 in the leather outfit. This is a unique car on French roads.

 
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