BlackBerry Falls Behind In Workplace

More workers use iPhone and Android smartphones combined than BlackBerry devices, according to a survey of 1,681 U.S.-based workers released today by Forrester Research.

That finding highlights what many have known for a while about the entrenched workplace smartphone veteran: the BlackBerry faces trouble from its competitors.

The BlackBerry, made by Research in Motion, still leads among U.S. workers, with 42%, the survey said, with Apple’s iPhone accounting for 22% and Android devices, 26%.

The survey also found that nearly half, or 48% of the group, said that they chose the primary smartphone used for their work without considering what their company supports. Only 29% said they chose the smartphone from a list of phones the company supports, while 23% said they had no choice in the matter.

Often, corporate IT shops will choose BlackBerry smartphones when requiring a worker to use a specific smartphone, partly because of the perceived security benefits, many analysts, including at Forrester, have found. The growth in Android phones and the iPhone — many of them brought to workplaces by workers independently — are forcing IT shops to rethink that decision, however.

Ted Schadler, a Forrester analyst, said the survey points to two major trends. The first is that more workers than ever are bringing consumer-focused devices, such as Android and iPhone smartphones, to use for work, and more companies are supporting those devices.

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RIM’s Woes Continue

PlayBook shipments dropped in half for Research In Motion during its second quarter, which also saw revenue continue its steep decline.

RIM shipped just 200,000 PlayBooks in the second quarter, down from 500,000 last quarter, when it started offering the tablet device.

Revenue was US$4.2 billion, hitting the low end of the company’s expectation and down 10 percent from the same quarter last year. Analysts polled by Thomson Financial expected $4.47 billion.

RIM’s net income was $329 million, or $0.63 per share. Adjusted net income was $419 million, or $0.80 per share. Analysts were expecting better: Those polled by Thomson predicted $0.87 per share.

RIM shipped 10.6 million smartphones during the second quarter. In June, RIM warned that the second quarter might be weak because of delays in shipping new phones. The delays meant RIM would miss the back-to-school sales period, negatively impacting sales, it said at the time.

Executives who spoke during a conference call to discuss the results put a positive spin on phone sales, however. The company only began launching phones running the new BlackBerry 7 software within the past few weeks, and so far it’s the “largest and most successful launch in our history,” Mike Lazaridis, co-CEO of RIM, said during the call.

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HTC Is On A Buying Spree

Taiwanese handset maker HTC has been on a shopping spree to reshape its business, though it remains to be seen if the strategy will help it gain ground on rivals such as Apple, Samsung and Research In Motion.

HTC has bought or invested in at least six companies this year, many of which provide technologies to improve how users consume and share content on its devices. It’s a big change for the Taiwanese manufacturer, which focused for much of its existence on hardware, leaving software and content to its partners.

Times have changed, however, with rivals like Apple and Nokia building whole ecosystems around their products, including app stores and content delivery systems. HTC has shifted its focus before, moving from contract manufacturer for Microsoft’s smartphones to selling its own HTC-branded devices. It must now evolve once more.

“It is no longer enough to focus only on hardware innovations,” said Ryan Lee, an analyst with Taipei-based Topology Research Institute. HTC’s acquisitions, which include both technology and patents, “pave the way for HTC’s greater competitiveness,” he said.

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Shareholder Group Demands RIM Shake-up

An activist shareholder in Research In Motion said on Tuesday it wants the struggling BlackBerry maker to seriously ponder selling itself or spinning off its patent portfolio, sending RIM’s share price higher.

Jaguar Financial Corp said it wants the Canadian company’s board to take control from co-Chief Executives Mike Lazaridis and Jim Balsillie and for up to five of RIM’s independent board members to explore options to maximize shareholder value.

RIM shares were up 1.3 percent at midday Tuesday at $30.52 on the Nasdaq and gained 2.3 percent to C$30.26 on the Toronto Stock Exchange. Both markets were down sharply
overall. RIM shares have lost almost half their value since the start of the year.

“Our call is for (RIM’s board) to take action; no more study, take action. Take action now, before it’s too late,” Jaguar Chief Executive Vic Alboini said in an interview.

Alboini said Jaguar has talked to a select group of shareholders and received broadly positive feedback for its plan.

“We haven’t found one who wasn’t supportive,” he said. “We haven’t found any opposition.”

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RIM Heads To The Cloud

Canada’s Research In Motion (RIM) will take the wraps off of a new cloud-based social music sharing service called BBM Music, as companies begin to bet on entertainment delivered over the Internet that incorporates social networking features.

Research in Motion, the maker of BlackBerry phones, said select music from Universal Music Group, Sony Music Entertainment, Warner Music and EMI would be available for the users.

A closed beta trial of the BBM Music service is starting on today in Canada, the United States and the UK, the company stated.

The music service is expected to be commercially available to customers later this year for a monthly subscription of $4.99 in a number of countries, it said.

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RIM To Launch Music Service

BlackBerry maker Research In Motion is making plans to roll out its own music streaming service that will work across its mobile devices, according to people familiar with the plans.

The new service is likely part of an attempt by RIM to improve its BlackBerry Messenger service as it competes with the mobile media platform strengths of rival Apple Inc and Google Inc’s Android.

RIM is in late-stage negotiations with major labels, including Vivendi SA’s Universal Music Group, Sony Corp’s Sony Music, Warner Music Group and EMI Group. The new service is expected to be announced by Labor Day in the United States, September 5.

RIM has been enhancing its BlackBerry Messenger offering, popularly known as BBM, since announcing its “social platform” at last September’s DevCon event where it unveiled the PlayBook tablet computer.

A RIM spokeswoman declined comment on the report but said BBM is one of the largest mobile social networks in the world.

RIM’s BlackBerry smartphones have been hit by a sharply declining market share in the United States, even as the company has expanded sales in other parts of the world, partly because of BBM’s popularity.

Analyst Matthew Thornton at Avian Securities said he doubted the music service would attract new users but might help the company keep its existing BlackBerry customers interested.

“I just don’t think trying to replicate Apple is really going to change their situation near term,” he said.

“For RIM it’s going to be the new OS 7 product first and foremost … and then it’s about QNX and making that transition.”

RIM has just launched an updated operating system on three new touchscreen devices intended to catch up with the technical specifications of Android and other rivals. The company plans to launch the first BlackBerrys using the QNX software, used on its PlayBook tablet, early next year.

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Best Buy Stuck With TouchPads

Best Buy is sitting on a boatload of 200,000 HP Touchpads and wants to send them back to HP.

According to Allthingsd, Best Buy stocked its warehouses with around 270,000 HP Touchpad tablets. However, the retailer has been unable to sell the tablets and has only sold at most 25,000, even with a $100 discount, so Best Buy is requesting that HP take back all of the unsold devices.

Furthermore, it is being said that things are so bad that HP EVP Todd Bradley might have to go to Best Buy’s headquarters and plead with executives to exercise patience. It appears that the Touchpad is suffering from poor sales in many stores across the country, with Wal-Mart also said to be an unhappy camper.

Update…HP will stop making the HP Touchpads…….

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VoIP Ideal Platform For Controlling Botnets

Botnets and their masters can communicate with one other by calling into the same VoIP conference call and exchanging data using touch tones, researchers demonstrated at Defcon.

This gives the botmasters — whose top goals include remaining anonymous — the ability to issue orders from random payphones and disposable cellular phones, say researchers Itzik Kotler and Iftach Ian Amit of security and risk-assessment firm Security Art.

Using phones and the public phone networks eliminates one of the prime tools bot fighters have: taking down the domains of botnets’ command and control servers, the researchers say. If the botmaster isn’t using a command and control server, it can’t be taken down.

In fact, the botmaster can communicate with the zombie machines that make up the botnet without using the Internet at all if the zombies are within a corporate network. So even if a victim company’s VoIP network is segregated from the data network, there is still a connection to the outside world.

In addition to its stealth, the VoIP tactic employs technology that readily pierces corporate firewalls and uses only traffic that is difficult for data loss prevention software to peer into. The traffic is streamed audio, so data loss prevention scanners can’t recognize patterns of data they are supposed to filter, the researchers say.

The downsides of VoIP as a command channel are that it severely limits the number of zombie machines that can be contacted at once, and the rate at which stolen data can be sent out of a corporate network is limited by the phone system. But Kotler and Amit say the connections are plenty big to send commands in.

During their demo at the conference, the pair had an Asterisk open source IP PBX stand in as the corporate PBX. A virtual machine representing a zombie computer on a corporate network called via TCP/IP through the PBX and into a corporate conference call. A BlackBerry, representing the botmaster dialed in over the public phone network to the same conference call.

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iPad Rivals Have Better Chance In Europe

Would-be rivals to Apple’s iPad have a better chance in Europe than they do in the United States, but they need to drop prices fast to grasp the opportunity, IT research firm Forrester said on Tuesday.

Apple’s relatively small retail presence in Europe — with 52 stores compared with 238 in the United States — offers a chance to the likes of Samsung, Acer and Research in Motion, Forrester said.

But their prices cannot yet compete with Apple, which has far larger scale in the tablet market and an efficient supply chain. Forrester said emerging challengers from China and Taiwan would likely step in soon with cheaper offerings.

“There is this opportunity for iPad challengers, but the competition is very fragmented. Competing with Apple will require a different approach from what we’ve seen so far,” said analyst Sarah Rotman Epps, the author of the Forrester report.

Apple still has the tablet-computer market almost to itself after launching the iPad a year and a half ago. It has sold close to 30 million iPads, whose prices start at about $500.

Forrester expects Apple to sell 80 percent of all consumer tablets in the United States and 70 percent in Europe this year.

It expects 2011 worldwide tablet sales to reach 48 million units, with half of those sold in the United States, 30 percent in Europe, 15 percent in Asia and 5 percent in Latin America.

Forrester surveyed almost 14,000 online adult consumers in France, Germany, Italy, the Netherlands, Spain, Sweden and Britain, and also interviewed product strategists from manufacturers, telecommunications operators and retailers.

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RIM Unveils New BlackBerry Torch Phones

Research In Motion on Wednesday unveiled two more powerful versions of its touchscreen BlackBerry Torch, hoping to buy time until it can introduce a radically new software package in its smartphones.

The new smartphones, along with a Bold upgrade unveiled earlier, are part of what the Canadian company called its biggest global launch ever as it seeks to claw back North American market share losses from Apple’s iconic iPhone and a slew of devices running on Google’s Android software.

The three touchscreen phones, running on the new BlackBerry OS 7, each boast an improved screen display and pack a 1.2 GHz processor from Qualcomm, the most powerful ever for a BlackBerry phone. All three devices will launch with carriers globally by the end of August, RIM said.

The browser for the new phones is 40 percent faster than the original Torch, RIM’s last major phone launch which hit shelves almost a year ago.

But since co-chief executive Mike Lazaridis has already promised “superphones” next year using the QNX-based operating system running RIM’s PlayBook tablet
computer, analysts are looking beyond the launch.

“This is a necessary product refresh in advance of the big bang that we hope and expect will happen with QNX-based phones,” said CCS Insight vice-president of research John Jackson.

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