Since their inception, BlackBerrys have been a lot like their users: all business.
Aside from one video game included with the popular, handheld device, the various BlackBerrys from Research in Motion were mobile e-mailing workhorses: no camera, no MP3 player, not much style.
That is until today. Research in Motion is unveiling its first multimedia phone dubbed the BlackBerry Pearl, a sleek device that sports the company's first camera and MP3 player.
The phone, the first BlackBerry to look like the latest offerings from Motorola, Nokia and Samsung, is a huge leap for the company that's made its name on its business reputation. The device goes on sale Tuesday exclusively through T-Mobile and is priced at $199 with a two-year service contract.
Executives believe the Pearl can ignite sales for the Ontario company and expand its customers beyond its current 5.5 million largely corporate users. The release comes at a pivotal time, as RIM continues to lose market share in the smart-phone space to newcomers like Motorola's stylish Q and the increasingly robust Palm Treo.
"There will naturally be some existing users who will upgrade to the Pearl," said Jim Balsillie, RIM's co-chief executive and chairman. "But there will be totally new users who will say, 'This is for me. I wasn't in the market for a BlackBerry, but I am now.' "
A different look
Balsillie said RIM had set out to update its line and add more media capabilities, more function and design to future phones. It turns out they were able to pack it all into one device about the size of a Motorola SLVR.
The look of the phone is decidedly un-BlackBerry. Previous BlackBerry models were bulky and conspicuous. Even the 7100 line of phones, the first to take more of a bar-shape, were still much larger than most phones on the market. The Pearl sports a clean black-and-silver design and, perhaps most shocking for diehard BlackBerry users, no thumb wheel. The wheel has been replaced by a white trackball navigation tool, the inspiration for its name.
But inside, the phone sports a number of firsts for RIM. The Pearl includes a 1.3-megapixel camera with flash and zoom capabilities, an MP3 and video player, a microSD memory slot and voice dialing. They complement the traditional strength of BlackBerrys: e-mailing and text messaging. The phone, like BlackBerry's 7100 line, does not have a full QWERTY keyboard, but instead relies on a system called SureType, which places two letters on each button and uses predictive technology to spell out words. The Pearl syncs easily with Microsoft Outlook without the need of an installed BlackBerry Enterprise Server at the office. It also provides "push" e-mail access to personal accounts such as Yahoo.
Balsillie says the phone can be a boon for phone carriers that are looking to encourage more data use by their customers. He said existing multimedia phones have not done a good enough job providing a dynamic experience, something the Pearl can help overcome.
Balsillie said this is just the start of RIM's move into consumer phones. The company plans to release at least a couple of new consumer-oriented phones by early next year. He declined to say when the Pearl will be available for other carriers.
Analysts are generally impressed with the new phone and expect it to do brisk business for RIM.
"I think this is big news for BlackBerry, it's a big first step," said Ellen Daley, vice president and research director for Forrester Research. "I think this could be people's first BlackBerry."
Expanding its market
Ken Dulaney, vice president of mobile computing at Gartner Research, said the Pearl is a necessary next step for RIM. The company risked being relegated to the sidelines if it failed to expand its portfolio and appeal to the mass market.
"RIM has to win on hardware," Dulaney said. "They have the potential to become another Nokia but that's a long way off. But to do that, they have to come downstream with more-fashionable models. They have to get to the consumer and presumer (those who have not bought similar products) level. That's where the hundreds of millions of customers are."
Dulaney said the market is moving toward mobile e-mail and phones will eventually all be equipped with that capability. He said while there may be only 15 million phones equipped with mobile e-mail, that number should jump to 2 billion in 10 years.
He said the Pearl, while eye-catching and efficient, still faces challenges including identifying and effecting branding strategy and overcoming a narrow release on T-Mobile, the smallest of the big four wireless carriers. And he said the price could be a hindrance as well.
"One-hundred and ninety-nine dollars? That's still a high price when a lot of phones are free," Dulaney said.
Balsillie said he's confident the Pearl will overcome any challenges. He said the company is ready to take its signature mobile e-mail to the masses and he believes the Pearl will help win converts.
"I think that's the part that will pleasantly surprise people about the Pearl," said Balsillie. "They'll say, 'I never thought I'd be e-mailing and browsing and doing all these things on a mobile phone.' "
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