This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

RIM Chokes on Its iPad Killer

Stocks in this article: RIMM AAPL GOOG MSFT HPQ

NEW YORK ( TheStreet) -- Add Research In Motion (RIMM) to the list of tech shops rethinking its tablet strategy.

The BlackBerry maker had hoped to offer a Google (GOOG) Android-powered tablet later this year, but has now backed off the plan, says Rodman Renshaw analyst Ashok Kumar, who has been monitoring the supplier and manufacturing partners.

The so-called BlackPad RIM tablet -- first reported by BlackBerry Leaks -- is being pushed out to early next year, says Kumar.

The move marks the third time in two weeks that a would-be tablet maker has shelved product preparations aimed at challenging the Apple (AAPL) iPad. Last week, Hewlett-Packard (HPQ) pulled the plug on its Slate tablet and Microsoft (MSFT) reportedly withdrew plans for the Courier device. Both tablets had been due to arrive this year, dealing Microsoft a major setback in its flailing mobile effort.

"Everyone is taking a second look at that product roadmap," says Kumar, referring to tablets. "It has to compare favorably to the iPad."

RIM is expected to be designing its tablet for the consumer market -- not specifically to its core business users. As it stands now, says Kumar, RIM has enlisted Quanta, Taiwan's huge contract manufacturer, to build the device. And instead of using Google's Android software, RIM has decided to go with its own BlackBerry operating system, presumably the one featured at the company's developers' conference last week.

The "BlackPad" is also slated to use Marvell's (MRVL) Armada processor, a significant supplier choice that once again has Intel (INTC) sitting outside the tablet market.

The Apple iPad has struck a chord with gadget fans who have now scooped up more than one million iPads in the first month of sales. The initial enthusiasm for the device challenges assumptions about whether people would buy an in-between mobile device.

The iPad sets an emerging industry standard of sorts in areas like long battery life, a range of prices from $500 to $830 and a diminutive operating system geared toward media consumption and not computing.

Would-be rivals need to stack up favorably with those features or find an edge that would help set the device apart from the iPad. RIM's decision to go with its own operating system suggests that it will tap some of its email-specialist strength in the upcoming tablet wars.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs