RIM Drums Up Support for New BlackBerry Among the Loyal

Like most technology companies, Research In Motion used to surround BlackBerry smartphones in secrecy before announcing them at a showy event. For BlackBerry 10, however, RIM is going with a slow reveal.

About 250 politicians and bureaucrats squeezed into a gilded room at the Fairmont Chateau Laurier hotel in Ottawa on Wednesday evening for an advance look at some of the features of BlackBerry 10, free drinks and a chance to win one of the smartphones as well two BlackBerry PlayBook tablets.

Earlier in the day, Frank Boulben, RIM's chief marketing officer, said these sessions, which will be repeated throughout North America, are the first step in convincing consumers to give BlackBerry another chance.

Rather than “carpet bomb the U.S.” with advertising, Mr. Frank said during an interview at the RIM offices in Ottawa where the new phone's operating system is being developed, he plans to first win over existing BlackBerry users through in-person dem onstrations. Then, as the phone's as yet unannounced release date in 2013 nears, he will supplement that with online videos about its features.

“It's a BlackBerry brand, it stands for something,” said Mr. Frank, who is from France and who was a executive at several wireless carriers, mostly in Europe. “We have customers who have left us who want to come back. There's still an attraction for the brand.”

Given RIM's outsized importance in its home country, Wednesday's crowd was perhaps the ultimate captive audience. Few, if any, federal politicians in Canada dare pull out an iPhone or Android device in public. Government information technology bureaucrats probably don't need to be told that dumping BlackBerrys for other smartphones would not enhance their careers.
Wednesday's demonstration used a stripped down prototype of the phone which was enclosed in a plastic cover to disguise its ultimate form and shape.

As the company has during demonstrat ions for software developers, it emphasized the phone's novel system for gathering all messagesâ€"including e-mails text messages, social media updates and Twitter posts-in a single spot and linking them with data about the senders.

It was less keen to show off other features. Following the formal presentation to the crowd, a RIM employee demonstrating the phone said that he could not display the new phone's navigation app because it was indoors. Like Apple and its ill-fated new Maps app for iPhone, RIM is replacing Google as the source of its map data with Tom Tom.

On Thursday, RIM made an announcement that will sit well with government buyers like those at the reception. The company said that the cryptography system of the new phone as well as special BlackBerry 10 servers which will used by governments and corporations has been certified as secure by the governments of the United States and Canada.

Mr. Frank acknowledged that questions about RIM's financ ial viability have come up at BlackBerry 10 demonstrations he's held for large corporate users. But he said he's been able to eliminate those fears by explaining the company's current financial state, particularly its lack of debt.

Mr. Frank said that he joined RIM about four months ago “to be part of one of the greatest technology comebacks in history.” He added: “I think it's a very doable challenge.”

While limited, the demonstration on Wednesday was well received by at least three government information technology employees who were in the room along with senators, policy analysts and political staffers. When asked what they thought of the new phone by a RIM product demonstrator, they all broke out into broad smiles.

“I've been in for a long time,” one of them replied while all three said that they are waiting for a firm arrival date.

Analysts, however, are less optimistic.

On Wednesday, James Faucette, a analyst with Pacific Cres t in Portland, Ore., said in an investment note that “We believe BB10 is likely to be D.O.A.” He wrote, “We expect the new OS to be met with a lukewarm response at best and ultimately likely to fail due to the new and unfamiliar U.I., lack of complementary devices, relatively few applications and what we believe to be a general reticence by app developers to develop for the platform.”

Tom Astle, an analyst with Byron Capital Markets in Toronto who recently resumed covering RIM, isn't that pessimistic. But during an interview he fell well short of the Mr. Frank's bold prediction.

Noting that RIM's shares are now trading below the value of the company's assets, he said that any positive consumer reaction to BlackBerry 10 may boost their price.

“I don't think there will be some big recovery in the U.S. when B.B. 10 ships,” Mr. Astle, an iPhone user, said. “But there is some loyalty to BlackBerry. Anyone still using a BlackBerry has to be prett y loyal.”