BlackBerry Torch Fails to Light the Way for RIM

The BlackBerry Torch was supposed to be a step in the right direction for Research In Motion (RIM), who has experienced a dip in revenue over the past year. Despite a Torch media event to create buzz for their latest device, it seems it won’t be RIM’s savior. According to analysts at RBC Capital Markets and Stifel Nicolaus, RIM only moved 150,000 Torches over the weekend. While 150k is nothing to sneeze at, it pales in comparison to other phone models. For instance, Apple sold 1.7 million iPhone 4 units in the first three days.

The Torch provided features that were severely lacking in earlier RIM products, but it may be too little too late for the business-oriented mobile device company. Features like a multi-touch screen, slide-out keyboard, and 5 megapixel camera are almost expected these days.

Even the new Blackberry OS 6 may not be enough to sway customers into a new device. Many may simply be waiting for the OS upgrade on their current devices rather than buying something new and very different from what they have now. OS 6 is supposed to roll out over the next few months, bringing more advanced features to the existing hardware. Updates will include better integration with social networks, as well as with external media like iTunes and Windows Media Player.

According to The Street Insider, Goldman Sachs called the Torch’s August 12th launch “underwhelming.” This seems to have spurred RIM to slash the price from $199 with a two-year contract down to $99. Definitely not a good sign. What is also underwhelming is the hardware under the hood. iSuppli and UBM TechInsights found that the Torch relies heavily on parts used in earlier RIM products. UBM points out that the brains of the unit, supplied by Marvell Technology Group, operates at a speed of 624 megahertz. This is well below the 1Ghz speeds which seem to be the norm in the latest smartphones.

In addition to problems with the Torch, RIM faces battles overseas as the UAE, Saudi Arabia, and India protest it’s security practices. While Saudi Arabia has decided that banning BlackBerry data entirely is not a solution, they still face opposition from India, United Arab Emirates, and Indonesia among others. These nations feel that their inability to watch BlackBerry data transmissions is a security threat. The Obama administration even became involved in the debate.

via WSJ

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Rahsheen has been a certified geek since before it was the thing to do. He started programming and tinkering in the 4th grade. Now, Rahsheen mostly writes on various sites about technology trends in social media and mobile. . He is also a musician, singer, rapper, writer, and producer. @rahsheen - +Rahsheen Porter - coachrah.com
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