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May 12, 2008, 7:00 am

The BlackBerry is in for a bruising

By Scott Moritz

Research in Motion (RIMM) takes the stage this week to preach to a gathering of its faithful in Florida during the Canadian company’s annual Wireless Enterprise Symposium. But just as the BlackBerry maker seems to be reaching the height of success, its flock may well start to stray.

Not only will followers be tempted by new devices like Apple’s (AAPL) forthcoming business-friendly iPhone, other sect members will face excommunication as cost-cutting initiatives sweep through the office ranks.

For now, however, it’s party time for RIM. A few highlights ahead for the week in Orlando include a performance by John Mayer, and even hotter, the unveiling of the company’s first 3G phone, the BlackBerry Bold.

These have been very good times for RIM. European sales have taken off as has the stock, up 81% over the past year, and hovering close to a one year high.

It’s been a good run, but now come a new set of threats.The new BlackBerry Bold

Due to delays first reported by Fortune, the dazzling BlackBerry Bold will not be available in the United States until as late as August. This means Apple will beat RIM to the market in June with its 3G iPhone.

The hotly anticipated, speedier successor to the original iPhone will also have a deep price cut thanks to a planned subsidy by AT&T (T). The new iPhone is also designed for the sweetspot in smart phones - BlackBerry’s business e-mail niche. Apple says it will license software to allow the iPhone to work with Microsoft’s (MSFT) Exchange platform for office e-mail as well as calendar and contact syncing.

And according to Cisco (CSCO), the iPhone business plan seems to be marching along. On an earnings call with analysts last week, Cisco chief John Chambers said the new iPhone has some of Cisco’s office network security system loaded on. “The upcoming software version 2 for the iPhone incorporates Cisco’s VPN technology,” Chambers said.

Having the networking giant involved with Apple’s business play certainly can’t be comforting to RIM.

Another potentially unsettling development is Nokia’s (NOK) upcoming plan to offer a series of BlackBerry lookalikes through AT&T. The new phones, starting with the E71, will also work with Microsoft Exchange and use a Nokia managed e-mail server, a delivery and security system akin to the BlackBerry approach, says one source familiar with the plan.

BlackBerry fans have seen threats like this before. Good Technology had a popular business e-mail system favored by Palm (PALM) Treo users. Motorola (MOT) acquired Good in 2006, and so far has failed to make much added headway against RIM. If anything, RIM’s one-trick killer-app ability to deliver instant, secure e-mail has been extended beyond professionals to consumers attracted by the sleeker phone designs, GPS navigation, music players and cameras.

On Monday, RIM announced a plan to start a $150 million venture capital fund to spur development of applications on the BlackBerry platform. The move - made along with RBC and Thomson Reuters - is similar to the $100 million venture effort that Kleiner Perkins Caufield & Byers announced in March to develop software for Apple’s iPhone.

A good part of RIM’s success is reflected in the stock’s rise, which has so far defied the slowing economy and sluggish corporate information technology spending. But the new product delay coupled with arrival of Apple and Nokia’s BlackBerry killers, may challenge RIM’s perennial winner status.

To be sure, a lot can be made of BlackBerry’s huge sales opportunities overseas where RIM has a very good chance of repeating the business e-mail success it had in the United States. And some RIM analysts see some big promise in the a crop of new BlackBerries coming out in the coming months.

TD Newcrest analyst Chris Umiastowski points to two phones in the works that should help restart the BlackBerry sales cycle. One is a flip or clamshell styled phone code-named KickStart that will launch with T-Mobile this fall, Umiastowski wrote in a report. And the long awaited touchscreen answer to the iPhone, which is apparently dubbed Storm, is due out in late fall, he notes.

But there is a different sort of storm on the horizon, in the form of spending pressure. It used to be common practice amoung businesses to hand out BlackBerries to an entire staff of go-getters. But the devices are not cheap, about $200 and up, and the monthly service contracts, and revenue sharing payment to RIM are large numbers on the business expense list. Some companies looking to attack costs have targeted the BlackBerry line item.

Here’s one example: Honeywell (HON) has recently taken its belt tightening efforts in a notch and told employees in some units to prepare to turn in their BlackBerries.

Honeywell, an aerospace and electronics giant, isn’t exactly under the gun in terms of immediate economic pressure - the company increased it profits by 22% last quarter on 10% sales growth. The point being, if the strong players are looking for places to cut the fat, one can imagine how the budget police in industries like banking, airlines, autos might be viewing BlackBerries these days.

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April 2, 2008, 2:23 pm

Yahoo launches new mobile services

By Michal Lev-Ram

LAS VEGAS — At a moment when Yahoo desperately needs to wow investors, the company unveiled a handful of enhancements to its mobile search service that are also being offered by rivals Google and Microsoft.

The announcement, made Wednesday at the CTIA wireless show in Las Vegas, includes a new voice-enabled search function that allows consumers to look up restaurants and websites by speaking into the phone. This could be a useful feature for people without QWERTY keypads on their phone, or for those who want to look up information while driving. The only problem is, Microsoft (MSFT) already offers a similar application on its Live Search mobile service.

Yahoo (YHOO) says its new voice recognition feature can adapt to a user’s voice over time and is now available for download on select Blackberry devices, including the Pearl and Curve. More compatible devices will be added in coming months.

Yahoo also unveiled a search box that will sit directly on a phone’s homepage, which will allow users to look up whatever they want without having to open their browser — a feature similar to a Google (GOOG) software “shortcut” for cell phones launched just last month.

On top of these features, Yahoo also plans to offer a downloadable application that tries to predict a user’s search as he or she starts typing. This is similar to the search assist function on Yahoo’s online homepage (accessible on a PC) but is the first such feature to become available on a mobile device. In other words, Microsoft and Google aren’t one step ahead on this one. Yahoo says its new recommendation tool can cut down on the amount of time it takes to conduct a search from a cell phone. Currently, this function is only available on Apple (AAPL) iPhones, which come loaded with Google applications like YouTube videos.

The new enhancements to Yahoo’s mobile search application will likely make it a smarter, faster and easier to use service. But, with the majority of the just-announced updates already available from the company’s rivals, it’s unlikely it will be enough to significantly differentiate Yahoo and deliver the much-needed pizazz investors are looking for as the company tries to fend off a takeover bid by Microsoft.

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March 19, 2008, 12:00 pm

Google see rise in mobile web use

By Michal Lev-Ram

Long before it unveiled its Android operating platform, Google had its eye on the mobile market, an industry that reaches an estimated three billion people worldwide. The company’s main strategy? Pushing search, maps and e-mail onto cell phones in the hope of becoming the leading source of information — and ads — on the tiny screen.

Now Google (GOOG) says its efforts to make mobile services faster and easier to use are paying off. On Wednesday the company released new numbers showing mobile Internet activity on select devices recently surged, following its release of a software “shortcut” that reduces the time it takes to conduct a search on a cell phone.

“We’ve long known that fast is better than slow,” says Matt Waddell, project manager for Google’s mobile division. “But when it comes to mobile fast is much better than slow.”

Google says users of its recently released shortcut — a small piece of downloadable software that installs a search box directly on a cell phone’s home screen — conduct 20% more mobile Web searches than previous users. The shortcut allows people to type a keyword right on their phone’s home screen to initiate a query, rather than having to first find and open their mobile browser and type in the URL of their preferred search engine.

The shortcut was made available to BlackBerry (RIMM) and Symbian devices in recent months, but Google says it will also work on Windows Mobile phones like Motorola’s (MOT) Q and the Touch by HTC starting Wednesday. The company also credits “time-saving fixes” for a recent uptake in Gmail use on the Apple (AAPL) iPhone.

According to research firm M:Metrics, the iPhone, which offers several of Google’s mobile services, is the most popular device for accessing news and information on the go. Nearly 50% of iPhone users accessed a social networking site in January, about twelve times the market average. And about 31% watched online TV on their device.

“This data indicates that the iPhone’s widgets [small applications accessible from the phone's home screen] are an effective means to drive mobile content consumption,” Mark Donovan, senior analyst at M:Metrics said in a statement. “Beyond a doubt, this device is compelling consumers to interact with the mobile Web, delivering off-the-charts usage from everything to text messaging to mobile video.”

But M:Metrics also found that iPhone users are more likely to earn more than $100,000 than the average mobile subscriber. That means that, despite Google and Apple’s efforts to make the mobile Web simpler and faster to use, it will likely take a long time for it to reach mass appeal with average consumers — those who earn far less than $100,000 a year. According to a recent Jupiter Research report, 25% of U.S. cell phone owners currently browse the Internet from their devices, while just 16% say they do so frequently.

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October 25, 2007, 1:48 pm

How to get the Blackberry Facebook app to work

Blackberrys may be the most popular smartphone in corporations - which is presenting a problem for some business people trying to download and use the new Facebook application. For security reasons, some big companies tend to restrict employees’ Web access on their Blackberry browsers. That appears to be what’s thwarting many Blackberry users who have downloaded the new Facebook application, but can’t use it.

The fix is easy - but read through the whole thing.

Support technicians in Ontario, where the Blackberry maker Research in Motion (RIMM), is located, are currently working on writing a “knowledge-base article,” which they’ll host on their site. They hope to have it up later today have just posted the workaround here. Good luck.

Here’s the fix that worked for me. Beware, however, that it won’t necessarily work for you.

Under “Options,” select “Advanced,” then select “Service book.” On my Blackberry, a file called “Desktop [IPPP]” was listed. This is the browser file that corporate IT departments can configure, blocking access to various web sites and services. What makes this tricky is that same file might be called something different on your Blackberry. The word “Desktop” can be changed by your system administrator. If you aren’t sure, I’d wait until RIM puts out its knowledge-base article, which ought to have a better way of finding that file.

In any event, I deleted Desktop [IPPP]. Then I performed a hard rest - meaning I removed the battery from my Blackberry and restarted it. Voila! I connected to Facebook.

In the unlikely event I ever want to use my Blackberry within to access web sites on my corporate Intranet, I can go back to the Service Book directory and select Undelete (via the Blackberry button) and “Desktop [IPPP] will reinstall. After a hard reset, it’ll work again, and Facebook won’t.

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