🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

UPDATE 1-RIM opens software store for BlackBerry

Published 04/01/2009, 02:47 AM
Updated 04/01/2009, 02:56 AM
MSFT
-
NOKIA
-
SOWGn
-

* New application store opens in Britain, Canada, U.S.

* Giving 80 percent to developers, more than rivals

(Adds statement confirming opening, Nokia)

By Wojtek Dabrowski

TORONTO, April 1 (Reuters) - Research In Motion has launched an online store selling entertainment, games, news, and travel applications to its BlackBerry users.

RIM said on Wednesday its online store was immediately available to BlackBerry owners in Britain, Canada, and the United States.

Unlike the iPhone application store of rival Apple Inc, which offers 70 percent of revenue from each piece of software to the developer, RIM plans to offer 80 percent.

The rest of the revenue will be shared between RIM and wireless carriers, co-chief executive Jim Balsillie said in an interview. "We think that's a fair distribution of the economics," he said.

The company's media-rich BlackBerry smartphones, such as the Pearl, Curve, Storm and Bold models, compete with Apple's iPhone for retail customers.

Ontario-based RIM has pushed aggressively to diversify its user base beyond executives, lawyers, politicians and other professionals who use BlackBerrys to send wireless e-mail.

"I think we've firmly cut over to the broader consumer marketplace," Balsillie said.

Offering a slate of interesting and diverse smartphone software, from the practical to the entertaining, can sometimes mean the difference between keeping and losing a user -- someone who has spent money on such software may be reluctant to switch to a different device and have to pay all over again.

RIM first announced its plan to enter the increasingly crowded market for mobile software supermarkets last year.

Microsoft Corp is also working on a mobile phone software marketplace and has signed up partners such as Web music service Pandora, game publisher Electronic Arts, and social networking site Facebook.

Separately on Wednesday, Nokia, the world's biggest mobile phone maker, said on "thousands" of developers and content providers had registered to sell content in its Ovi online store, which will be opened in early May.

Microsoft and Nokia plan to offer 70 percent of application revenue to software developers.

RESULTS THURSDAY

RIM was set to report earnings on Thursday after warning in February its quarterly profit will come in at the low end of its forecasts. Still, it said it expects to add 20 percent more subscribers than the 2.9 million it earlier predicted.

It cited a variety of factors in the profit warning, including product mix, lowered channel inventory levels and a higher ratio of new subscriber sales to upgrades and replacement sales.

RIM shares have tumbled to about $45 on the Nasdaq from the year high of $148.13 they hit in June 2008. Analysts have expressed concern about the company's gross margins and its ability to maintain momentum amid a widespread recession.

Retail consumers have curbed spending, which may mean they are not willing to pay more for flashy new smartphones.

At the same time, corporations are trimming their budgets, which could prompt them to delay upgrading to newer BlackBerry models. (Additional reporting by Tarmo Virki in Helsinki; editing by Peter Galloway and Dan Lalor)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.