RIM's earnings disappoint, but BB7 and QNX point to an upswing, say executives

BlackBerry-maker Research In Motion's turnaround plan hinges, in part, on the numbers that it more easily can control — upping carrier partners and device options and marketing its PlayBook tablet to enterprises and consumers alike.

RIM disappointed investors again yesterday, announcing lower-than-expected second-quarter earnings and device sales during a call with analysts. As in past quarters, however, executives remained positive, insisting their plan was now (really) very close to fruition. A considerable part of that plan is the necessary success of BlackBerry 7, which it needs to, with some energy, carry along until it's ready to transition its smartphone line to the QNX platform.

In the first weeks of BB7's launch, "147 launches have occurred with approximately 90 carriers in 30 countries, and we've achieved over 600 certifications currently at 250 carriers, Co-CEO Mike Lazaridis told analysts on the call, emphasizing RIM's carrier partner buy-in.

"We're also excited to have already received 118 carrier certifications for our new BlackBerry 7-based Curve, the highest volume BlackBerry smartphone ever, which we expect to be launched by 165 carriers around the world in Q3," he continued. "This is the largest and most successful global launch of BlackBerry smartphones in our history."

Lazaridis' counterpart, Jim Balsillie, likewise presented an impressive spread of numbers:

-- sell-through of BlackBerry smartphones during Q2 was the second-highest ever, at 13.7 million;

-- shipments of BlackBerry 7 phones during the quarter were at the high end of RIM's expectation;

-- service revenue surpassed $1 billion for the first time in RIM history; and

-- in the first two weeks of Q3, sell-through outside of North America increased by nearly 50%, driven by the launch of the Bold 9900.

Nonetheless, PlayBook tablet sales were a meager 200,000 units and earnings were below expectations for the third quarter straight, "tainting" investors' confidence, as Rodman & Renshaw analyst Blaine Carroll told the Wall Street Journal.

However, RIM's third and fourth quarters, Balsille and Lazaridis promised, will be a new story, with the benefits of its cost reductions through layoffs being felt, BlackBerry 7 reaching new markets and enjoying aggressive promotional support from Verizon, AT&T, Sprint and T-Mobile, and an updated PlayBook around the bend.

Key changes to PlayBook 2.0 will include built-in native email, calendar and contacts — features customers have been waiting for, Lazaridis acknowledged — enterprise features such as BlackBerry Balance, which will enable users to manage other devices; an Android app player; enhanced Web browsing; and new apps, multimedia and video content.

At DevCon in October, RIM will also introduce the development platform for QNX, with prototype phones following shortly behind.

"We have learned the importance of ensuring an established vibrant ecosystem is available prior to commercial launch," said Lazaridis, and our QNX smartphones application environment development and final industrial design will be released into the market based on this experience."

With BB7 finally rolling out, and QNX growing closer to being a reality, RIM's troubles are arguably being addressed in no great hurry, but at the necessary pace.

Discussing the two platforms, which Lazaridis hopes will coexist side-by-side, he noted, "You have to be very careful with transitions. As we've talked about before, it takes a lot of work to do them properly. And one of the things that you're going to find is nothing happens right away."