Apple Inc. (AAPL): Can This Smartphone Giant Surprise?

i) Better speed and memory: Apple Inc. (NASDAQ:AAPL) always upgrades its processors with every launch so more RAM and faster processor are a given.

ii) Thumbprint recognition: We are moving into the age of NFC and mobile banking, so device security has become a necessity. The new device will have thumbprint activation/recognition as an attraction to high-end clients.

Research In Motion Ltd (NASDAQ:BBRY) has a 6 month windows to generate consumer interest in its new devices because once the iPhones hit the market, they will steal the show. The thumbprint security features can also be a headache for BlackBerry devices because they will attract business executives which are BB’s primary target market.

BBM

Over the years, BBM has been one of the biggest attractions for consumers. In another major move, the company is opening its BBM service to rival devices. The financial benefit of this move as compared to the loss of exclusivity should be a point of concern for investors. The primary aim of this strategy is to allow loyal BB users to interact with their contacts on iOS and Android.

The limited number of applications of the BB1o platform is a weakness for the platform. There are reports that pretty soon all Android applications will become compatible with BB10. This will give a big boost to BB sales as it will combine the reliability of BB10 with user friendliness of Android.

Bottom-line

The Research In Motion Ltd (NASDAQ:BBRY) has rallied in the last few months due to positive market perceptions about the new BB10 operating system. Although iPhone and Android dominate the marketplace, fortunes can change pretty quickly in the smartphone industry.

To become a major player once again, BlackBerry needs to dominate in the high growth Asian markets. The Q5 and BBM portability are positives steps by the company and demand better valuations for the stock. The results of this quarter will give a valuable insight into long term potential of the BB10 and BlackBerry as an investment. Investors should ‘hold’ and wait for solid device data before going long Research In Motion Ltd (NASDAQ:BBRY).

Mohsin Saeed has no position in any stocks mentioned. The Motley Fool recommends Apple Inc. (NASDAQ:AAPL). The Motley Fool owns shares of Apple and Microsoft Corporation (NASDAQ:MSFT).

The article Can This Smartphone Giant Surprise? originally appeared on Fool.com.

Mohsin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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