The Blackberry platform has suffered from the more nimble Apple and Android smartphone platforms over the last couple of years. Many believe that the company’s future is now in the hands of its new BB10 device, expected to hit the stores next year. But following a research note from James Faucette, an analyst at Pacific Crest Securities, suggesting that the BB10 software might be ‘dead on arrival,’ RIMs share price tumbled 9.1%.
Faucette’s analysis was damning. “We expect the new operating system to be met with a lukewarm response at best and ultimately likely to fail due to the new and unfamiliar user interface, lack of complementary devices, relatively few applications and what we believe to be a general reticence by app developers to develop for the platform.”
RIM responded quickly. At a sneak preview for federal politicians and their staff, managing director Andrew Macleod dismissed Faucette as ‘not a fan.’ "Two other analysts came out this week with some very, very positive reactions to the platform and some positive reactions to our prospects," he said.
Now the company has announced a key development in its plans for the product: FIPS 140-2 certification. "Achieving FIPS certification for an entirely new platform in a very short period of time, and before launch, is quite remarkable," RIM's head of security certifications, David MacFarlane, said in a statement.
Reuters notes, “The stamp of approval gives confidence to security-conscious organizations - including some of RIM's top clients like U.S. and Canadian government agencies - that the data stored on smartphones running BlackBerry 10 can be properly secured and encrypted.” Success in the public sector market will be key to RIM’s future.