Competition is stiff in the smartphone market. Though Research in Motion's BlackBerry is still the leader, with about 37.3% of the U.S. smartphone market, it's losing share to Apple's iPhone and Google's Android, both of which are picking up users at breakneck speed.
"If you look at the rise of the iPhone and Android-based phones, it seems like there's no end in sight," said Matt Thornton, analyst at Avian Securities. "And RIM is lagging those two platforms from a product quality standpoint, too."
That will hurt BlackBerry's increasing presence outside the U.S., he said, as the Canadian company concentrates on penetrating international markets.
"RIM needs a new product to turn around its perception," Thornton said. "But there's nothing imminent that could change the dynamic dramatically."
Though RIM is planning a software upgrade using a platform from QNX Software Systems, which it acquired earlier this year, Thornton says it's unclear if that shift will bring the necessary momentum to the table.
RIM is also planning to release its first tablet computer, dubbed the PlayBook, next year. It is also built around the new platform.
"If the QNX platform is viewed to be on par with Android and Apple's products, we could see RIM shares move higher," Thornton said. "But everything is a moving target in the tech world, and it's too early to put a ton of weight in the possibilities."
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