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Blackberry’s New Pricing Structure Worries Investors

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    Mark Spoonauer, Laptop Magazine editor-in-chief, on the future of Blackberry and Research in Motion.

  • Duration 4:56
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-- couple of minutes.

Research in Motion the company behind black very plunged more than 20%.

After it released its earnings.

An announcement made by the company CEO about a new pricing structure has investors' concern.

Users would continue to pay for certain services like advanced security but other services would generate less revenue joining us now.

Please mark -- our horses to some of the average.

Joseph doesn't really think about but it's -- it's affecting investors.

Well it's important because a lot of people don't realize is that the service part of -- business generates a lot of revenue and a lot of that comes from the carriers but because.

Steve decrease their market share so much they're now at four point 7%.

The carriers now realize that there -- -- much better bargaining position which means that rim is eventually gonna have to charge less for the services and that means less revenue coming in.

Let's talk about the future of the actual product itself the Blackberry because we were in a meeting this more we're talking about the demise program.

Six out of the seven people in that room had blackberries and are using their blackberries so.

There are a lot of companies because companies have trouble changing once I get used to the corporate culture once you get used to -- it.

I haven't seen the major shift yet either to the android servicer to -- have you from -- -- coming in drips and -- and a lot of it is because of the bring your -- device trend -- -- a lot of that is happening on the small business -- first and it hasn't yet made its full steam ahead of the recent ads and I'll tell you why because again corporates corporations tend to -- stodgy institution don't move too fast -- and when -- -- doing you're counting -- if you're switching to apple bills instead of the -- it makes it more difficult for the accounting department doesn't and there's an analogy in the computing -- to think about how many businesses are still on windows XP as opposed to Windows 7 -- windows -- there's a lot of -- involved.

With the like sometimes I've got commodore 64 you know but a couple of our intent regarding -- -- -- One argument people make in favor -- they have such a large growth potential that's like India is that going to be enough to offset what you're talking about -- they've done.

I don't think it's gonna be enough in the short term because even in those markets they're seeing some of their market share decline because.

On a lot of other devices like Samsung for example there just seen is a lot sexier they have larger screens and they have their own enterprise.

Developments that they're developing to make sure that their devices are more secure a couple hundred doing -- buster's in China as well you have -- galaxies is far outpacing.

The iPhone 5 right now yes -- but what rim has going -- though is that.

They do have 78 million subscribers and they're known for this is security they're known for compression technologies that make the web -- faster.

But if the user experience of Blackberry ten and developers don't get excited about the next platform and their -- one thing that has surprised me about about iPhone is or about apple in general is that they haven't taken advantage.

Of the problems that rim has to get into the business market they're so focused.

I'm getting the new jazz -- thing for the consumer rather than business user right they haven't tried to invade that -- does that surprise you.

By yes to a certain degree and I think it mostly on the iPad they're making a lot more in roads than they are with the iPhone and iPhone -- is still a back door sort of deployment I think.

Once and had sort of Microsoft might wind up helping apple on the since that.

A lot of people think that they're developing office for Iowa asked you that comes out -- I think a lot of people are gonna turning towards.

Iowa you make a great point about security that's why in -- security.

And authorities in the United States federal government uses Blackberry that's right but you tell us the baby boomers really retiring and math and they want that big screen they don't like to have that little.

Problematic typing this situation with my iPhone that's why they like -- Blackberry keys and yes do you see apple.

At stepped into that and having a bigger screen with a bigger keypad.

Yes I do I think ultimately all about user choice and people are gonna want an extra large iPhone and if they don't Samsung's going to do it.

What I do give him credit force they're coming out to devices types of devices for -- ten.

What is gonna have a large screen.

With a new predictive -- so if you're typing and use the -- shows -- -- -- -- -- up from the keyboard and we'll show up.

So they're actually going after baby boomers in that sense but they're also gonna make the traditionalists happy by still having that as.

We'll keep it either way for all his talk for all this talk about high tech that we've been doing with a segment mark.

The most popular gift that you had this Christmas season was a pogo stick right if you -- for benefits yes so -- -- and heads but the Nintendo DS also.

Did well I feel -- -- -- buyout would -- honestly.

In terms of the end users -- patents are talking about the security -- who would best capitalize -- I think if you think about who's concentrating more on enterprise -- never before like HPD.

And delta certain extent -- they sort of given up on the consumer marketplace so.

They might be.

Targets for mark spoon our who I'm Brad proud to say bought a pogo stick for his but but even though he's in all -- electronics good to see mark thank you very well federal.