RIM Said to Plan Tablet for November to Take on Apple's IPad

Research In Motion Ltd., maker of the BlackBerry smartphone, plans to introduce a tablet computer in November to compete with Apple Inc.’s iPad, according to two people familiar with the company’s plans.

The device will have roughly the same dimensions as the iPad, which has a 9.7-inch diagonal screen, said the two people who wouldn’t be identified because the plans haven’t been made public. The device will include Wi-Fi and Bluetooth wireless technology that will allow people to connect to the Internet through their BlackBerry smartphones, the two people said.

RIM is racing to come out with a product to rival the iPad in the fast-growing market for devices that bridge the gap between smartphones and notebook computers. Apple, based in Cupertino, California, last month said it sold 3 million iPad tablet computers in 80 days after they debuted in the U.S.

RIM rose $1.45, or 2.6 percent, to $57.15 at 12:18 p.m. New York time in Nasdaq Stock Market trading, reversing an earlier decline of as much as 2.5 percent. The stock had dropped 18 percent this year before today, as Apple had climbed 22 percent.

Uphill Battle?

In the tablet market, RIM will have to demonstrate how its device can stand out against products including the iPad, which has attracted buyers because of its integration with Apple’s iTunes service and many software applications, or apps. More than 225,000 apps are available for Apple devices, the company said in June. RIM said in April it had more than 6,000 apps.

“With the success of the iPad, RIM faces an uphill battle,” said William Power, an analyst at Robert W. Baird & Co., who has a “neutral” rating on the stock. “RIM really has yet to demonstrate that it can roll out touchscreen technology to match the leaders in the space, most noticeably Apple.”

RIM’s tablet will capitalize on the BlackBerry’s e-mail capabilities and the phone’s popularity with corporate users, one person said. The tablet will be closely integrated with the smartphone’s e-mail system and will have similar security for messaging, the person said.

The RIM tablet will also have front- and back-facing cameras for videoconferencing, Rodman & Renshaw’s Kumar said, citing sources at suppliers in Asia.

“I don’t think it’s a zero-sum game,” he said, saying that innovation by Apple, RIM and other competitors will increase the size of the tablet market.

Hewlett-Packard Co., which bought smartphone maker Palm Inc. this month, said it plans to produce a tablet device that runs on Microsoft Corp.’s Windows operating system. Korea’s LG Electronics Inc. said this month it plans to introduce a tablet computer in the fourth quarter that runs on Google Inc.’s Android software. Microsoft Chief Executive Officer Steve Ballmer said yesterday the software company plans to increase its focus on tablets.