RIM unveils new BlackBerry to counter Apple iPhone

NEW YORK (Reuters) - Research In Motion unveiled a new BlackBerry smartphone with a touchscreen and slideout keyboard on AT&T Inc's network to go head to head against APPLE (AAPL.NQ)s iPhone.

The BlackBerry Torch will go on sale in the United States on August 12 for $199.99 with a two-year contract with AT&T Inc. The device uses a new operating system and has a faster and easier-to-use Web browser, RIM said on Tuesday.

Analysts said the device does not represent a major advance on rival handsets as the devices consumer-friendly features were just enough for RIM to catch up with rivals.

"RIM is playing catch-up. This is clearly the upgrade for BlackBerry users, but otherwise not a lot here is super exciting," Altimeter analyst Michael Gartenberg said.

The Torch does not represent a "leap forward", but will help RIM compete with rivals such as iPhone and Google Inc's Android software, used in phones from several vendors including Motorola Inc, said NPD analyst Ross Rubin.

"This gets the experience competitive again -- if they can do that with the efficiency and stability that RIM is known for, then it's a positive," Rubin said.

RIM fell 1.8 percent to $55.95 on the Nasdaq stock market. Its Toronto-listed shares fell 3.5 percent to C$57.10. AT&T shares rose less than 1 percent to $26.67.

Some analysts have said the new device's success will depend how much marketing clout AT&T puts behind it.

AT&T declined to say how much advertising the company will spend on the Torch or how it would compare to the amount of money it spent on iPhone advertising.

"It will be as big a campaign as you've seen in some time," said Chief Marketing Officer David Christopher.

BlackBerry's security measures have come under scrutiny after the United Arab Emirates threatened on Sunday to ban some BlackBerry services unless RIM gives it access to encrypted messages. India's Economic Times reported that RIM will allow Indian security authorities to monitor BlackBerry services.

RIM Chief Technology Officer David Yach declined to comment on discussions with specific governments.

"I believe they'll have trouble pulling the trigger to shut down BlackBerry," Yach said. "Most governments in the world rely on BlackBerry."

NEW FEATURES

While the BlackBerry has long been the gold standard for corporate and government customers because of its speedy, secure email service, critics said it needs a big overhaul to expand its popularity beyond business customers.

One of the new features RIM touted is the ability to search any application, media content or contact by typing a word on in Torch's "universal search" function.

BlackBerry Torch users can type messages on the screen or a slide-out keyboard. It comes with a 5-megapixel camera with a flash and a built-in GPS for location-based applications.

The new BlackBerry 6 operating system also offers an inbox where users can access updates from social networking sites like Facebook and Twitter in the same place as their emails.

"It's a really special product because so much new goodness has been added to it." said Mike Lazaridis, RIM's president and co-chief executive.

The August launch was earlier than some analysts expected.

"I'm glad to see they got it out sooner rather than later," said Nick Agostino at Mackie Research Capital. RIM's success will depend on positive industry reviews and adoption by developers of applications, he said.

While Torch would be a good device for consumers looking to upgrade their BlackBerry, it may face a challenge in attracting new developers or consumers.

"There's not a lot here that is super exciting," said Altimeter's Gartenberg.

(Reporting by Sinead Carew in New York and Frank McGurty in Toronto, Additional reporting by Matt Lynley, Writing by Ritsuko Ando; Editing by Tim Dobbyn and Robert MacMillan)

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