2ND UPDATE: CORRECT: Research In Motion Readies BlackBerry 'Assault

SAN FRANCISCO (Dow Jones) -- With new models of the ultra-popular BlackBerry reportedly waiting in the wings, Research In Motion is nearing a crucial period as it faces immense competition in the smart-phone market from the iPhone and other devices.

Later this month, the Waterloo, Ontario-based company (RIMM) is expected to launch the BlackBerry Bold -- the latest update to its well-known family of devices -- in the U.S.

That will be followed by a fold-up, or clamshell, version of the BlackBerry Pearl that is expected to hit the market later this fall and target the large base of customers currently using devices like the Motorola RAZR.

Another much-rumored device is a touch-screen BlackBerry, though RIM has never publicly confirmed its existence. However, images and other information have been widely disseminated across gadget blogs and other Web sites.

"Do I think they are going to come out with more models this year? Absolutely, " said Ken Dulaney, a wireless device analyst with Gartner Inc. "If all the pictures moving across the Web are true, then this is a very good time for RIM."

Research In Motion has kept largely quiet about its plans for new devices. The company's co-CEO Jim Balsillie is slated to deliver a keynote address Thursday at the CTIA Wireless I.T. & Entertainment Expo inSan Francisco.

Several Wall Street analysts have already baked sales estimates for the new devices into their forecasts for the company's next fiscal year.

"RIM is expected to launch a broad consumer assault in [the second half of 2008], with multiple handsets, including the Bold, a touch-screen, flip, slider, 3G Pearl and others," Mike Abramsky of RBC Capital Markets wrote in a note to clients last month.

The new products will come at a crucial time for the company. RIM is facing more competition than ever in the smart-phone category. In addition, the slowing economy has put pressure on sales growth in the sector. A Sept. 8 report from Gartner Inc. found that global sales of smart phones grew just 16% in the second quarter compared to the same period last year, which saw a year-over-year growth rate of 55%.

In addition, RIM is facing concerns about the timing of its own product launches - and the ability of those new devices to compete with the iPhone.

Those concerns have pressured the company's once high-flying stock, which peaked at $148.13 in mid-June and has plunged by more than 30% since, sinking below the $100 mark Tuesday to its lowest closing price in nearly six months.

"There are numerous variables at any one time that make it very difficult to project RIM's financials on both a near- and long-term basis," Morgan Keegan analyst Tavis McCourt wrote in a report Monday.

While McCourt said he did not know details of upcoming launches, he said the recent sell-off in the shares makes for an "intriguing opportunity." He upgraded the stock to an outperform, or buy, rating from neutral.

A 'Bold' move?

While Palm Inc.'s Treo is widely considered to be the pioneer of the smart- phone category, the BlackBerry has quickly overtaken its rival as a leader in the sector. The BlackBerry's focus on mobile e-mail, with an emphasis on security and reliability, has made it a strong favorite among corporate users, while models such as the Pearl and the Curve have been popular with the consumer crowd.

But the lucrative smart-phone market has attracted several new players. Devices running on the ubiquitous Windows Mobile platform are proliferating from manufacturers such as Samsung, Motorola (MOT) and HTC. Palm (PALM) recently launched a new version of its Treo, with additional devices expected later this year.

In addition, the market has practically been turned on its ear by the iPhone from Apple Inc. (AAPL). A 3G version of the device went on sale in July and is already believed to have sold nearly 3 million units, according to analysts.

The first phase of RIM's response to the competitive onslaught is the BlackBerry Bold. Announced in May, the Bold is a 3G smart phone that updates the basic BlackBerry design with a sharper screen and improved Web browser. The device has launched in several markets across the globe, and made its North American debut last month in Canada.

But the U.S. debut has been a question mark. The company has never announced a formal launch date, though analysts were widely planning on a launch sometime this month. But some reports that surfaced last week now suggest that the Bold may not hit stores until October.

"We have confirmed with multiple component suppliers that orders from RIMM have down-ticked in recent weeks," Rob Sanderson of American Technology Research wrote in a Sept. 4 report.

Sanderson said he attributes the order slowdown to "a later-than-expected volume ramp of Bold into the U.S." He cut his price target on RIM's shares to $ 190 from $205.

New designs = Big spending

RIM has been tight-lipped about other new models, though the blogosphere is rife with reports and pictures of new BlackBerry devices in the works for this year.

The most prominent among these is a touch-screen device reportedly named the BlackBerry Storm. The gadget blog Boy Genius Report -- which has landed other big BlackBerry scoops in the past -- reported last week that the Storm [once called the Thunder] is being evaluated by Verizon (VZ) in the U.S. This suggests a possible November launch for the device, the report read.

In addition, RIM has just launched its first clamshell BlackBerry that is basically a fold-up version of its popular Pearl device. The BlackBerry Pearl Flip is expected to go on sale in North America later this year under an exclusive arrangement with T-Mobile. No prices have yet been announced.

In a report before the formal launch, RBC analyst Abramsky said the new device, which carried the code-name of Kickstart before the launch, is aimed at the large base of customers now using devices like the ubiquitous Motorola RAZR.

"Kickstart is targeted at the massive Flip Phone user base (110 million-plus RAZRs and an estimated 50% of phones sold in US), most of whom have not owned a Blackberry," Abramsky wrote.

A strong hint of the stepped-up development activities came in RIM's last quarterly earnings report. Earnings more than doubled for the period ended May 31 on a strong gain in sales. But RIM predicted lower-than-expected earnings for the current quarter. During a conference call with analysts, Research In Motion CEO Balsillie said the company planned to increase its investments in the business ahead of "our strongest second half ever," referring to the second half of the calendar year.

"To support the anticipated growth in the second half, we've been investing and expanding in a number of areas to ensure we can scale to meet the opportunity ahead of us," Balsillie said on the call, referring to everything from new engineering hires to a national TV advertising campaign.

Gartner analyst Dulaney said that despite competition from the iPhone and other devices, it would be foolish to bet against the BlackBerry. He has been evaluating the BlackBerry Bold for clients and found that it has several advantages over the iPhone, including better battery life and better reliability.

"They don't make many mistakes over at RIM," Dulaney said.