BlackBerry's New Samsung Tablet Shows There Are 'Too Many Cooks In The Kitchen'

BlackBerry Ltd BBRY is developing new tablets that are based on the Galaxy Tab S 10.5 from SAMSUNG ELECT LTD(F) SSNLF.

The new devices, which are expected to arrive this summer, will use BlackBerry's Secusmart encryption technology to help users counter eavesdropping. International Business Machines Corp. IBM will provide technology that separates work apps from more personal applications.

"I think there's too many cooks in the kitchen," Global Equities Research analyst Trip Chowdhry told Benzinga. "I don't see that being successful. You cannot build successful products by consensus. You build successful products by passion. In this relationship, I don't see any passion."

Related Link: Why 1 Analyst Thinks BlackBerry Is In 'Reinvention Mode'

One More Try

This isn't the first time BlackBerry has attempted to enter the tablet space.

"They brought one out several years ago and it failed," tech industry expert and analyst Jeff Kagan told Benzinga.

Samsung is also no stranger to the idea of lending technology -- either its designs or a full-fledged product -- to other companies. When Barnes & Noble, Inc. BKS stopped producing Nook tablets, it partnered with Samsung to promote rebranded Galaxy devices.

"Will it attract customers?" Kagan questioned. "Traditional BlackBerry devices, even though BlackBerry is not crashing and burning anymore, is not really growing. I don't really expect this to make a big difference."

Apple And IBM Did It, So…

IBM previously teamed up with Apple Inc. AAPL for a deal that is expected to help the Mac maker sell more iPhones to corporate clients. Chowdhry said that deal had a clear purpose.

"IBM will do what IBM wants to do on top of it," he said. "Apple will continue to do iPads and IBM will put its apps on it and push it [into the market]."

He said that BlackBerry/Samsung/IBM partnership differs in that it is "full of confusion" and lacks a clear message.

"It's pretty much noise," Chowdhry added. "I don't see any customer adoption. You cannot average out a product. When you have three different companies, you have three different agendas."

'Meager Market Share'

Kagan's outlook isn't overly optimistic.

"It's not really going to make a difference," he said. "If anything, it'll just help them strengthen their meager market share that they currently have. While it's important for them to do this, and while it'll be helpful, I don't expect it to change anything in the marketplace."

As a former BlackBerry user, Kagan hopes this tablet can defy the odds and help BlackBerry succeed.

"I like BlackBerry," he concluded. "I just didn't understand the direction they went in after iPhone and Android hit the market."

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

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Posted In: Analyst ColorExclusivesAnalyst RatingsTechBlackberryGlobal Equities ResearchIBMJeff KaganSamsungTrip Chowdhry
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