RIM's new BlackBerry Storm seeing heavy customer returns?


Research in Motion Ltd.'s (NASDAQ: RIMM) new BlackBerry Storm caused quite a stir when Verizon Wireless released it for sale just last month. It was heralded as one of the first "real" serious competitors to the Apple, Inc. (NASDAQ: AAPL) iPhone 3G. Along with a complete, tactile touchscreen, the new Storm also -- of course -- featured RIM's well-known email integration. After all, portable, wireless email is what completely built RIM and the BlackBerry product.

But is the Storm not all that? There are reports that Verizon Wireless is seeing a return rate that should cause RIM executives to take serious pause. The touchscreen on the Storm, which features a physical button-like interface without buttons, is a possible culprit. Any new advance in user interface has the potential to backfire, which is possibly part of what's happening here. Silicon Alley Insider references a slew of Twitter comments that are pretty much disparaging the Storm as a piece of junk. While that's far from scientific, it's still the true.

What is the deal? Manufacturers can't please everyone, and there are always complaints no matter how stellar the product. There are sources who indicate that 40% to 50% of Storms are being returned. If even remotely true, that's a huge return percentage on the flagship of a company that basically created the market for mobile email. The Storm has had a decent amount of bad reviews, so it will be interesting to see if RIM's most exciting new product in years will fall flat or see only a middling response from customers.

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