RIM to help app developers use ads, micropayments

By Wojtek Dabrowski

TORONTO (Reuters) - Research In Motion is making it easier for software developers make money from the applications they develop for its popular BlackBerry smartphone as the company falters in the face of stiff competition from rivals like Apple Inc.

New plans announced on Monday will let developers of games, news summaries and other "apps" insert advertising into the programs more easily. RIM will also help developers better integrate and process payments for premium content.

"Attracting developers is critical," RIM co-Chief Executive Jim Balsillie said in an interview. "Now, developers can have ad revenue and ad-sharing strategy in their applications."

Apps are becoming increasingly important for companies like RIM and Apple as the variety and price of available software helps consumers decide what phone to buy. RIM opened its own small application store in April, stung by Apple's success and far-wider offering.

A view that RIM lags Apple in apps, along with rising competition, has already brought several downgrades for the one-time market darling, most recently from Susquehanna Financial. Susquehanna on Monday downgraded RIM to "neutral" from "positive" on tougher competition on sales of high-end smartphones.

The downgrades have hit RIM shares. The stock, currently at $59.62, is well above March's year low of $35.05, but below its year high of $88.08, set in September 2008.

Some smartphone apps already feature advertising, while more costly apps come without. There are also basic versions of some apps available for free, but users can upgrade to a full-featured version for a price.

Apps range from those that help improve productivity to frivolous time wasters, like ones that let users simulate the sound of a fart with a smartphone.