Can RIM keep up with Apple and Android?

Research in Motion reports its fiscal third quarter results Thursday and the big question will be: Can RIM keep up?

Financially, RIM’s third quarter will be solid on the surface. Wall Street is expecting earnings of $1.04 a share on revenue of $3.78 billion. Gross margins are expected to be 43 percent. For the fourth quarter, RIM is currently expected to report earnings of $1.19 a share on revenue of $4.24 billion.

But under the cover there are some real worries. Among them:

• Average selling prices. RIM has been using “buy one, get one free” promotions in recent quarters. The aggressive campaign may keep share, but it’s a worry to analysts. Piper Jaffray analyst T. Michael Walkley notes that BlackBerry’s lower priced phones are the hot sellers. As a result, RIM’s profit margins may get pinched in the February quarter.
• What can RIM do to keep up or leapfrog Apple’s iPhone and the Android handset army, which is dominating carrier roadmaps in 2010?
• Can RIM defend the enterprise? Job losses, weak IT spending and iPhone encroachment are all problem areas.
• What’s the software plan? RIM’s operating system is looking dated. Sure, RIM has acquired Torch Mobile to improve its Web browser, but the company is trailing on the mobile app front. Indeed, analysts say Motorola’s Droid is gaining share on RIM in Verizon accounts.