Jobless rate climbs to 7.9% in January

U.S. job growth grew modestly in January and gains in the prior two months were bigger than initially reported, supporting views the economy's sluggish recovery was on track despite a surprise contraction in output in the final three months of 2012.

Employers added 157,000 jobs to their payrolls last month, the Labor Department said on Friday. There were 127,000 more jobs created in November and December than previously reported.

The unemployment rate, however, edged up 0.1 percentage point to 7.9 percent.

The closely watched report also showed an increase in hourly earnings and solid gains in construction and retail employment.

Coming on the heels of data on Wednesday showing a surprise contraction in gross domestic product in the fourth quarter, that should ease any worries the economy was at risk of recession, even though the unemployment rate ticked up.

GDP contracted at a 0.1 percent annual rate in the fourth quarter, largely because of a sharp slowdown in the pace of inventory accumulation and a plunge in defense spending.

A monster storm that hit the East Coast in late October also weighed on output, a drag that should lift this quarter.

Federal Reserve officials said on Wednesday that economic activity had “paused,” but they signaled optimism the recovery would regain speed with continued monetary policy support. The Fed left in place a monthly $85 billion bond-buying stimulus plan.

Economists polled by Reuters had expected employers to add 160,000 jobs and the unemployment rate to hold steady at 7.8 percent last month.

The Labor Department also published benchmark revisions to payrolls data going back to 2008. It said the employment level in March 2012 was 422,000 higher on a seasonally adjusted basis than previously reported.

It also introduced new population factors for its survey of households from which the unemployment rate is calculated. This had a negligible effect on the major household survey measures.

MODEST JOB GROWTH

Job growth in 2012 averaged 181,000 a month, but not enough to significantly reduce unemployment. Economists say employment gains in excess of 250,000 a month over a sustained period are needed.

Though the unemployment rate dropped from a peak of 10 percent in October 2009, that was mostly because some unemployed Americans gave up the search for work because of weak job prospects.

The share of the working age population with a job has been below 60 percent for almost four years.

All the job gains in January were in the private sector, where hiring was as broad-based as it was in December and declines in public sector employment remained moderate.

Steady job gains could help the economy weather the headwinds of higher taxes and government spending cuts. A payroll tax cut expired on Jan. 1 and big automatic spending cuts are set to take hold in March unless Congress acts.

The goods-producing sector showed a third month of solid gains, with manufacturing employment advancing for a fourth straight month. Construction payrolls increased 28,000, adding to December's healthy 30,000 gain.

Construction jobs are expected to rise further as the housing market recovery gains momentum. Housing is expected to support the economy this year, taking over the baton from manufacturing.

Within the vast private services sector, retail jobs increased by a solid 32,600 jobs after rising 11,200 in December. Retail employment has now risen for seven straight months. Education and health payrolls added 25,000 jobs in January after employment grew by the most in 10 months in December.

Government payrolls dropped by 9,000 last month after falling 6,000 in December. The pace is moderating as local government layoffs, outside education, subside.

Average hourly earnings rose four cents last month. Hourly earnings have been rising steadily. They were up 2.1 percent in the 12 months through January.

“It may be that we are now getting to a point in the labor market where we are going to see an upward creep in average hourly earnings,” said RDQ Economics' Ryding, chief economist at RDQ Economics in New York.

“That's going to be good for the consumer and they need help because they are being whacked by the payrolls tax increase,” he said before the release of the report.

The length of the workweek for the average worker was steady at 34.4 hours for a third straight month.
 

US Change in Nonfarm Payrolls data by YCharts

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80 fire departments battle 8-alarm blaze in Wisconsin

Emergency officials are on the scene of a 5 alarm fire at a plant in Burlington Wisconsin.

By Peter Nickeas




Tribune reporter

8:05 a.m. CST, January 31, 2013

More than 300 firefighters and paramedics from 80 departments across two states battled an 8-alarm fire overnight at Echo Lake Farms Produce Company in Burlington, Wis.

The fire broke out about 6:05 p.m. Wednesday was still smoldering this morning, with firefighters pouring water on hot spots, officials said.

“As of right now, we have departments from Racine to Milwaukee and Waukesha and Kenosha counties, and some from northern Illinois,” said Burlington City Administrator Kevin Lahner.

The factory processes egg products, Lahner said. There was some “ammonia present” and a hazardous materials team from Racine was monitoring air quality around the site.

Ten homes and an apartment complex nearby were evacuated because of smoke, Lahner said, displacing about 50 people.

Fireghters were regularly checked for symptoms of cold exposure because of the frigid temperatures, Lahner said.

The plant covers about 70,000 square feet and is one of the town's largest employers, according to Lahner. The plant's 300 workers were told to stay home today.

pnickeas@tribune.com
Twitter: @peternickeas

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Smartphone cases - Built to survive drops, floods - and lawsuits?

NEW YORK (Reuters) - The smartphone patent wars have lit up courtrooms around the world. Next up: the smartphone case wars.

The makers of protective cases that shield cell phones from coffee spills and sticky-fingered toddlers are entangled in countless lawsuits seeking to protect their designs.

The fights come as the mobile accessories market has gone upscale with some cases made by luxury designers costing more than the phones they cover. Some cases are billed as virtually destruction-proof, said to protect precious electronics from crushing blows or cresting waves.

Smartphones themselves are at the heart of a global patent fight, with Apple Inc battling South Korean giant Samsung Electronics Co over the design of the iPhone and iPad.

But now similar fights are escalating over what swaddles the gadgets, as the smartphone case market has become a roughly $1 billion annual industry, according to NPD Group, a market research firm. More than 100 million Apple and Samsung phones were shipped in the most recent quarter, making for more demand.

The damage claims in the case design fights are tiny compared with the smartphone wars, but the lawsuits could help spur a shakeout in a crowded market.

The biggest industry players sell their products at Apple and AT&T Inc retail stores, as well as at retailers such as Best Buy Co Inc. They have had success in getting court judgments against Chinese counterfeiters and domestic sellers of knock-offs, but the lawsuits involving one designer against another aren't as easily resolved.

Otter Products Inc, the maker of OtterBox cases, has become a frequent visitor to the courthouse.

The Colorado-based company has filed lawsuits in federal court in its home state against LifeProof, also known as Treefrog Developments Inc, and Mophie LLC for alleged patent infringement involving waterproof cases for iPhones, iPods and other devices. Mophie and LifeProof in court papers have denied the allegations.

Otterbox and Mophie did not respond to requests for comment. LifeProof declined to comment on pending litigation. Company spokesman Jonathan Wegner said, however, that LifeProof has programs in place to protect its own intellectual property.

The Ballistic Case Co, based in Florida, has also been a repeat plaintiff. The company has sued rivals Cell-Nerds LLC and Boxwave Corp for allegedly copying the look of its rugged "Shell Gel" series of cases, which feature a dotted back and come in an array of colors.

Designers invest significant resources in case styles and deserve legal protection, said Alan Weisberg, a Ballistic attorney.

The company has sold more than $12 million worth of Shell Gel cases, according to court documents, and they are available at major retailers. Both Cell-Nerds and Boxwave are smaller enterprises that sell cases online. The Shell Gel models are priced at about $35, while similar Cell-Nerds and Boxwave cases go for less than $10.

Earlier this month, a Miami federal judge allowed Ballistic's case against Cell-Nerds to move forward, while the Boxwave case is in its early stages in the same court. Ballistic claims it has so-called "trade dress rights" to the design of its cases and wants similar, rival products off the market.

An attorney for Cell-Nerds, Ury Fisher, said the company does not think Ballistic has accurately described its trade dress rights, and he noted that such cases are difficult to prove because plaintiffs have to show their product is readily recognizable to consumers.

An attorney for Boxwave did not respond to a request for comment.

For patent-based lawsuits to succeed, plaintiffs will need to prove another company is infringing their patents and may also have to show what is innovative about their designs and worthy of protection.

If found to infringe, some companies could be forced out of the market, said intellectual property attorney Christopher Carani of law firm McAndrews, Held & Malloy.

So far, however, the in-fighting among case designers does not show signs of slowing down the industry.

Casemakers have trotted out models they say are tricked out to withstand two tons of force or can be used to film movies underwater. At the recent Consumer Electronics Show in Las Vegas -- where new case designs seemed to be on display everywhere -- one maker even showed off a case lined in soft orange putty that is designed to become "rock hard" if the phone is dropped.

(Reporting By Erin Geiger Smith; Editing by Martha Graybow and Kenneth Barry)

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49ers' Culliver apologizes for anti-gay remarks

NEW ORLEANS (AP) — San Francisco 49ers cornerback Chris Culliver apologized Thursday for anti-gay comments he made to a comedian during Super Bowl media day, saying "that's not what I feel in my heart."

"I'm sorry if I offended anyone. They were very ugly comments," Culliver said during an hour-long media session. "Hopefully I learn and grow from this experience and this situation."

He said he would welcome a gay teammate to the 49ers, a reversal of his remarks to Artie Lange two days earlier during an interview at the Superdome.

"I treat everyone equal," Culliver said. "That's not how I feel."

He added that he realized his comments were especially offensive to many people in San Francisco and the Bay Area, which is home to a large gay community.

"I love San Francisco," Culliver said.

During the interview with Lange, Culliver responded to questions by saying he wouldn't welcome a gay player in the locker room. He also said the 49ers didn't have any gay players, and if they did those players should leave.

San Francisco coach Jim Harbaugh met privately with Culliver to discuss the remarks.

"I reject what he said," Harbaugh said. "That's not something that reflects the way the organization feels, the way the rest of the players feel."

The coach would not discuss if Culliver would face discipline from the team, such as a fine or loss of playing time.

"He pledged to grow from it," Harbaugh said.

The interview began with Lange asking Culliver about his sexual plans with women during Super Bowl week. Lange followed up with a question about whether Culliver would consider pursuing a gay man.

"I don't do the gay guys, man. I don't do that," Culliver said during the one-minute taped interview. "Ain't got no gay people on the team. They gotta get up outta here if they do. Can't be with that sweet stuff."

Lange asked Culliver to reiterate his thoughts, to which the player said, "It's true." He added he wouldn't welcome a gay teammate — no matter how talented.

"Nah. Can't be ... in the locker room, nah," he said. "You've gotta come out 10 years later after that."

The 24-year-old Culliver, a third-round draft pick in 2011 out of South Carolina, made 47 tackles with two interceptions and a forced fumble this season while starting six games for the NFC champion Niners (13-4-1).

He had his first career postseason interception in San Francisco's 28-24 win at Atlanta for the NFC title.

The 49ers participate in the NFL's "It Gets Better" anti-bullying campaign. Three organizations working for LGBT inclusion in sports — Athlete Ally, You Can Play, and GLAAD — reacted to Culliver's remarks and later acknowledged his apology.

"Chris Culliver's comments were disrespectful, discriminatory and dangerous, particularly for the young people who look up to him," said Athlete Ally Executive Director Hudson Taylor. "His words underscore the importance of the athlete ally movement and the key role that professional athletes play in shaping an athletic climate that affirms and includes gay and lesbian players."

Calling Lange's questions "real disrespectful," Culliver said he realized he was speaking to a comedian and not a journalist.

"That was pretty much in a joking manner," the player said. "It's nothing about how I feel."

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Follow Paul Newberry on Twitter at www.twitter.com/pnewberry1963

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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ABC orders pilots for “Big Thunder” drama, Gothic soap opera

LOS ANGELES (TheWrap.com) – ABC has ordered pilots for the dramas “Big Thunder” and “Gothica,” the network said Tuesday.

“Big Thunder,” which is written by “Ice Age” writer Jason Fuchs (pictured) and executive produced by Chris Morgan (“Wanted,” “The Troop”) follows a brilliant doctor in late 19th century New York whose family is given a once-in-a-lifetime opportunity to relocate to a frontier mining town run by a powerful, but mysterious tycoon. However, they quickly realize that not everything in Big Thunder is as it seems.

ABC Studios is producing the pilot, which is based on the Big Mountain Thunder Railroad ride at several Disney-owned theme parks.

“Gothica,” meanwhile, is described as a “sexy gothic soap opera set in present day” that “weaves together a mythology that incorporates the legends of Dracula, Jekyll and Hyde, Frankenstein and Dorian Gray among others.”

The project, written by Matt Lopez, comes from ABC Studios and the Mark Gordon Company.

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Sex to burn calories? Authors expose obesity myths

Fact or fiction? Sex burns a lot of calories. Snacking or skipping breakfast is bad. School gym classes make a big difference in kids' weight.

All are myths or at least presumptions that may not be true, say researchers who reviewed the science behind some widely held obesity beliefs and found it lacking.

Their report in Thursday's New England Journal of Medicine says dogma and fallacies are detracting from real solutions to the nation's weight problems.

"The evidence is what matters," and many feel-good ideas repeated by well-meaning health experts just don't have it, said the lead author, David Allison, a biostatistician at the University of Alabama at Birmingham.

Independent researchers say the authors have some valid points. But many of the report's authors also have deep financial ties to food, beverage and weight-loss product makers — the disclosures take up half a page of fine print in the journal.

"It raises questions about what the purpose of this paper is" and whether it's aimed at promoting drugs, meal replacement products and bariatric surgery as solutions, said Marion Nestle, a New York University professor of nutrition and food studies.

"The big issues in weight loss are how you change the food environment in order for people to make healthy choices," such as limits on soda sizes and marketing junk food to children, she said. Some of the myths they cite are "straw men" issues, she said.

But some are pretty interesting.

Sex, for instance. Not that people do it to try to lose weight, but claims that it burns 100 to 300 calories are common, Allison said. Yet the only study that scientifically measured the energy output found that sex lasted six minutes on average — "disappointing, isn't it?" — and burned a mere 21 calories, about as much as walking, he said.

That's for a man. The study was done in 1984 and didn't measure the women's experience.

Among the other myths or assumptions the authors cite, based on their review of the most rigorous studies on each topic:

—Small changes in diet or exercise lead to large, long-term weight changes. Fact: The body adapts to changes, so small steps to cut calories don't have the same effect over time, studies suggest. At least one outside expert agrees with the authors that the "small changes" concept is based on an "oversimplified" 3,500-calorie rule, that adding or cutting that many calories alters weight by one pound.

—School gym classes have a big impact on kids' weight. Fact: Classes typically are not long, often or intense enough to make much difference.

—Losing a lot of weight quickly is worse than losing a little slowly over the long term. Fact: Although many dieters regain weight, those who lose a lot to start with often end up at a lower weight than people who drop more modest amounts.

—Snacking leads to weight gain. Fact: No high quality studies support that, the authors say.

—Regularly eating breakfast helps prevent obesity. Fact: Two studies found no effect on weight and one suggested that the effect depended on whether people were used to skipping breakfast or not.

—Setting overly ambitious goals leads to frustration and less weight loss. Fact: Some studies suggest people do better with high goals.

Some things may not have the strongest evidence for preventing obesity but are good for other reasons, such as breastfeeding and eating plenty of fruits and vegetables, the authors write. And exercise helps prevent a host of health problems regardless of whether it helps a person shed weight.

"I agree with most of the points" except the authors' conclusions that meal replacement products and diet drugs work for battling obesity, said Dr. David Ludwig, a prominent obesity research with Boston Children's Hospital who has no industry ties. Most weight-loss drugs sold over the last century had to be recalled because of serious side effects, so "there's much more evidence of failure than success," he said.

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Online:

Obesity info: http://www.cdc.gov/obesity/data/trends.html

New England Journal: http://www.nejm.org

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Beyonce to finally face media in New Orleans

NEW ORLEANS (AP) — Beyonce is expected to face the media Thursday as she previews her halftime performance at the Super Bowl. But the focus will likely be on her performance at that other big event earlier this month.

The superstar hasn't spoken publicly since it was alleged that she lip-synched her rendition of "The Star-Spangled Banner" at President Barack Obama's inauguration last week. Her critically praised performance came under scrutiny less than a day later when a representative from the U.S. Marine Band said she wasn't singing live and the band's accompanying performance was taped. Shortly after, the group backed off its initial statement and said no one could tell if she was singing live or not.

It's expected that the halftime performance will be a main focus of her afternoon press conference, even though she'd likely rather concentrate on questions about her set list for Sunday and her upcoming HBO documentary, "Life Is but a Dream." The documentary is being shown for the media just before Beyonce speaks and takes questions, as expected.

There has been plenty of speculation about Beyonce's Super Bowl performance, including reports there would be a Destiny's Child reunion with Michelle Williams and Kelly Rowland (Williams has shot down such speculation). Some are also curious about whether her husband, Jay-Z, will join her onstage, as they often do for each other's shows.

Beyonce has teased photos and video of herself preparing for the show, which will perhaps be the biggest audience of her career. Last year, Madonna's halftime performance was the most-watched Super Bowl halftime performance ever, with an average of 114 million viewers. It garnered more viewers than the game itself, which was the most-watched U.S. TV event in history.

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Follow Nekesa Mumbi Moody at http://www.twitter.com

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Slot maker WMS Ind. to be sold for $1.5B

Gaming machines maker WMS Industries Inc. is being swallowed up by larger rival Scientific Games Corp. for $1.42 billion in cash and debt.

The deal announced Thursday values WMS at $26 a share -- nearly 60 percent higher than the stock's closing price on Wednesday. Shares shot up in early trading Thursday after the deal was announced, rising 54 percent to reach $25.14, just under its 12-month high.

Scientific Games primarily makes instant lottery tickets and software. Executives said on a conference call that grabbing WMS will allow it to quickly expand its offerings in arcade-type games, slots and video poker.

While Scientific Games executives on a conference call rejected the characterization that WMS is in the midst of a "turnaround," business has certainly been improving in recent months for the Waukegan-based game maker.

WMS, formerly Williams, said in November is fiscal 2013 first-quarter profit tripled on a combination of higher revenue and lower costs. 

The revenue was driven by new initiatives, including social gaming on Facebook and mobile phones, that's paid off.

Those new ventures have compounded the growth WMS has seen as it gambled on some other new outposts for its business.

In September, it received one of the first licenses to operate online poker games in Nevada, the only state other than Delaware to legalize some form of Internet gambling.                       

Online sites in Nevada are expected to go live in early 2013, but only people physically within that state's borders will be able to play. For everyone else, there's WMS's Facebook app, "Jackpot Party Social Casino."

The companies plan to save about $90 million through operating efficiencies by the third year they're combined. They expect the deal to close by the end of the year, pending regulatory and other approvals.

Executives say they are still working out the details on how the combined company will be run, so there's no word yet on whether the company's headquarters will remain in Illinois or if there will be any layoffs. A spokeswoman for WMS didn't immediately return a call seeking comment.

sbomkamp@tribune.com | Twitter: @SamWillTravel

WMS data by YCharts

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At 42 dead, January homicide count is city's worst since 2002

When Kimberly Common visited her mother in the hospital Monday, the two spoke of how much they missed Common's son, Antonio, who was slain 15 months ago at the age of 23.

By Tuesday afternoon, the family's tragedy deepened as Common's older son, Devin, 27, was fatally shot near their home in the Park Manor neighborhood a little past noon. As she stood on a sidewalk by her son's sheet-covered body, Common recalled his last words to her: "I'll be back. I'm going to the store."

"That's the same thing" Antonio said before he was killed in October 2011, the mother of two other children said as tears streamed down her face.

A little more than two hours later, a 15-year-old girl had also been shot to death, bringing to 42 the number of homicides so far in 2013, making this month the most violent January in Chicago since 2002. The bloody start to the new year comes as the Police Department hoped it had begun to turn the corner after a violent 2012 that saw homicides exceed 500, bringing unflattering national attention to Chicago.

At a press conference a day after meeting with President Barack Obama in the White House along with police chiefs from Newtown, Conn., and Aurora, Colo. — sites of horrible mass shootings last year — Chicago police Superintendent Garry McCarthy expressed concern and regret for the wave of gun violence as January draws to a close. Seven people were killed Saturday alone.

"It's disappointing," said McCarthy, who defended his crime prevention strategies while noting that he had sat down with some of the "brightest minds" in the country for four hours in Washington and heard little advice beyond what he's already been doing.

"You don't throw out everything you're doing because you had a bad couple of days," McCarthy told reporters. "And unfortunately today's (Tuesday) a bad day, too."

By Tuesday evening, three people had been slain — all in broad daylight — on a day in which temperatures soared to 63, a record for Jan. 29. In addition to Devin Common, a 20-year-old man was shot in the head in the East Side neighborhood at about 8 a.m.; the 15-year-old girl was shot at about 2:30 p.m. a few blocks from King College Prep after finishing classes at the North Kenwood high school.

With two days still left in the month, this marked the second consecutive January in which Chicago has hit at least 40 homicides. The 40 homicides last January represented a jump of 43 percent from 28 in January 2011. While Chicago never quite recovered over the rest of the year from an even sharper jump in violence over the first quarter of 2012, homicides fell or were flat in the year's last four months.

Crime experts caution it's way too early to suggest the disappointing January numbers mean violence in Chicago will continue at a similar pace throughout this year.

But Arthur Lurigio, a criminologist, said the January numbers sure aren't encouraging.

"It certainly bodes ill for this year's projected homicide figures because it appears to be a continuation of the violent trends observed through many months of 2012," says Lurigio, a professor at Loyola University Chicago.

The city's homicide woes continue to draw unwanted attention for McCarthy and Mayor Rahm Emanuel, including an article Tuesday in the satirical national publication The Onion that was headlined: "Chicago's Annual Homicide Drive Off To Most Promising Start In Decades."

But there was no humor to be found in violence-plagued spots principally on the city's South and West Sides.

Through Monday, the West Side's Harrison District leads the city in homicides with seven, three on Saturday alone, followed by the South Side's Englewood District with five. While it is clearly too early to draw conclusions, those numbers could be unsettling for police officials because throughout 2012, Emanuel and McCarthy had touted those two districts as successes after they flooded "conflict zones" in both with additional officers a year ago.

University of Chicago criminologist Jens Ludwig said a plausible explanation for the woeful January homicide numbers could be the budget problems confronting cities throughout the country. Emanuel's budget for 2013 calls for the hiring of an additional 500 police officers, but the police union has contended that number falls far short of the void created by cops retiring.

Ludwig said big cities such as Chicago could use help from the federal government.

"Cities can't run budget deficits when economic conditions turn down, which means that usually cities have to scale back police spending at the very time you'd want them to, if anything, increase the number of police on the streets," Ludwig said. "Only the federal government can help solve this with their ability to run budget deficits during economic downturns."

At the press conference Tuesday, McCarthy continued to emphasize that Chicago police are removing more illegal guns from the streets than authorities in any other major city in the U.S. During the first three weeks of January, he said, two of Chicago's 22 police districts seized more illegal guns than were collected in all of New York City.

But one reason for that, McCarthy said, was New York's tougher penalties for gun offenses. "... When people get caught with (illegal) guns in New York, they go to jail," he said. "… As a result they're not carrying guns with impunity."

For Devin Common's mother, the loss of her second son was almost too much to bear. Police said Common was on his way to buy coffee when he was shot Tuesday near East 75th Street and South Champlain Avenue.

Standing by his body at the crime scene, Common's sister, Jermaka, 26, cried softly as friends and neighbors embraced her and her mother.

"This didn't make no sense for him to get gunned down like that," she said. "This is not fair at all."

Tribune reporters Ellen Jean Hirst, Liam Ford and Carlos Sadovi contributed.

jgorner@tribune.com

jmdelgado@tribune.com

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RIM changes name, unveils BlackBerry 10 in comeback bid

NEW YORK (Reuters) - Research In Motion Ltd unveiled a long-delayed line of smartphones on Wednesday it says will put the company on the comeback trail in a market it once dominated, promising its BlackBerry 10 devices will wow consumers and businesses alike when they finally hit stores.

Signaling his hopes for a fresh start for the company that pioneered on-your-hip email, Chief Executive Thorsten Heins said RIM was abandoning the name it has used since its inception in 1985. From now on, he told tech analysts and other guests, the company will just be known as BlackBerry.

"We have transformed ourselves inside and out, and we have defined our vision ... which makes today the perfect time for another big announcement I want to share. From this point forward, RIM becomes BlackBerry." Heins said at the New York launch. "It is one brand; it is one promise."

RIM shares rallied initially on Wednesday, but soon fell to levels about 7 percent below Tuesday's close. Over the past four years, the stock has dropped as much as 90 percent below its 2008 peak as the BlackBerry lost ground to rival devices. But in the last four months its shares have more than doubled in value as buzz grew about the new devices.

The new BlackBerry 10 phones will compete with Apple's iPhone and devices using Google's Android technology, both of which have soared above the BlackBerry in a competitive market.

The new devices boast fast browsers, new features, smart cameras and, unlike previous BlackBerry models, enter the market primed with a large app library, including services such as Skype and the popular game Angry Birds.

Both new devices are sleek black numbers, one with the small "qwerty" keyboard that RIM made into its trademark, and one a pure touchscreen device that looks much like those its competitors already produce.

"We have definitely been on a journey of transformation, a journey to not only transform our business and our brand, but one which I truly believe will transform mobile communications into true mobile computing," Heins said.

RIM picked a range of venues for its global launch parties. Toronto's announcement was in the downtown art deco Carlu rooms, while the Dubai event was held at the $650-a-night Armani hotel, which occupies six floors of the Burj Khalifa, the world's tallest tower.

The New York event took place in a sprawling basketball facility on the Lower East Side of Manhattan, just north of the Manhattan bridge. The Blackberry has been "Re-designed. Re-engineered. Re-invented," RIM said.

RIM launched its first BlackBerry as a way for busy executives to stay in touch with their clients and their offices, and the company quickly cornered the market for secure corporate and government email.

But its star faded as competition rose from the likes of Apple and Google's Android operating system. The BlackBerry is now a far-behind also-ran in the race for market share, with a 3.4 percent global showing in the fourth quarter, down from 20 percent three years before.

In North America, the market that sets technology trends for the rest of the world, RIM's fourth-quarter North American market share fell to 2 percent, from more than 40 percent three years ago.

(Writing by Janet Guttsman; Editing by Frank McGurty, Lisa Von Ahn and Peter Galloway)

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