RIM Has Lost The War For Consumers - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Devices
Commentary
5/27/2011
03:37 PM
Eric Zeman
Eric Zeman
Commentary
50%
50%

RIM Has Lost The War For Consumers

Analyst says Research In Motion has fumbled its smartphone strategy so badly that it no longer has a chance of competing in the consumer market.

That's it. It's over. RIM's perpetually stale lineup of BlackBerry smartphones has cost it the consumer market, Wunderlich Securities analyst Matthew Robison said. He thinks RIM's inability to respond effectively to Apple's iPhone and Google's Android smartphones has negated all the growth it experienced between 2005 and 2008.

"We no longer anticipate Research In Motion recovering to participate in the mainstream of smartphone industry growth," he said. "Our long-term forecast anticipates a role supplying business-oriented devices, both midrange and high end, as well as cloud-based services via the BlackBerry Network. We expect the consumer mix gained over the past two years to churn off, and that earnings will decline after 2013 and eventually grow again on demand that is largely associated with business users."

Ouch. In other words, RIM did a great job pushing into the consumer market for a few years with its low-cost Pearl and Curve smartphones, but its insistence on bringing incremental updates to its smartphones isn't enough to keep that momentum going.

Robison believes that most consumers who have adopted BlackBerrys in recent years will switch to the platforms offered by Apple and Google, which have richer hardware and a wider selection of applications available for them.

Interestingly, Robison thinks RIM still has a future as an enterprise device supplier. While it is true that RIM's enterprise systems are top notch and its handhelds do a good job at providing secure access to email and other corporate data, that hasn't stopped businesses and governments from dropping BlackBerrys for iPhones and Androids.

Even more interesting, Robison said he thinks RIM has a shot at being successful in the tablet space with its PlayBook. "On the positive side, we believe the PlayBook continues to sell well relative to tablets other than the iPad, with minimal returns," he said.

"However, shipment rates have waned since initial volume from those that had been waiting for it. There is little indication that the PlayBook has registered with consumers outside the loyal BlackBerry installed base."

There's no question that RIM is stumbling about. It has barely introduced any new models during 2011, focusing instead on the PlayBook. Personally speaking, I can count a dozen people from my social circle who have switched from BlackBerrys to Android devices in the last year. The number of business associates I know who've done the same is much larger.

It's hard to find fault with Robison's assertions. Can RIM turn things around before it's too late?


Enterprise Connect is taking our deep mobility expertise and bringing it to your desktop with a one-day virtual event, The Future Of The Mobile Enterprise, to be held Wednesday, June 8. Ever-increasing mobility is perhaps the most important trend affecting enterprise communications today. Learn how to support and secure smartphones, deal with the effect of tablets on IT planning, and more. Register now.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Commentary
If DevOps Is So Awesome, Why Is Your Initiative Failing?
Guest Commentary, Guest Commentary,  12/2/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
Slideshows
Flash Poll