Apple ‘assault’ on RIM needs some perspective
The NY Times had an article today about the assault of the iPhone on the BlackBerry. Key quotes:
An industry once characterized by brain-numbing acronyms and droning discussions about enterprise security is now defined by buzz around handset design, video games and mobile social networks.
At the end of last year, BlackBerry had a 40 percent share of the United States smartphone market, down from 45 percent at the end of 2006, thanks largely to the 17.4 percent share the iPhone grabbed in its first six months.
Later this year, phone manufacturers have promised to start selling smartphones running Android, Google software based on the open-source operating system Linux and backed by a coalition of 34 wireless-industry companies. Google’s idea is that Android can be a more open and a less expensive alternative to the proprietary mobile technologies of Apple, Microsoft, R.I.M. and Nokia in Europe.
Analysts say that R.I.M.’s greatest challenge in a consumer-driven smartphone industry may simply be creating devices that people admire and covet as much as the iPhone. Despite the faithfulness of its flock, R.I.M. is not there yet.
In a survey this year of 3,600 professionals by ChangeWave, a research company, 54 percent of BlackBerry users said they were very satisfied with their devices. Even so, the BlackBerry was a distant second in the survey: the comparable figure for the iPhone was 79 percent.
I’m not sure I would talk about the downfall of RIM so quickly. The BlackBerry is primarily an email device, and has its strength from being the best in its market. The BlackBerry is also aimed at corporations and professionals who want tight integration between their e-mail, calendar, address book, and their laptop.
The iPhone, however, is a mobile device geared to the consumer who wants rich-media functionality like music, movies, and web browsing. It’s clear from the lack of a physical keyboard that e-mail is not the primary function of the iPhone (and the inital lack of “push” functionality).
RIM should take development of their mobile devices in two directions: one for businesses (BlackBerry) and one for consumers (a new product which should not be called a BlackBerry). According to the article, RIM is in development of a touch-screen device (which they call the “apple killer”). It’s very important, however, that they continue to innovate on the BlackBerry as a business device independent of competing with Apple in the consumer market: make typing easier and faster, the screen larger, and integration of address book and calendar cheaper/faster.
True, Apple is adding the “push” functionality for the iPhone, which will allow it to receive email just like the BlackBerry. But the fact remains that having a physical keyboard is a huge advantage if your primary use is email.
I used to have a BlackBerry for Verizon, and according to the customer service people you have to have a data plan in order to use a BlackBerry on the Verizon network ($25-$45 per month in addition to what you’re already paying). I’m not sure how it works on other carriers, or if it’s true that RIM requires a data package and not Verizon, but it doesn’t seem in RIM’s best interest. I would gladly buy a Pearl so I could have my calendar, contacts, and phone all in one device, but right now I don’t need the email functionality. This makes me think it’s actually a Verizon requirement, unless RIM earns revenue from the data package as well.



