As far as the smartphone handset market goes, Apple has been stealing a lot of the headlines recently, with the launch of its latest video communicating iPhone and the attention-grabbing iPad. But its key North American rival, RIM, may have a few surprises of its own in coming months. It looks like the BlackBerry OS 6.0 could make something of a stir if it really is a “quantum leap” as RIM’s ceo Jim Bassilie suggests. And a couple of high-end devices are planned for the second-half of the year.
Research In Motion shipped 11.2 million devices in Q1, notching up its 100 millionth BlackBerry sale in the process. Interestingly, Balsillie also suggested that tiered and usage-based data pricing will be positive for RIM, as a less data-hungary option than the iPhone for those upgrading their handsets.
So surely, with shipment volumes up 43% and revenues up 24% on the same quarter a year ago, the market should react positively? Well no. With the smartphone market outperforming every area of the broader communications market, RIM’s sturdy results were met with the company’s shares losing 5% of their value.
The fear is that competition from Android phones (including Droid handsets from Motorola) and the iPhone will whittle away RIM’s market position. The market may be harsh, but the launch of new handsets and the launch of an overhauled operating system could easily reverse investor sentiment, particularly if the rumoured touchscreen/ slide-out keyboard proves a hit.
Tags: handset, iPhone, RIM, smartphone
Android will rule in lowend smartphones and both RIM and Apple will feel the pressure, as the “smartphones are expensive” benefit the iPhone and RIM had some time ago doesn’t apply anymore. HP/Palm has in my opinion already lost and Nokia has scrapped Symbian for future phones replacing it with Meego, and Motorola will not survive in the now very competitive smartphone market. Hence Apple/iOS, RIM/BlackBerry, Google/Android and Nokia/Meego remain to fight it out. Sure, there’s also Samsung Bada, but they are going for Android too, and who is to make Bada apps for a worldwide market? We already have too many app platforms.
The Sony Ericsson K608 (and many other phones) from way back had a front camera and communicated video via 3G (much more useful than via Wi-Fi). No one used it, as no one cared about video conferencing at the time, like no one cared about video conferencing on PCs way way back, and still doesn’t, either way. Will anyone care now? No doubt it can still work as an effective marketing tool for Apple.
Esssentially I agree with your synopsis- one thing that strikes me is that operators are to some extent hampered by their legacy OS design- hense Nokia/ Intel designing Meego (which is is taking some time to come to the market, now due October). This has given Android an important headstart in both Smartphones and Tablets, though the launch of Meego and RIM’s new OS in the autumn may give Nokia and RIM a shot in the arm… Certainly consumer electronics and PC players are much quicker to announce tablet plans (see my other post on this subject).
Best,
Anthony
IMO.. RIM is going to be the next Nortel if they don’t get back in the game.