Apple being Apple, there is no lack of coverage about Apple’s fiscal fourth-quarter results – the highlights being the sale of 11 million iPods, 6.8 million iPhones and 2.6 million Mac computers.
Within the press release, one sentence jumped out – at least to those of us north of the border: “Apple just reported one of the best quarters in its history, with a spectacular performance by the iPhone—we sold more phones than RIM“.
The fact Steve Jobs made a point of mentioning RIM makes it official that the “war” between Apple and the Blackberry maker is now on. What had been minor skirmishes as the iPhone gained traction has turned into a high-profile conflict between the world’s leading smartphone makers.
It has been my contention that RIM would be more than able to deal with Apple given its strong foothold in the corporate markets. But now I’m not so sure.
It’s not that the iPhone will obliterate the Blackberry, it’s that the iPhone has tremendous momentum while RIM seems to be madly scrambling with new devices (e.g. Bold, Pearl Flip) to catch a second wind.
And it’s not to suggest the Bold isn’t innovative or cool, it’s that the iPhone is seen as a multi-function device (fueled by the popularity of the App Store), while RIM is still regarded as mostly an e-mail device.
The iPhone is Baskin Robbins offering 32 flavors of ice cream, while RIM is selling chocolate and vanilla.
While RIM has aggressively pushed into the pro-sumer market and enjoyed success with the Pearl, it has been puzzling that it hasn’t done much more to launch a user-friendly Web browser and a solid music/video player.
The lack of a compelling Web browser has been staring RIM in the face for years. Sure, the lack of high-speed networks was an issue but with 3G becoming more popular, RIM should already have a kick-ass browser.
Perhaps the biggest problem facing RIM and the Blackberry is perception. The iPhone is cool and wrapped within the Apple/Jobs aura. RIM is RIM – solid and dependable. Not that there’s anything wrong with that, but what you buy right now.
More: If you’re looking to read the tea leaves, it is interesting to see venture capitalist and blogger Fred Wilson excited about using new Google’s G1 device. Henry Blodget asks how much of Apple’s value is attributed to Steve Jobs? He suggests 20%. More intriguing is the suggestion Apple needs to find a “strong No. 2 soon”.
Technorati Tags: Apple, blackberry, RIM
5 Comments
Mark:
You have a recurring theme about the iPhone and Apple in general…that their success is based on the fact that Apple and their devices are cool. I think you are missing the point. They do not sell so many devices because they are cool, they sell so many because they provide more value than other options…easy to use, effective and intuitive interfaces, compatible, and simply they do what they are supposed to do. Apple gets it. Their advertising reflects that they get it. As long as they continue with this philosophy and invest in the infrastructure to support their expanding business, they will continue to be successful…not just because they are cool.
E Guy,
True, I do use “cool” far too often. That said, I do recognize the iPhone is a multi-function device, and I think that’s what makes it so compelling.
Mark
This week RIM has been holding their first Blackberry Developers Conference with over 700 attendees in Santa Clara, CA. Yesterday they announced their App Store launch in March 09 (with 80% commissions to developers) along with carrier opportunities for involvement and PayPal integration for payment. Their goal is to have users buy off the device as with Apple App Store.
With the forthcoming launch of Storm on Verizon (as Versizon’s answer to iPhone with many additional features such as background processing), the most experienced 3G network in the U.S., and Bold at AT&T (if they can sort out their 3G network issues – now rumored for next week as AT&T held a Bold launch party in SFO this week) and a large installed based (especially in the enterprise market) they are not going away. In fact, RIM has finally announced they are ready to do business under the new playing rules.
Finally, any developer who is serious about being a business, will develop for both Apple and Blackberry (and even maybe even Android if it can take off). One point made in a presentation yesterday was “develop for one Blackberry and you’ve developed for their entire current line”.
And, having had six weeks’ experience with a Bold, it is a work pattern game changer in terms of when you can use a mobile devices. Suffice it to say that when I am truly mobile I have lost that “urgency” to get back to my laptop to keep current not only on email but also Twitter, reading blogs – such as MarkEvansTech, using Google Maps (where one can use Street View – not available on the iPhone but also available on Android) and many other applications that are not available on iPhone. Having a 480 x 320 stunningly crisp display (with over 20% greater dpi than iPhone) is a major contributor to this impact.
Perhaps the best example, when I am “mobile” I can make Skype calls via iSkoot, all the time also keeping up with my Skype chat messages in background while doing other activities.
It will be an interesting November and December for the smartphone market.
Update: It’s now official: AT&T announced at their earnings call yesterday that Bold will launch Nov. 4.
You have it wrong…. Apple is the one with the one flavour…. see this: http://www.ted.com/index.php/talks/barry_schwartz_on_the_paradox_of_choice.html