There seems to be a lot of hand-wringing these days about the future of Research in Motion despite the fact it’s a $15-billion company with a global footprint and still plenty of sales growth.
According to the naysayers, RIM’s problem is the iPhone and emergence of smartphones such as Google’s Android, which offer a better experience, more features and a dizzying array of applications. In comparison, the BlackBerry continues to be a voice and e-mail device. The iPhone and Android are sexy, the BlackBerry is looking matronly.
Some critics have suggested RIM’s weakness is the lack of applications to transform the BlackBerry into more than just a great e-mail device. But if you scratch deeper, RIM’s troubles started long before Apple made applications such a hot marketplace.
To be truth, RIM’s biggest problem for years has been its terrible Web browser. While it was dismissed for awhile due to the speed of slow speed of wireless networks, the BlackBerry continues to get a failing grade as a way to surf the Web even as high-speed wireless networks have become part of the landscape.
It is puzzling why a company that is so innovative can’t find a way to deliver even a solid Web experience. This may be solved when the launch of OS 6.0 this week but it’s really a matter of too little, too late.
RIM has also been plagued by the fact it has never really become a multi-media device that could be used for photos, music and video. I visited RIM in Waterloo a few years, and one of their PR people showed me a Blackberry that had a pretty good music player. Unfortunately, that seemed to be the peak of it despite the fact music, video and photos are key parts of the mobile experience.
What’s ironic about the BlackBerry these days is its traction with younger users. From a few conversations, I’ve been told that while many young people don’t particularly like the brand because it’s not as cool as Apple or Google, they use a Blackberry because the keyboard makes it easy to do text-messaging and use social media services such as Facebook and Twitter. Who knows, maybe the BlackBerry can relaunched as a social media device with Twitter and Facebook baked into the OS.
As for speculation that RIM is going to be launching a tablet called the BlackPad, I agree with TechCrunch’s pessimistic view that the BlackPad has little chance of success. To me, RIM is a smartphone maker; it’s not a computer maker so I just don’t seem the BlackPad doing anything to steal the iPad’s thunder.
Instead, RIM should focus on making the BlackBerry a better, more user-friendly device. Do something to really, really improve the Web browsing experience, enhance the BlackBerry as a multi-media tool, and do whatever it takes to offer thousands of additional apps at lower prices or for free.
RIM is still a great company but it’s come to a major fork in the road. One path leads to continued glory and status as one of the leading smartphone makers; the other would see RIM become a second-tier player, which is not a good place to be.
More: Mashable has a good post on four ways that BlackBerry can stay relevant, highlighted, I think, by the willingness to embrace an open API>
I don’t think you can say a mobile hardware and software company can’t do a tablet. That’s like saying apple has no business in the smartphone coman because it’s roots are in computers. My Bold is a great media player. It plays my FLAC audio, I can drag regular 700mb avi movies onto my device without spending hours resizing or converting to MP4 and I’m not forced to use an applicAtion to do it. I can just drag and drop as if it was a memory stick and I can sync from iTunes if needed. The new stuff on 6 adds the polish and usability that it lacked.
I don’t think
I don’t think applications is where the issue is. I think the application store needs more engaging games. In terms of banking, content, social media and music applications it has all the big names.
Even if RIM is indeed going down what sounds like a futile BlackPad path, I don’t think they’re forgotten their core business. The lack of a decent Web browser has been a well-recognized problem for a long time, and RIM’s purchase (nearly a year ago now) of browser company Torch Mobile is part of the solution: evidence such as leaked OS 6.0 screenshots at Boy Genius Report strongly suggests that the problem is ending. I agree with you on the importance for the consumer market of doing a good job with social media: there are hints on that front as well.
So RIM may be about to make not only a questionable move but a solid one too. If so, any BlackPad flop shouldn’t hurt all that much, apart from some bruised egos.
Rohan,
I hope you’re right on all counts.
Thanks for the comment.
cheers, Mark
Agree completely that RIM is about to be marginalized without a significant move.
RIM makes a great mobile communications device – it does phone and text really well. Unfortunately, the upper end of the market is moving quickly beyond communications. The iPhone and the better Android devices are now portable computers that also include communications capabilities. And while they aren’t as good at RIM in the communications realm today, they are good enough for most everyone while being startlingly good at being computers.
Pictures, video, media playback, web browsing, dedicated applications – all the same things we use our PC’s for – this is where the market is headed, and the Waterloo gang is well behind the curve.
This is where I see this mythical “BlackPad” as a potential good thing. The device can be a commercial failure as a pad, but if it causes the RIM engineers to shift their embedded culture from mobile communications to mobile computing platforms, then it is a worthwhile exercise.
I have a Blackberry. I love my Blackberry. It’s true that the Blackberry browser is pretty much useless, but the lack of a browser doesn’t mean the Blackberry is a simple voice and email device.
The integration of Twitter, BBM, email and Facebook, all into the same inbox is a major selling point for me. I have an iPod Touch and iPad and have used an iPhone in the past and although the Apple devices are indeed nice, I really like the fact that on Blackberry, social networking is nearly a core part of the OS.
I also really like the music player on the Blackberry. I can simply drag mp3′s to the device (without iTunes). I like being able to expand the storage on the device. I like the fact that when I get a Twitter mention, Facebook message, email or BBM, the little red LED starts blinking.
I seriously don’t care about how the iOS has a billion apps for it. 99% of them are absolute garbage. All I ever use on the iPad is Tweetdeck, Safari, Zinio, Kindle and Goodreader. I don’t use iBooks because of the lack of content. Kindle is better for me because I can use it on my other devices and keep going from where I left off.
I just don’t get why so many iPhone users are writing articles about how RIM is going to fail or RIM is on the edge of failing if they don’t pull out the big guns. Sure some of the BB users are going to turn to Android and iPhone. Absolutely. Those platforms are doing some amazing things. But Blackberry is going to continue to hold a large share of the market. People love Blackberry because it is a true communication device and that is what it excels at.
OS6 is going to push social integration even further and I can’t wait. I also can’t wait for the Blackberry tablet. RIM is doing things with their tablet that Apple completely neglected with the iPad – making it essentially a larger screen for a tethered Blackberry phone. Brilliant. No worries about another SIM or data plan. Future proof with ensured compatibility for new cellular technology as long as you upgrade your BB. I have no idea why the iPad and iPhone have no integration capabilities. I hear people say, “well, that’s what Palm tried to do with the Folio and that crashed and burned” But the Folio was not what the Blackberry tablet will be.
Also, I don’t get the “too little too late” comments either. I mean, BB was way ahead of Apple in the cell phone/smart phone arena, right? Nobody said “too little, too late” to Apple and if they did, well, eating their words as they say.
Anyway, that’s my rant. I like iOS and Android as OS platforms and sure, they have a lot of potential, but I truly believe that Blackberry is the best communication and social networking platform and is going to get even better with time. There is room for competition in the smartphone market. Even if RIM loses a whack of marketshare to the other platforms, BB will hardly fade away.
peace out.
Jamie,
Thanks for the insight and comment. It’s good to get some perspective from a Blackberry user as a contrast to the iPhone/Android love-in.
cheers, Mark
I’m pleased to see someone mention the Palm Foleo. It wasn’t a commercial success but I always thought the idea of a screen/keyboard accessory for one’s smartphone (like an external monitor and keyboard for an ultraportable laptop) was a great one. If what RIM is really doing with its tablet is taking its own run at this concept, I hope they succeed.
*BlackBerry
Eh… I disagree with you on some points. Yep, the browser is lousy. html5test.com gives it a solid 1 (yes, ONE) point out of three HUNDRED, Acid a 93/100…. horrible. Leaked video of the new webkit browser, however, shows that RIM will have the forerunning browser of any mobile device (short of maybe Froyo, as it can’t be accurately tested until release). Driphter has a few videos up on YouTube demonstrating this (if they haven’t been removed yet for term violations
) here:
http://www.youtube.com/watch?v=Iue_RYUYd8g
Test your desktop browser, too. Mine scored the same as the 9780, with 6 more bonus points. I’m not thinking RIM will be dragging behind for long
I am not entirely sure i understand this “Blackpad” rumor going around. If anything this could be attributed to rim’s purchase of qnix , more so a tablet which would be included in your cars…like the Ford activesynch. http://www.geek.com/articles/mobile/rim-building-an-8-9-inch-blackberry-tablet-for-your-car-20100411/
I totally agree Mark. The release of a new webkit based browser should definitely silence a lot of the critics and their demands for a better web browser on the BlackBerry. Like a previous commenter said I believe that there is enough market share for both Apple and RIM to co-exist and prosper provided that RIM focuses on it’s niche.
There is a single reason why will always have room. It’s something iphone’s “apple-control-all” and android’s “open source” will not achieve without changing the way they are fundamentally designed. Security.
Everyone at my firm (a multinational with a global footprint in 80 countries) want’s the entertainment capabilities of a android/iphone, but IT won’t even hear of it. The Blackberry is unbeatable in security and anyone who’s serious about corporate security knows that competition isn’t even close.
RIM’s got a foothold on a great number of companies that others can’t reach, so no matter how bad a browser it has, it has a market to fall back on. It’s not RIM thats loosing marketshare, others are creating new users for smartphone’s.
What most consumer orientated writers don’t realize is that’s RIM’s fork is between a complete business and consumer device, and a complete business and 2 tier consumer. And that’s still a pretty good place to be.
The key issue facing RIM is that is no longer capable of leading the market. Specifically, it cannot compete on hardware, software, features, apps or even price any more. As such, it is categorically and by definition a “follower” and is doomed to play a continuous game of catch-up against Apple and Android.
By the way, RIM’s main threat is not Apple; it’s Android. Android has opened up the floodgates to smartphone proliferation. With Android, the world’s largest hardware vendors (Samsung, HTC, Motorola, Dell, etc.) are bringing to market advanced smartphones that continuously trump RIM’s offerings. The speed of market entry and innovation has put RIM at a huge competitive disadvantage. Not only is it facing competition from huge global companies, it is losing mindshare, distribution (“shelf space”) and market share every single day. RIM is like a beat-up boxer that is forced to play “rope-a-dope” in the corner while sustaining continuous blows from Android and Apple.
So, what can or should RIM do? Contrary to your advice, the solution does not lie with features (better browser, multimedia support, etc.). These are table stakes now. The best RIM can do is try to play catch-up on features. No, RIM has to do two things right now to stop the bleeding and find a new way to compete:
1) Galvanize and lock-in its base. Blackberry users used to be extremely loyal. That has changed over the past year and I’m seeing more and more BB users jump ship to Apple and Android. RIM has to focus on customer retention right now. It’s not sexy, but it’s critical. If RIM continues to lose 10-15% of its base year-over-year, this game is over. The best way for RIM to lock-in its customers is: a) offer loyalty rewards and discounts to existing users for new upgrades and b) build in additional switching costs through Blackberry Messenger. In fact, the one thing that RIM is doing right is starting to focus its marketing and messaging on BBM. Drive more CRM and messaging based BBM features to create a social “glue” that will lock-in its customers.
2) RIM needs to change the rules of the game by re-segmenting the market. There aren’t just two markets: enterprise and consumer. Rather, the market is far more segmented (tweens, social users, texters, tech newbies & late adopters, vertical market users such as real estate, field sales, etc.). To be blunt, RIM will never be able to compete in the mass consumer market. However, it can potentially compete in segments of this market by offering unique service and features and discrete messaging and marketing.
Let’s face it: RIM is in a real pickle. In many ways, they’re betting the company on OS 6. That’s a big bet, especially for software that will, at best, match what’s in the market right now. In many ways, RIM needs to go back to its roots and execute well on discrete and small pieces of the market where it can “lead”. Aiming big right and trying to compete in the broad consumer market as a “follower” is a strategy that is doomed.
Derrick,
Thanks for the great insight. I’m in complete agreement with both of your suggestions, particularly the second one. For example, I think the youth market offers a lot of potential if RIM can position the BlackBerry as the “social smartphone”.
cheers, Mark
I have the my touch slide and it is a ton better than my old blackberry. Time for Blackberry to step it up!
There are many professionals that need a device that just does email with limited other services. Not everyone needs a ‘Pretend to be drinking beer’ app, and the ability to Tweet your every breath.
Blackberrys (not blackberries) are for professionals. Having owned an iPhone and BB, I can tell and feel the difference. If you were a suit, get a BB. If you wear jeans to work, get an iPhone.
Monkey Annoyance Experts & Atari FTW : BLig
[...] The web is killing the Blackberry? Thank goodness. It’s about time SOMETHING killed it. What a gruesome bit of technology. ~ Burdell [...]
After 2 plus years of being an iPhone owner, I’m being forced into a BB by the IT guy at my new job. Problem is, I’m a media professional. I need to blog, upload photos and videos, and I need to be up to date with what’s going on in the world of the consumers we cater to (think seattle coffee shop crowd). Sure, I can get a stupid Flip camera to shoot video, but when I’m remote at an event should I really have to offload to a computer and find wifi to poach to get some video on Facebook? I guess I’ll be carrying two phones, which is BS in this day and age.
RIM isn’t entirely at fault. Apple and Android need to build in the security features that have all these paranoid IT guys bowing down to RIM, so we can all be rid of these devices that are years behind the competition.
Why doesn’t RIM just create aps for the iPhone and Android that would let these phones communicate with a corporate BES?
Those who want their BBs are happy, those who want their iphone/Androids are happy.
Win for RIM!
new blackberry torch « matthewdlyons
[...] Canadian tech blogger, Mark Evans, posted an interesting piece on this issue yesterday. Click here to read his [...]