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Do the Number of Mobile Apps Matter?

If you listen to Apple, size matters when it comes to the number of mobile apps offered to iPhone users. It’s seen as a strategic strength compared with rivals such as Android, BlackBerry and Microsoft, which have smaller but growing portfolios.

But in the scheme of things does size really matter? Does it really offer a distinct competitive advantage? Here’s where I’m coming from: On my iPhone, there are about 50 apps – many of them downloaded on a whim because they’re free. Of these apps, you know how many I use on a regular basis? Less than five, and I suspect that most people fall into the same camp.

It means if every mobile platform offers the same small group of must-have apps (let’s aggressively assume 250 apps will account for more than 80% of total usage), then having more than 100,000 or even 50,000 apps doesn’t matter.

Yes, I accept the argument that having more apps offers the opportunity to serve the needs of many niche markets. And I recognize there’s marketing mojo in having a large app collection. But if push comes to shove, size doesn’t matter at all as long as consumers have their “basic” needs covered.

I’ve been thinking about this thesis for awhile but it was thrust into the spotlight after reading Randall Stross’ column in the New York Times yesterday on Nokia’s use of Windows Phone 7. One of the people quoted was Thomas R. Eisenmann, a professor at the Harvard Business School, who said:

“What is often missed is the diminishing returns after 1,000 applications. If a platform attracts the thousand-most-popular apps, then it provides almost anything a reasonable person would want to do with a smartphone.”

I couldn’t have said it better myself.

Time to Pull the Trigger on the iPad?

I should have an iPad but I don’t…yet. As someone immersed in the digital world personally and professionally, an iPad should be part of my technology tool kit. As well, it’s difficult to tell people about the wonders of something when you have little experience actually using it.

In other words, it’s embarrassing not to have an iPad but I have somehow managed to justify it. Some of my “excuses” are I already have a MacBook Pro and an iPhone so I’ve got the “iThing” covered. As well, I’m not sure if there’s a fit or a compelling need within my technology tool kit. And then there’s the reluctance to purchase the first iteration of any new product, particularly given Apple’s habit of making the next-generation so much better.

But is now the time to bite the bullet and buy an iPad2? Is the newer, sleeker, thinner and faster iPad2 simply too compelling to resist? Has Apple eliminated the “barriers to entry”?

The answer is “Absolutely….definitely…I think so.” In other words, I’m closer to buying an iPad2 but not completely convinced…yet. As much as the iPad is uber-cool, I’m still questioning whether I need/want it or whether it’s the best option given the plethora of tablets hitting the market.

Some of my issues with the iPad include the lack of a USB connection and the inability to tether it to an iPhone (or another wireless device) without a “crack”. At the same time, I’m curious about Android’s “Honeycomb” operating system for tablet devices, which has been much touted.

In other words, I’m still torn about the iPad. That said, if I was walking by an Apple store AND they happend to have an iPad2 in stock AND there were a few dollars burning a hole in my pocket, you never know what could happen.


Can RIM Avoid Becoming the Next Nortel?

There was likely a collective sign of relief yesterday after Research in Motion unveiled better-than-expected second-quarter results, apparently due to strong sales of its new BlackBerry Torch.

After a slew of bad news that included troubles with governments in the Middle East and India over access to data, the launch of Apple’s iPhone4 and the stunning growth of Google’s Android wireless OS, there was the perception that RIM was on its heels after ruling the smartphone roost for so long.

While the second-quarter results will make everyone feel better about RIM’s prospects, it’s important not to get too carried away. It was one quarter in which expectations were battered down by the wave of negative news, including tepid reviews of the Torch. That said, the Torch seems to be a solid entry into the touch-screen market so while the critics may not be thrilled with it, it may have resonated with consumers, who still love the BlackBerry keyboard.

At the same time, one quarter does not a future make nor does it change the competitive landscape. The iPhone4 has continued to maintain Apple’s stature as the world’s most exciting smartphone maker. Meanwhile, companies such as LG and Samsung have been unveiling some stunning devices using Google Android. I recently used an LG phone that was so good, it made we question about an iPhone. And if Nokia ever gets its smartphone act together, it will make the competitive landscape even more intense.

While the Torch did a solid job of getting RIM’s smartphone mojo back, RIM still has a long way to go to make sure it remains in the first-tier smartphone makers. In some respects, it faces the same challenge Nortel faced trying to stay as a first-tier telecom equipment suppliers. While RIM’s financials are significantly better than Nortel’s, and it has strong leadership, RIM needs a lot more than the Torch to stay with Apple and Android (aka The Killer A’s).

The Torch moved RIM into the touchscreen market but BlackBerry still has its warts. For one, the BlackBerry App World store continues to be a nightmare for users and developers. This is a disaster at a time when consumers are personalizing their smartphones to match their professional and personal lifestyles. And while RIM’s Web browser is improving, it’s still not the fantastic experience that wireless users are coming to expect.

At the same time, RIM seems to be having a personality conflict between serving its core enterprise market and meeting the needs of younger, hipper consumers. The enterprise market pays the bills while the hipster market offers growth and cache. For example, RIM’s current advertising talks about a lot of its messaging features, which is an appeal to younger, instant messaging-crazy youngsters. Meanwhile, the BlackBerry continues to be a mediocre multi-media devices when it comes to music and video. This explains why PushLife, a music start-up, attract so much attention in a recent Financial Post article.

While it would be ill-advised to count RIM out, it’s too soon to jump back on the bandwagon. RIM still faces major challenges that will not go away any time soon. It means RIM needs to continue to bring it, otherwise it risks being the next Nokia in the smartphone market. And then there’s that nasty Nortel scenario of going from first to worst.

I Love the iPhone But….

Over the past couple of years, I have slowly, but surely, become part of the MacNation – armed with a MacBook, MacBook Pro and iPhone3.

And while the iPhone is terrific, I have come down with a bad case of smartphone envy after spending some time checking out the Legend HTC, which features Google’s Android operating system.

The Legend HTC impressed me with its functionality, features and, most important, its speed. All of of its applications opened and worked quickly, and the Web browser was impressively fast. This was a contrast to my iPhone3, which has become old and slow even though it’s less than two years old.

For anyone who might point to the strength of the iTunes store as a differentiator, the HTC Legend came with a variety of applications – Facebook, Twitter and YouTube – that met most of my needs. It also came with a GMail app, which performed quickly – again, a contrast to the iPhone’s sluggish Mail application.

I was also impressed with the Legend’s keyboard, which performed well for a touch-screen, although the keys are fairly small. The device itself is sleek, well-designed and comfortable to use.

If I wasn’t an iPhone user or tied into a contract for another 18 months, I would seriously consider getting an HTC Legend or, for that matter, an Android-powered smartphone.

After using the HTC Legend, it is easy to see why Android has gained some much traction in the smartphone market. The bottom line is the smartphone market now has three strong players: Android, the iPhone and the Blackberry.

The Web is Killing the BlackBerry

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>

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