The New York Times published a borderline bizarre story today that seems to suggest RIM’s best days are days are behind it given increased competition.
The timing and content of the story is odd for a number of reasons. BusinessWeek and other publications have already beat its readers over the head with the topic.
The thesis is bollocks for a number of other reasons.
It is true that there is an additional layer of competitive intensity with Apple in the market. Nokia has introduced underrated devices such as the N95 over the past year while Microsoft and its handset partners also have an impressive array of offerings available.
The smartphone market, however, is growing by leaps and bounds, which mean that there is ample room for RIM to put BlackBerrys in the hands of consumers. Currently, 10% of consumers own a smartphone or converged mobile device in IDC speak in North America.
Lastly, the story makes RIM out to be the smartphone market leader. RIM is a leader to be sure but Nokia, in fact, is on top of the worldwide smartphone market (48.5% share) when measured by shipment.
RIM, however, is the poster boy for the smartphone/converged mobile device market in North America which makes it the focal point of reporters and competitors.
Having said that and continuing with my propensity to publish lists, here are 5 reasons why RIM will remain a leader in the smartphone market if not the top dog.
1. Brand equity, especially among enterprise users. RIM is the Kleenex of enterprise e-mail. The BlackBerry is to wireless e-mail as Google is to search. It is a verb. RIM’s brand equity is on the way up too.
2. Endpoint security. No IT manager who cares about his or her job will dare put an iPhone in the hands of a corporate user; RIM has no less than a two-year lead on Apple in this area. Security may not matter as much to consumers but it is a factor that will keep Apple out of the enterprise for the foreseeable future.
3. The keyboard. The iPhone has received a lot of attention because of the touchscreen. It may look good but the touchscreen is highly impractical for users that care more about messaging - they won’t to fiddle around with overly sensitive touchscreens.
4. The market. A rising tide lifts all ships. RIM will reach even higher peaks as it’s a leader in its field. This means the competition angle is overdone. Media have predicted the coming demise or decline of RIM for years now. Remember Good? How about Danger? Both companies, and others, were supposed to help sink RIM. It is true that smartphone competition is more intense than ever but RIM is taking the right steps to enter new markets and grow accordingly.
5. Design. Have you seen RIM’s forthcoming 9000 series of devices? If the images on the Web are accurate representations of the forthcoming consumer-oriented BlackBerry, people will snap them up. RIM is not Dell. It’s products are now fashionable. It has quickly turned what was an ugly, squat device into a fashionable accessory for consumers in a very short period of time.
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