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Apple's iPhone is threatening RIM's dominance in the smartphone market. In response, the Canadian company ... Smartphone News forum

  1. #1
    cherrichiodo's Avatar
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    Aug 2006

    BlackBerry maker battles back


    Apple's iPhone is threatening RIM's dominance in the smartphone market. In response, the Canadian company just launched three new models. Will the gambit work?

    As the first snow of the season dusts the Research in Motion campus next to the University of Waterloo, an hour southwest of Toronto, Mike Lazaridis polishes a tiny BlackBerry screen, places it on the table, and sends it whipping foosball-style through a sea of smartphone components. The company's co-founder and co-CEO then pulls out a circuitboard and points to an encased chip the size of a Scrabble tile.

    "That right there is the most advanced smartphone ever made," he says. "There's no phone that measures up."

    RIM may have the smartest chip, but that by itself won't be enough for it to thrive in the increasingly competitive smartphone market. In the decade since Mike Lazaridis first traveled the U.S. handing out BlackBerrys to corporate information officers, RIM has dominated the $12 billion annual U.S. market for smartphones, with a 50% share (see chart). Globally, RIM doubled its share this year, to 14% of the market, while still trailing Nokia, which has 42%.

    As customers replace their tired flip phones with iPhones and other PDAs, RIM finds its dominant U.S. market share under siege. The company must protect its enterprise turf, where its BlackBerry is still the favorite tool for e-mail among corporate IT managers, and at the same time compete with Apple, Nokia, and even Google in the consumer market, which is growing fast.

    The challenge comes at a crucial time for RIM. Its stock is down more than 64% from a 52-week high of $148 a share, similar to the performance of rivals Nokia and Apple. And while fiscal 2008 revenues and profits doubled, to $6 billion and $1.3 billion, respectively, growth is slowing slightly. In the most recent quarter, ended in August, revenues increased 88% compared with a year earlier, and profits jumped 72%.

    Last month the company held its first developers' conference, in Santa Clara, Calif. With 20 million subscribers, RIM found it easy to generate interest. The company was expecting 600 attendees and got 900. At an after-hours party to show off programs, the excitement was palpable.

    A 28-year-old software developer named Robert Kao jumped on a makeshift stage and plugged his BlackBerry into the overhead projector to demo a new software program. A hundred guys (and two women) chugged Coronas while Kao explained how his homing software could track lost phones, back up content, and, with the click of a button, obliterate all your e-mails and phone numbers. Think Lojak for your phone. Before he finished, a venture capitalist in the front row piped up, "I'll fund you."
    [read more]

  2. #2
    luciferseamus's Avatar
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    Apr 2008
    Thanks cherri,
    good read!!

    always doing something good for us!
    "If you ever lose your keys in a river of molten lava, let 'em go, cus' man, they're gone!!"-Jack Handey

  3. #3
    its me's Avatar
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    As they always say, once you go black, you never go back.... lol. Its true.

  4. #4
    rjs87's Avatar
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    RIM now just needs to put that chip to use, I'm glad there some market competition for them now. Competition is what makes products better, hopfully with this chip they'll achieve somthing great
    ~via BB (

  5. #5
    HeavyComponent's Avatar
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    TP2 :D
    Good looks on the info.
    T-Mobile HTC Touch Pro2 & I'm not coming back! :D


  6. #6
    here_miah's Avatar
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    thank god! that means that bb prices will drop soon! my son wants a pearl or a flip, but there too pricy for direct buy right now... can't wait to get my hands on one of those!!~via BB (

  7. #7
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    Jun 2007
    that program should be made let that fellow fund him if not RIM!!! lol

  8. #8
    green_light's Avatar
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    Great article, thanks.

    ~via BB (

  9. #9
    seabirdone's Avatar
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    thx C .. Awesome news....I'm spoilt for choice when I upgrade in Feb..Presently got an 8110... And on the 8th day God made a BlackBerry and look he saw that it was good acoording to its kind...and Rim came along and adapted it so we now have many species...LoL

  10. #10
    planneau's Avatar
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    Quote Originally Posted by its me View Post
    As they always say, once you go black, you never go back.... lol. Its true.


    That's a good way to put it.
    ..........SHAKE N BAKE..........

  11. #11
    Charlie Hustle's Avatar
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    IM glad they finally see that they need to accommodate the casual consumers. Most business heads/IT pros knows how feature full the BB is. But the average Joe dont know nor care. As the line get blurred between business and casual phones RIM knows that they need to be right in mix. Thats what apple is doing, and google also.

  12. #12
    SirDarksoul's Avatar
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    ~via BB ( As long as Nokia continues to produce a starter phone that's basically free even with prepaid service providers, they'll dominate the market. What RIM needs to do is create more buzz than Apple has with the IPhone. Sure there's a tremendous buzz about the Bold and the Storm in THE BLACKBERRY COMMUNITY.But how can RIM and we as BB users bring that buzz to the general public?

  13. #13
    ericnmegmom's Avatar
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    Great article. Thanks, Cherri.

  14. #14
    Berryadict's Avatar
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    ~via BB (
    I have good reason to believe that I'll probably be using a Blackberry for the rest of my life.
    However, I sincerely hope that their efforts as mentioned in this article not only include really neat os improvements, but also higher quality hardware than I've found on the Bold.
    My Curve feels much more comfortable in the hand, even with it's Quasimoto 2600 battery block on the back. It's 4.2 and 4.5 browsers have been much more sensible than the tiny script and left to right disappearing scroll of the 4.6.
    The battery latch and door are not flimsy as on the 9000, and the extended battery lasts far far longer than the 3g device. Designing sharper edges on a wider phone is beyond me. And burying the trackball under a panel, when the assembly needs to be popped out and cleaned regularly doesn't make sense.
    In conclusion, I'd like to see the build and design quality we appreciate in the Curve continued in future generations

  15. #15
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    yeah goo rimm!!thanks for the article

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