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Originally posted on the Harvard Business Publishing website The iPhone is not just a device ... Smartphone News forum

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    KalebsDad78's Avatar
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    How Blackberry's Storm Could Swamp the iPhone

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    Originally posted on the Harvard Business Publishing website


    The iPhone is not just a device -- it is an entire business design combining the device, price, and application innovation market. If BlackBerry wants to capture share in this fast-growing market (smart phones are growing at about four times the rate of regular phones), they need to combat iPhone at each level of the business design. So far, they have a cool new device and they are talking about price, but their applications store has a long way to go.

    BlackBerry needs to enter with, 1) a radically better device, which they seem to have created now with the Storm, by having a touch screen that really does work like a keyboard too; 2) a radically better price -- $0 comes to mind; and 3) a fluid market for innovation - the way that Apple does with its App Store.
    The early reviews say that the Blackberry Storm has a touch screen that mimics a keyboard in feel, sound, and performance. We have not had the chance to use it ourselves, but if the reports are right - check off their first challenge.

    On the price--challenge number two --our Diamond Fellow colleague Professor Dan Ariely has a wonderful research paper, "Zero as a Special Price: The True Value of Free Products" in which he and his co-authors show that if you decrease price from 1 cent to zero you can radically change the uptake of one product over another. If BlackBerry's Storm enters the US with a zero price for the device, it is our prediction that it will gain significant adoption. This zero price should be made available to both new customers and as an upgrade for existing ones. When people are considering smart phones, they will easily choose free products of equal or better value to all other options, encouraging adoption.

    The third leg of Blackberry's business design challenge is to create a facile market for innovation which unlocks the creativity of end users, and has an interface that is as easy to use as the Apple App Store, which I have written about before. Creating a market in innovation lowers cost of creation, lowers risk for the manufacturer, and drives participation and commitment of users. What's not to like? They have begun this process, but the quality and depth of their user-generated applications has a long way to go, and their store pales by comparison to the Apple App Store.

    We think the most interesting potential of the Storm is that BlackBerry may have finally looked at the entire business system - device, price and market - instead of simply painting their old device pink, giving it a new name, and hoping for growth.


    The useful lesson for us all is that it is at times like these, when the blood flows through a veins a bit faster, and the fear of gyrating markets disturbs our sleep, that it is easier - for the bold - to look at the entire business design, and capture the high ground while others are busy dodging financial bullets.
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    I believe that when the Magnum drops Blackberry will have won over some of the Iphone lovers. I just tell them that we have cookies and they come running lol.
    bebe

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    Quote Originally Posted by thasweetone27 View Post
    I believe that when the Magnum drops Blackberry will have won over some of the Iphone lovers. I just tell them that we have cookies and they come running lol.
    Haha.... Lol!

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    As much as i want the storm to topple the iphone (not being biased but because of functionality) i dont see it making any sense to have a zero dollar entrance fee for the storm. If thats the case, im more than sure the monthly fees will compensate for the providers. We must not forget that companies are in it for the money. If its not profitable, then its worthless.
    The reason why rim made the storm is that they saw room for them to make more money, also the casual market is where they want to make a penetration. And since casual is in love with touchscreen, why dont we make one?
    Isnt that the same thing that Micro$oft did with the xbox name brand? The saw that they can make a product that will be competitive with the others and they also saw another way to make money.

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    The smartphone market is so new and soooo wide open that it would be foolish and counterproductive for RIM to invest all its efforts to chase the iPhone shadow. There are really so many niches within the market that open up literally every month because of advances in technology, and RIM is better off going after them. E.g. the Pearl Flip. Apple has absolutely nothing to compete with this device and its pricepoint. Slam dunk RIM.
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    I think RIM has to counteract the iPhone surge, which it did with the Storm but I still do not see the iPhone as a business device...YET!!! I know Apple is trying to break heavily into the corporate market but I think the corporate world still sees these phones to be a little juvenile. I do not mean that in the sense they are only for kids but as it relates to business.

    I truly "like" the iPhone and what it brings to the table but as a business user, the Blackberry wins hands-down, IMO.

    I think RIM has so many great things in the works, i.e., the "Magnum", and it can't do anything but continue to increase its market-share. While the iPhone will do the same, I do not foresee it doing so in the corporate world, at least not anytime soon.
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    I agree, for business funtionality, RIM still definitely rules the market.
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    A bold with a built in touch screen would be perfect, like how the Treos have normal navigation and the touch screen.

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    Quote Originally Posted by KalebsDad78 View Post
    I think RIM has to counteract the iPhone surge, which it did with the Storm but I still do not see the iPhone as a business device...YET!!! I know Apple is trying to break heavily into the corporate market but I think the corporate world still sees these phones to be a little juvenile. I do not mean that in the sense they are only for kids but as it relates to business.

    I truly "like" the iPhone and what it brings to the table but as a business user, the Blackberry wins hands-down, IMO.

    I think RIM has so many great things in the works, i.e., the "Magnum", and it can't do anything but continue to increase its market-share. While the iPhone will do the same, I do not foresee it doing so in the corporate world, at least not anytime soon.
    The storm seems to be taking the smartphone "device" arena by storm (pun). I still haven't tried it out yet, but have heard and read alot of good stuff.
    I do disagree with you about the Iphone being beat hands down. Once outfitted with the correct apps, which can all be gotten for free, it is right up there with the very best of the Blackberrys. Anyone that wants to argue that hasn't used an Iphone long enough to know.
    RIM and Apple will have some great new devices coming up in the future, also.
    Last edited by ikasen; 11-25-2008 at 09:33 PM.

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    can someone clue me in on the magnum? a link perhaps?
    "I am a robot, I like robots, I have a robot vagina." -JP,Grandma's boy

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    Quote Originally Posted by bassvictim View Post
    can someone clue me in on the magnum? a link perhaps?
    Link: http://advice.cio.com/al_sacco/rim_b...y_coming_in_09
    Last edited by ikasen; 11-25-2008 at 09:40 PM.

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    This is an excellent opinion piece Kalebsdad In many ways I'm 100% in agreeance with you. And you definitely have looked at this objectively and without blinders on.

    However, can you honestly think that RIM would benefit more from a 0$ handset than with a 99$ Storm?

    99$ is the best of both worlds. Easily 100$ less than the iPhone and enough to cover the majority of dealer/rep commission costs. Use the product as a loss leader while not entirely crippling their hardware margins.

    The thing to remember is that when you have something of value and you give it away for free you generally move more of the product; however, although RIMs ultimate goal must be to move more product they want to give their product value.

    Consider the RAZR V3 by Motorola. Possibly the best marketing EVER for a phone. There was never a phone so well known before it launched and that is because the phone was two things.

    1) Different. The V3 was launched with a name. Before that the closest thing a phone had to a name was the "Zach Morris phone" and that wasn't even official branding. It was also different due to size. The slimmest phone on the market when that was what people were looking for in a phone.

    2) Valuable. The phone was ridiculously priced. And let's be honest, if you weren't already on a blackberry (pager or 6xxx series) at the time you were running out to get the RAZR even though it was boasted at an unheard of 199$ out of the gate.

    These two items made it "the phone". Not it's quality. And definitely not because it was 0$.

    The same can be said about the Wii and PS3 and XBox 360. The same can even be said about the iPhone. (Different and Valuable).

    Can you name any free products that have that kind of craze behind them?

    So I guess I agree with you on almost everything, except price. RIM has never had a difficult time pricing their phones appropriately with subsidized prices. (Retail cost is another matter all together.) ;-)

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    Quote Originally Posted by KalebsDad78 View Post
    I know Apple is trying to break heavily into the corporate market but I think the corporate world still sees these phones to be a little juvenile...
    That Apple is trying for the corporate market seems to be the popular opinion. When you look closely I am not sure that their actions suggest so though.

    The problem is for the iPhone in the business world is that it does not meet basic business requirements, most notably security and therefore Sarbanes-Oxley. If you look around posts made by BES admins on forums like this you will hear many say "nope, didn't allow the iPhone, didn't pass the test".

    Apple will need to do a whole lot more than just make cool devices if they want to make any significant inroads in the enterprise.
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    I thought the bold was touch and keyboard?

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    The iPhone is an iPod with a cell phone built in. Since when did iPods become an essential business tool?

    The iPhone is strictly a consumer device. Anyone that wants to take a chance on it as a business tool will be greatly disappointed.

    If I ran a large corporation, I am pretty sure I don't want my executives running around with iPods. No matter how cool it is. If it costs me a little more for a Bold, I would gladly pay for it. I know I will recover my investment thru increased productivity and time savings.

    Waiting 15 minutes for an iPhone to pull email because I don't run Exchange is not going to work for me.

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