Over the past few days taking a look at how RIM CEO Mike Lazaridis dogged questions at the D Dive Into Mobile Conference and subsequently the last quarter results which just came out (14.2 million handsets shipped), its clear that Blackberry is holding its ground and penetrating in 2G markets. The stats show that 92% of RIM’s growth comes from outside the US. Thats a extremely interesting figure and gels with Mike’s defense of 2G markets working well for RIM
Take India for example. I am sure Blackberry is doing well here and there is quite a craze for full QWERTY phones here, partly due to the rich status symbol that Blackberry is perceived as and partly due to the market situation that favors Blackberry. The Blackberry Messenger (BBM) works better than any Gtalk client or other solution that we have seen working on our EDGE network here in Mumbai. Same with emails, my iPhone or Android, no matter how classy they are, doing emails on them is never as fast and reliable as the Blackberry. RIM comes in with attractive plans for unlimited emails, BBM and Data, which actually works. A smartphone has several ‘good to have’ features like the camera, UI, apps and even a good browser. But the bare minimum to work on it is a genuine email / connectivity which Blackberry captures – specially in a 2G environment. Add to that the mass BBM crowd effect that keeps many youngsters / friends glued to the Blackberry even though they crave for a REAL smartphone someday. As we move towards 3G and smartphones start to catch momentum, we can be sure that the heat that RIM faces in US would spread across the globe. Unable to capture the power users with impressive smartphone / platform and holding on to the 2G markets can give RIM some revenues, life, numbers etc in the short run. In the long run, we know how the graph is shaping up!
Hey Annkur,
Nice post but one thought I would like to share with you. RIM never had a strategy for such a (big jump) growth. As clearly depicted by a service provider ad “BB boys”, it was meant for a niche group of professional (initially). They mostly fall among the early majority in “diffusion of innovations”. Even RIM being slow in its approach towards 3G (which is meant more for the innovators and early adopters), will be able to cater the market in its own unique way. Let’s hope for the best in the world of…….
Very valid point Piyush.
But then they shouldn’t talk about competing with iPhone, should they? Their words and
products don’t go together.
Thanks for the comment, sets the record clear on what BB is. And yes, we too hope for a good future for anyone who is bringing us interesting gadgets 🙂
The point is not who is right and wrong, even Apple claimed to be superior than Microsoft in the late 80’s (kinda joke), but the point for 2G in the developing market taking e.g. of India where no one see a 3G full usage before for next two years ( as per BCG and E&Y), let RIM hold it over.
And yes companies talk, this is where the PR machines are paid for as we all know “Talk is Cheap” or who will write for it.
Thank you