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Category: RIM
February 9th, 2010
RIM's BlackBerry, Apple iPhone rule smartphone roost
Research in Motion’s BlackBerry platform has a comfortable lead in U.S. smartphone market share with Apple’s iPhone a solid No. 2, according to comScore data. Microsoft’s Windows Mobile comes in third place.
The comScore data is notable as a contrast to the buzz-o-meter. For instance, RIM, which is sometimes portrayed as a has-been set to get pummeled by the iPhone, holds 41.6 percent of the smartphone market in the U.S. based on platform. Apple has 25.3 percent.
February 9th, 2010
RIM: BlackBerry sales on solid footing
While there is some concern about Research in Motion’s roadmap for its BlackBerry device, sales appear to be chugging along at a healthy clip, according to an analyst.
Piper Jaffray analyst T. Michael Walkley said RIM is delivering solid sales of its Bold and Tour phones in North American while the 8520 (Curve) is selling well internationally.
Walkley’s said RIM’s February quarter is shaping up well. Wall Street is expecting RIM to report fiscal fourth quarter earnings of $1.27 a share on revenue of $4.28 billion, according to Thomson Reuters.
Also: RIM reports strong Q3, shares soar. What competition?
Here’s a look at Walkley’s findings based on his channel checks:
Verizon: Aggressive pricing for BlackBerries as well as buy-one-get-one-free promotions are propping up sales. Walkley writes that:
The Blackberry Tour (right) and the Motorola Droid were the two top selling devices in January at Verizon. Further, Storm sales remained steady with continued positive feedback from customers.
AT&T: The Bold 9700 is the second beast selling device at AT&T behind the iPhone. AT&T has been cutting prices of the Bold too.
T-Mobile: The Bold is the only BlackBerry at T-Mobile, which has cut off the Curve 8900, Pearl Flip and older-model Curve.
Globally, the low-end 8520 Curve is selling well in Western Europe and Latin America. Inventory levels remain low.
Simply put, RIM sales appear on track and Walkley expects a new browser and a 3G Pearl to be announced shortly.
January 17th, 2010
RIM rolls out new BlackBerry apps for Lotus Quickr, Connections
Research in Motion on Monday will roll out two new apps for IBM’s Lotus Quickr and Connections software.
The applications, which are available through enterprises and resellers, are designed to enhance collaboration in the workplace.
BlackBerry’s application for IBM Lotus Quickr is designed to make accessing libraries, folders and enterprise content easier to download. The Quickr application is integrated with BlackBerry email.
Research in Motion said its client for IBM Lotus Connections allows workers to build community, share bookmarks and activities and blog from the BlackBerry.
The Lotus applications are available immediately.
Here’s a look at Quickr:
January 14th, 2010
Patent wars: Kodak sues Apple, RIM for patent infringement
Updated: Eastman Kodak said Thursday that it has filed lawsuits against both Apple and Research in Motion over digital imaging patents.
Kodak launched its lawsuits on two fronts. Kodak filed a complaint with the U.S. International Trade Commission arguing that Apple’s iPhone and RIM’s BlackBerry infringe Kodak technology for previewing images.
Separately, Kodak filed two lawsuits against Apple in a U.S. District Court claiming that Apple infringed on patents related to digital cameras and computer processes.
In a statement, Kodak said:
January 5th, 2010
BlackBerry counter programs against Nexus One with Google's keywords
What do you do if you’re a Nexus One rival on a day where Google’s latest Android device is stealing all the headlines? You buy some keyword counter-programming.
If you do a Google search on “Nexus One” or “Nexus One phone” you get a nice BlackBerry ad at the top.
Now that’s counter-programming:
December 23rd, 2009
Another Blackberry outage affects 100 percent of N. American customers
For the second time in less than a week, Research in Motion is scrambling to deal with a widespread outage - this time affecting North America and South America, according to reports.
That company confirmed Tuesday night that messaging services, including e-mail, were experiencing “delays” in the Americas. A CNN report cites an e-mail that says that, at one point, 100 percent of its North American customers were impacted. Telephone service reportedly was not affected. The cause of the outage was unknow and reports that the service was coming back up came in early Wednesday.
Last week, an outage that affected users across the U.S. was reportedly caused by a Blackberry server that was preventing mail from being sent. That outage fell on Dec. 17, hours before RIM would report better-than-expected earnings and instantly became the darling of Wall Street.
Other coverage:
December 17th, 2009
BlackBerry users hit by outage
BlackBerry users were hit by e-mail delays and outages on Thursday.
According to a Verizon Wireless recording, the issue is with a BlackBerry server that’s preventing email from being sent. RIM is aware of the issue and working to resolve the issue, according to Verizon Wireless.
RIM said in an updated statement:
RIM has isolated and resolved the issue that was impacting some BlackBerry customers earlier this morning. Some customers may still experience delays as email queues are processed. RIM is continuing to investigate the cause of the issue and apologizes for any inconvenience.
Earlier today, many customers reported outages.
For instance, commenters on this CrackBerry.com blog post reported email problems from Delaware to New Jersey to Colorado to San Diego.
The timing of this outage leaves a little to be desired. RIM reports earnings later today.
Other reports on the outage:
December 17th, 2009
Can RIM keep up with Apple and Android?
Research in Motion reports its fiscal third quarter results Thursday and the big question will be: Can RIM keep up?
Financially, RIM’s third quarter will be solid on the surface. Wall Street is expecting earnings of $1.04 a share on revenue of $3.78 billion. Gross margins are expected to be 43 percent. For the fourth quarter, RIM is currently expected to report earnings of $1.19 a share on revenue of $4.24 billion.
But under the cover there are some real worries. Among them:
- Average selling prices. RIM has been using “buy one, get one free” promotions in recent quarters. The aggressive campaign may keep share, but it’s a worry to analysts. Piper Jaffray analyst T. Michael Walkley notes that BlackBerry’s lower priced phones are the hot sellers. As a result, RIM’s profit margins may get pinched in the February quarter.
- What can RIM do to keep up or leapfrog Apple’s iPhone and the Android handset army, which is dominating carrier roadmaps in 2010?
- Can RIM defend the enterprise? Job losses, weak IT spending and iPhone encroachment are all problem areas.
- What’s the software plan? RIM’s operating system is looking dated. Sure, RIM has acquired Torch Mobile to improve its Web browser, but the company is trailing on the mobile app front. Indeed, analysts say Motorola’s Droid is gaining share on RIM in Verizon accounts.
Caris & Co. analyst Robert Cihra lays out the landscape.
iPhone/Android competition is real and RIMM needs to keep pushing its software development further/faster beyond core messaging…Our own fieldwork shows iPhone starting to have a real impact in enterprise IT accounts and especially their “future plans,” with PUSH from Apple sales but also now carriers’ own enterprise/biz accounts teams and third-party software/integrators, catalyzed by simultaneous PULL coming from customers.
And Cihra is relatively upbeat about RIM’s prospects. He expects IT spending to improve, a strong refresh cycle and international sales as big opportunities for RIM. In addition, BlackBerries still represent just 3 percent of mobile phones so could see upside.
Other analysts see a lot of challenges ahead. The biggest issue: RIM is in an increasingly competitive space and will see market share and pricing problems ahead. Without innovation, RIM could wind up playing a lot of defense and become a commodity player.
Phil Cusick, an analyst at Macquarie Research, said in a research note:
In 2010 we expect RIM’s developed market consumer smartphone share to see continued challenges from players like Motorola, Palm and Apple, as iPhone exclusivity fades, and to hear increasingly about Nokia’s consumer email solution pressuring RIM’s growth in Europe and Asia.
The elephant on RIM’s conference call will be competition and how the company plans to address it.
Related:
- With 3G, quad-band and Wi-Fi calling, RIM BlackBerry Bold 9700 is best fixed QWERTY smartphone to date
- Analyst: Big on Motorola, Android; no love for RIM, Palm
- With BlackBerry Storm2, RIM wins the battle but loses the smartphone war [review]
- The Android army: Verizon Wireless, Google ink collaboration pact; Google Voice support on tap
- Podcast: Is $99 the new $199 for smartphones?
- Revisiting RIM: Are the enterprise storm clouds brewing?
- RIM signals price war potential; Fallout could be substantial
November 23rd, 2009
Admob: Droid and Android army make big browsing splash
It didn’t take long for Motorola’s Droid to make a big splash in the browsing statistics, according to mobile ad firm AdMob.
In AdMob’s latest metric report (blog, statement, PDF), Android phones had 20 percent of smartphone traffic, up 7 percent from six months before. And Motorola’s Droid and CLIQ have had a quick impact on the browsing share.
AdMob, which has been acquired by Google, looked at the devices that comprise the market share of the mobile players. For instance, here’s a look at the Android breakdown:
Simply put, Motorola’s new handsets really moved the needle within Android market share stats.
RIM’s breakdown was also interesting. The big takeaway: The Curve rules the roost and the Storm is a so-so performer. Browsing is infinitely better on the Storm than Curve so it’s a little surprising it doesn’t have more share.
Overall, not a lot has changed in the smartphone standings. Apple’s iPhone platform is dominant. However, Android and its army of devices are likely to make a push in the months to come.
October 28th, 2009
RIM's second Storm: Not enough to erase memories of the first
I lug around the Research in Motion’s BlackBerry Storm and find it to be a device that can be useful but generally annoys you a little bit every day. The touch screen doesn’t quite work right, the browser is iffy and there are numerous little flaws that bum you out over time. So after checking out a review copy of the Storm 2 I really only had one question: Could the Storm 2 erase the taste the first Storm left in my mouth?
The short answer: No.
I’ve made my decision about the Storm before I took Storm 2 for a spin. There’s little chance that I’ll get a BlackBerry the next go round with Verizon Wireless. I’m all about the latest iteration of the Droid when it comes around. But the second version of the Storm, which is available today, was at least worth a look and I was open to going another round. If RIM hit a home run maybe I’d forget the first flawed version.
Andrew Nusca: With BlackBerry Storm2, RIM wins the battle but loses the smartphone war [review]
Rest assured, RIM improved a lot with the Storm 2. The display is nicer, the virtual keyboard works well and overall it feels snappier (review).
What I liked:
- The keyboard was much better.
- The Wi-Fi option was nice to have.
- Overall, the OS seemed more tuned.
Simply put, if I was new to the Storm the latest incarnation would be a worthwhile device. But here’s the rub with smartphones: You don’t often get a second chance. If the first rollout is flawed you never quite get over the experience. Add it up and the Storm 2 not only faces competition from the iPhone but the bevy of Android devices lining up at Verizon Wireless.
Also: RIM BlackBerry Storm2 coming to Verizon on Oct. 28; $179
Verizon preps fourth quarter device barrage; Droid will ’stimulate demand’
October 15th, 2009
First look: BlackBerry Storm 2 review
CNET’s Bonnie Cha does the walkthrough of Research in Motion’s BlackBerry Storm 2, which aims to fix the flaws of the first version.
Here’s the video:
October 8th, 2009
Apple leads smartphone customer satisfaction
Apple is the top smartphone dog in both consumer and business satisfaction, according to J.D. Power and Associates 2009 rankings.
J.D. Power released a bevy of surveys gauging the satisfaction with traditional mobile phones and smartphones (statement). The surveys ranked vendors by whether consumers are using the phones for business or personal use. Apple led both categories.
Among smartphones used for personal reasons, Apple led the pack followed by LG and Research in Motion’s BlackBerry. Key factors for personal use include ease of use, operating system, features and designs. Here’s the breakdown:
October 6th, 2009
Verizon-Google changes mobile landscape; Customers have real options again
I had to take a moment to pause and think about this new Google-Verizon chumminess and their common, yet unspoken, quest to go after the Apple-AT&T relationship with the iPhone that includes today’s partnership news and a new ad campaign.
For those who don’t know, I am a Verizon Wireless customer who is currently using a loaner Blackberry Tour. I am also one of the Apple faithful who would rather be using an iPhone but refuses to pay more than $100 a month for the hit-or-miss AT&T service. (But that’s a rant you can read in a previous post.)
What really clouds the issue for me is that I also like Google’s Android mobile OS. I have been carrying around an HTC MyTouch device running pre-paid T-Mobile service for a couple of months now. The service is OK, at best, but the user experience with the software - and the deep integration of Google’s services such as mail, maps and search - is second only to the iPhone (Blackberry has a long way to go, in my opinion).
Yes, I’m a bit torn now - but here’s the good news. I’m torn because I suddenly feel like I have options. Real options.
As my colleague Larry Dignan pointed out in his own post this morning, there has been a trade-off between cutting-edge devices and reliability as a Verizon Wireless customer. (Sorry, the Blackberry Storm didn’t make the cut as a cutting-edge device for me.) Like him, I also stuck by Verizon Wireless and its reliable service over the flashiest new devices. And, in all honesty, I’ve just been holding my breath, waiting for Verizon and Apple to bust out with an iPhone announcement the second that the AT&T-Apple exclusivity deal ends, rumored to be sometime next year.
October 5th, 2009
Vonage launches mobile apps; Focuses on international calls
Vonage on Monday launched applications for the iPhone, BlackBerry and iPod touch.
Vonage Mobile, an application designed to provide low international rates over Wi-Fi and cellular networks, is focused on international calls. The aim: Get mobile callers to sign up for Vonage for international calls. From there, Vonage is hoping you’ll be more receptive to home service from the company.
According to the company (Techmeme, statement), users of the mobile app won’t need a new number. In the fourth quarter Vonage said it will add its World plan available to its mobile app. Under that plan, you get unlimited international calls for a flat fee.
While the Vonage Mobile app is notable—some have pointed out that Vonage was approved while Apple takes its time to approve Google Voice—it has limited scope.
For instance, I’m a Vonage customer at home and Vonage Mobile would be more useful to me if I could get calls from my home office line and manage my account from my mobile device. International calls are a nice start, but Vonage Mobile could be more.
September 30th, 2009
Revisiting RIM: Are the enterprise storm clouds brewing?
Research in Motion’s gravy train—the enterprise—may be slowing as companies cut back corporate data plans and rethink what employees should get BlackBerry devices.
Anecdotal accounts are filtering into us that many employees, particularly the IT variety, are losing their BlackBerry phones. Why? Companies can’t justify paying for employee data plans. And the BlackBerry Enterprise Service just isn’t adding up for firms looking to cut costs.
Simply put, anyone not in the managerial chain that has a BlackBerry may be at risk to lose it. These phones are being replaced with corporate voice only phones, if at all.
These anecdotal reports put some additional color to RIM’s most recent financial results, which indicated that the company is increasingly reliant on consumers for growth.
Loading ...Atlantic Equities analyst James Cordwell notes that RIM’s position in the enterprise market may be more worrisome than falling average selling prices and fickle consumers:
Enterprise net adds remain subdued – cyclical or structural? Overall net adds of 3.8m fell short of our 4.0m estimate, partly due to an ongoing rundown in channel inventory but also because enterprise net adds of ~0.7m remained at the lower level seen in Q1 (vs over 1m average in FY09). Whilst some improvement is to be expected in CY10 as the economy improves, this does raise questions as to the level of further growth available within the enterprise segment.
Goldman Sachs analyst Simona Jankowski also highlights enterprise concerns:
RIM’s enterprise subscriber growth will likely be lower, given the increasingly common use by small-and-medium enterprises of the BIS (i.e. consumer) rather than BES (i.e. enterprise) BlackBerry service, which could suggest we were previously overestimating RIM’s BES growth potential.
It’s too early to stick a fork in RIM’s enterprise business (the economy could roar back along with enterprise data plans for employees), but there are some serious questions to ponder.
- Are corporations moving to a bring-your-own-smartphone model instead of company-issued phones? Exchange support, the big sell to the enterprise, seems to be available in many phones these days.
- Is there an opening for Google? If the costs are the BlackBerry Enterprise Service prohibitive enough Android could be an option—especially if workers bring their own phones to work.
- Will the iPhone ding RIM where it hurts—the enterprise? In the consumer market it’s Apple vs. RIM. But if companies refuse to pay the freight on enterprise data plans it’s likely that they will wind up supporting the iPhone in bulk.
Also see: RIM signals price war potential; Fallout could be substantial
September 25th, 2009
RIM signals price war potential; Fallout could be substantial
Research in Motion’s second quarter sounded alarm bells and may have signaled a smartphone price war, according to analysts. The company’s contention that it would target a ‘more mainstream’ market was viewed as a sign that average selling prices would fall for multiple vendors.
The scenario for the fourth quarter outlook for smartphone makers is clear: The vendor that is able to hold pricing wins. The problem: Buzz and mindshare may be highly overrated when it comes to maintaining smartphone prices. The good news: What’s bad for vendors may be good for you—especially if $99 becomes the new $199 for smartphones.
RIM delivered a dud of a quarter where fiscal second quarter fell short of Wall Street estimates as did the third quarter outlook. As reported, RIM was hammered in afterhours trading and shares are falling further on Friday.
J.P. Morgan analyst Paul Coster highlights the fallout from RIM’s quarter:
September 24th, 2009
RIM's second quarter revenue light as is the outlook
Research in Motion’s second quarter revenue and third quarter outlook fell short of expectations.
RIM reported second quarter earnings of $475.6 million, or 83 cents a share, down from $643 million, or $1.12 a share, a year ago (statement). Adjusted net income for the second quarter was $1.03 a share reflecting a tax rate of 28.5 percent and excluding a charge of $112.8 million to settle a patent litigation with Visto. Wall Street was expecting earnings of a $1 a share. RIM detailed the charges related to Visto in July.
However, sales were the big issue for RIM. The company said second quarter revenue was $3.53 billion, up 3 percent from a year ago. The rub: Wall Street was expecting sales of $3.63 billion. RIM did ship 3.8 million devices in the second quarter.
The outlook was also disappointing. For the fiscal third quarter ending Nov. 28, RIM said it expects revenue to be between $3.6 billion and $3.85 billion. Wall Street had been expecting sales projections of $3.95 billion. Meanwhile, third quarter earnings per share were projected to be between $1 a share and $1.08 a share. Wall Street had been looking for $1.08 a share. RIM also said it expects to add between 4 million and 4.3 million net subscribers in the third quarter.
On a conference call, Balsillie said RIM is showing some growth in international enterprise sales and consumer expansion in the U.S. RIM said it will ship 9.2 million to 9.9 million devices in the third quarter. Average selling prices will be $320 in the third quarter.
Here’s how RIM lined up with Cowen & Co. and consensus estimates with problem areas highlighted:
The reaction was predictable as shares were whacked in after hours trading. In fact, the more Balsillie talked on the conference call the more RIM shares fell:
Among other items from RIM:
- The company shipped 8.3 million devices.
- It added 3.8 million net BlackBerry subscriber accounts for a total of 32 million.
- 81 percent of RIM’s revenue in the quarter came from devices with 14 percent from service.
- Balsillie said RIM will launch new products and applications with Verizon “in the upcoming months.” He also talked up the success of the BlackBerry Tour.
- And the company ended the quarter with $2.5 billion in cash, equivalents, short and long-term investments.
Jim Balsillie, co-CEO of RIM, was upbeat on the holiday buying season noting that the company had a strong portfolio. However, gross margins have been declining. For the six months ended Aug. 29, RIM’s gross margin was 43.8 percent, down from 50.7 percent a year ago.
September 24th, 2009
Smartphones: Is image really everything?
If you want to conquer the smartphone market there’s a clear recipe to follow. Be smart, add a lot of hip and cool and stir in productivity. Bake in some marketing buzz and you can hold pricing and become a signature smartphone.
That’s the big takeaway from a report from Interpret LLC. The report, highlighted by Engadget and others, has been used as a data point in the revival of Palm. For instance, Palm rose off of its deathbed with the Pre and now is second in mindshare to the iPhone.
But if you’ve noticed Palm’s latest quarter and lumpy outlook you’ll find mindshare isn’t exactly everything. Price points, margins and sheer volume matter. Palm is a player courtesy of the Pre, but it remains to see if it can keep the hits coming. Nevertheless, it’s worth addressing the mindshare issue since it clearly saved Palm, which has been able to raise capital.
If you buy into Interpret’s findings it’s clear that smartphones are increasingly becoming fashion phones. The big question—left unaddressed by the report—is how long a mindshare edge can last. The question is huge when you consider that Palm may be a 2009 story, but there are no guarantees for 2010. Meanwhile, Motorola may be poised to be the mindshare gainer in 2010.
Interpret states in its report:
September 14th, 2009
Sprint lures two from Verizon; new 'unlimited' plan seals deal
If Sprint thinks it can lure customers back by offering an unlimited everything plan for one flat rate, well… it may be on to something. This weekend, I became a Sprint customer again.
Last week, the company announced a new unlimited plan that includes, well, basically everything unlimited - SMS, MMS, 3G data (yup!) and, in a way, even voice. The plan, at $70 for an individual plan or $130 for a two-line family plan, includes unlimited mobile-to-mobile calling to any network - yup, AT&T, Verizon, T-Mobile and others. Landline calls and international calls are the only ones that eat from the monthly allowance of voice minutes. 
A quick history: The Verizon contracts for my wife and teen daughter’s phones are up and they’ve both been hinting that they’d like to do more with their phones - as in mobile web, as in a data plan and a smartphone. I’ve resisted because, under Verizon, the monthly bill takes a pretty steep hike but now we had some options.
My daughter spotted the Sprint flyer in, of all places, the weekly newspaper ads this weekend and started waving it around for me to see. Getting the hint, I first called Verizon to get a run down of my options on plans, promotions and so on. Verizon has good plans - but the deal-breaker is the monthly add-on for data. For a smartphone, it’s $30 extra per line; for mobile web access on a web-capable phone, it’s $20.
The Sprint option was interesting because it included unlimited everything. Te individual plan comes with 700 minutes but the family plan has 1,500 - more than enough, seeing how the pool only gets tapped from landline or international calls. We did some plan comparisons. And many of them were pretty competitive when you added unlimited data to existing voice plans - but that mobile-to-mobile across network lines just kept giving Sprint the edge.
Also see: Palm Pre weekend: Sprint could steal Palm’s moment
In the end, both wife and daughter ended up getting colorful Blackberrys that came with big rebates. Here was the one drawback about the Sprint experience. Neither wife nor daughter were big Blackberry fans. They just didn’t care for the rest of the offerings - not even the new Palm Pre and Palm Pixi.
As for me, I get two monthly bills now, instead of one. But, I also get to drop to a lower-priced plan for the Verizon account because two of the heaviest users of the family are leaving. I crunched some numbers and found that, when all is said and done, I’ll be saving money every month.
Icing on the cake.
Truth be told, the contract for my own account is also expiring and I’m free to move on if I’d like. But, I’m liking the Blackberry Tour I’ve been using (though I have big issues with its battery) and am still hoping that Verizon gets the iPhone and/or an Android device sometime early next year. I’ll hang out for a while and see what develops.
In the meantime, I’m looking forward to watching first-hand how teenagers use smartphones, instead of just reading reports about it.
Previous coverage:
August 26th, 2009
BlackBerry, iPhone dominate list of 10 best-selling U.S. smartphones of Q2
The earnings reports of most of the big public technology companies for Q2 2009 were a lot like “confessionals,” as my colleague Larry Dignan likes to say. Most segments of the tech industry are struggling through lower sales and an uncertain forecast for the rest of 2009.
One of tech’s few bright spots is smartphones. Gartner reported that worldwide mobile phone unit sales were down 6 per cent in Q2 2009 (compared to Q2 2008), but smartphone unit sales were up 27% for the same period.
Meanwhile, IDC reported that the worldwide mobile phone unit sales were down a steeper 10.8% in Q2 compared to Q2 2008. And while IDC also found strength in smartphones, the analyst house noted that competition was fierce and a price war had broken out:
Jason Hiner is the Editor in Chief of TechRepublic, ZDNet's sister site. Read his blog Tech Sanity Check at hiner.techrepublic.com. You can also find him on Twitter, LinkedIn, and JasonHiner.com.
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