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Category: RIM
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:
August 24th, 2009
RIM acquires Torch Mobile: Gets serious about browsers
Research in Motion appears to be serious about improving its mobile browser. Now, RIM is putting and undisclosed amount of money behind the effort via the acquisition of mobile browser developer Torch Mobile.
Torch Mobile has been a contributor to the WebKit project, which is the technology foundation for Apple’s Safari browser on the iPhone. WebKit is also the base for browsers on the Palm Pre and Android devices. In a statement on its site, Torch Mobile said:
Torch Mobile is excited to announce that our company has been acquired by Research In Motion (RIM), one of the most renowned mobile technology companies in the world. Our team of developers will join RIM’s global organization and will now be focused on utilizing our WebKit-based mobile browser expertise to contribute to the ongoing enhancement of the BlackBerry platform.
Torch Mobile’s team of highly skilled developers has been actively involved in Open Source development and includes contributors, Commiters and Reviewers of the WebKit project. As part of RIM, these developers will continue to be active participants in the WebKit development community.
Specifically, Torch Mobile makes the Iris browser and RIM’s bet appears to be that it needs to get involved with Webkit. What’s odd here is that Iris is available for Windows Mobile, Windows CE, Qt embedded and Qtopia. There will be some work to bring Iris to the BlackBerry.
Here’s a demo of what RIM just bought:
August 10th, 2009
TechRepublic: U.S. CIOs are starting to warm up to the iPhone
When the Apple iPhone was released in 2007, CIOs and IT departments almost universally rejected it as a device that was not fit for business. Two years later, with the third generation of iPhone hardware now on the market, Microsoft Exchange support available, and an active ecosystem of third party applications, many CIOs are beginning to warm up to the iPhone.
On August 4, TechRepublic polled its group of U.S. IT leaders and asked, “Does your IT department support the iPhone as an approved device?” The jury, made up of the first 12 respondents, had seven IT chiefs who said “no” and five who said “yes.”
August 5th, 2009
A look at the BlackBerry Curve 8520 [video]
Natali Del Conte shows us the new BlackBerry Curve 8520 from the product launch in New York.
August 3rd, 2009
Goldman Sachs: BlackBerry, iPhone own smartphones, but if Apple ever gets an enterprise subsidy...
Goldman Sachs is increasing its smartphone forecast based on a consumer survey that reveals Research in Motion and Apple are the runaway winners in the field, but for vastly different reasons. RIM enjoys enterprise sponsorship, but iPhone’s stealth business use campaign is working.
The survey in many respects confirms what anyone on an East Coast to West Coast knows. There are BlackBerry people and iPhone people and not much in between.
Generally speaking, Goldman Sach’s survey of 300 high-end smartphone consumers found that iPhone garners more loyalty and satisfaction, but not enough to take a lot of market share from RIM. There’s interest in Palm and Motorola is a no-show thus far.
The other tea leaves in the survey indicate that smartphone loyalty is higher than carriers. However, network quality is a big concern.
Add it up and Goldman Sachs sees smartphone units growing 12 percent in 2010, 22 percent in 2011 and 29 percent in 2012.
Among the key findings:
July 22nd, 2009
Nortel's carcass is in high demand
Who would have thought Nortel would be more popular in bankruptcy than as a going concern? A lot of companies want Nortel’s assets, which have the potential to raise a ruckus in the tech market.
Emerging signs of Nortel’s popularity:
Avaya plans to pay $475 million for Nortel’s enterprise solutions business. Under a deal announced Monday Avaya entered an agreement to buy Nortel’s enterprise unit, which includes enterprise telephony, unified communications and data networking products. With the move Avaya could be a bigger threat to Cisco.
The Avaya deal comes about a month after Nortel entered an agreement to sell its CDMA and Long Term Evolution (LTE) access business to Nokia Siemens Networks. That deal, worth $650 million, would transfer at least 2,500 Nortel workers to Nokia Siemens. Under the deal, Nokia Siemens entered a “stalking horse” arrangement where Nortel can complete the sale in bankruptcy unless a better deal comes along.
And speaking of better deals. Research in Motion freaked out because it was prevented from making an offer for Nortel’s wireless business, which will officially be auctioned July 24. Nortel is selling its CDMA and Long Term Evolution (LTE) access business.
In a statement, RIM said it was told it qualified as a bidder only if it promised not to bid for other Nortel assets for a year. RIM said its bid would have kept the wireless business in Canada—a condition of the bankruptcy proceedings. RIM said:
Based on its preliminary review, RIM would be prepared to pay in the range of US $1.1 billion, subject to due diligence and the entering into of appropriate ancillary agreements, for the CDMA and Long Term Evolution Access businesses and certain other Nortel assets. RIM believes that such an offer would result in an extremely attractive price for Nortel creditors and value substantially in excess of the stalking horse bid made by Nokia Siemens Networks.
Simply put, Nortel may disappear, but its assets will continue to make noise going forward.
July 20th, 2009
Is the Tour now the best BlackBerry on the market? [video]
The new BlackBerry Tour was released by Verizon Wireless on July 12 (it’s also coming to Sprint later this summer). I’ve been testing the Tour this week and did a quick video clip to share my first thoughts. This includes a rundown of the pros and cons from a business perspective and where the new device fits in the smartphone market.
July 16th, 2009
RIM, Visto settle patent suit
Research and Motion and Visto said Thursday that they have settled all outstanding patent lawsuits for $267.5 million.
Under the agreement (statement), RIM gets a perpetual license on all Visto patents and intellectual property. Visto gets a one-time payment of $267.5 million.
The deal is expected to close July 20. RIM said it will be a charge against its fiscal second quarter earnings. Visto is the parent company of Good Technology.
July 8th, 2009
Sprint beats Verizon, AT&T in nationwide 3G reliability tests
Just about a month ago, I stepped into a Sprint store to learn more about the Palm Pre and walked out ready to switch from Verizon to Sprint, thanks to a knowledgeable clerk who shifted the conversation from devices to plans. It turns out that Sprint’s plans are so competitively priced that I could find myself saving about $100 a month on my existing five-phone family plan.
I know I’d never consider switching to AT&T, given the poor experience I had earlier this year with an iPhone I bought and returned. But I didn’t know enough about the reliability of the Sprint network to make an educated decision about a switch to Sprint
But a news release from Sprint this afternoon has given me the information I need. According to 3G reliability tests conducted by PC World, Sprint beat both AT&T and Verizon in 13 major markets, including Silicon Valley. From the release:
The PC World tests took place in March and April this year in 13 major markets across the country, including Boston, Baltimore, New York, Orlando, Denver, Chicago, San Francisco, New Orleans, Phoenix, Seattle, Portland, San Diego and San Jose. In each location, testers measured download speed, upload speed and reliability. In every market, Sprint bested AT&T for reliability. And, overall, Sprint proved more reliable over Verizon with a strong connection 90.5 percent of the time, according to the results. In Boston, Denver and Seattle, Sprint earned perfect scores – 100 percent reliable in connection tests.
Sprint’s Now Network is not only the most reliable according to the PC World 3G tests, it also was applauded for its speed. In most markets, Sprint was competitive with Verizon and AT&T on download speed and was notably faster with better reliability compared with both competitors in the major West Coast cities of Seattle, San Francisco, Portland and San Diego.
Sprint has gone through some rough times in recent years, falling off the radar a bit as both Verizon and AT&T have launched high-end devices that received a lot of publicity, notably the Blackberry Storm and the iPhone.
Palm made a big splash when it announced its new OS and the Pre smartphone at the Consumer Electronics Show in January. For me, it raised my awareness of Sprint and the service plans that it offers. Maybe it’s time to give Sprint one of those 30-day cancel-if-you-don’t-like-it tryouts.
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
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