September 24th, 2011 
Jay IGN is asking the question ‘Will RIM still exist in four years?’. And I must say that this really got me thinking.
RIM started a true revolution many years ago, when they first introduced the BlackBerry phone. BlackBerries quickly gathered a loyal following, many of which still exist to this very day. But the question is… will a small, hardcore fan base be enough to sustain RIM’s revenue enough that it can survive?
Way back in 1999, RIM introduced the very first BlackBerry phone. Back in those days, you didn’t call phones like these ‘smartphones’. You didn’t even call them phones at all. You called them ‘PDA’.
Back in those days, the BlackBerry was nothing short of revolutionary. Never before had the world seen such a gorgeous display combined with a handy dandy keyboard for an interface.
Once, RIM held a significant market share. And at 29% (as of 2011), they still do. But it used to be much higher. And their market share is rapidly dwindling.
How is it possible that such an innovative company loses its edge and stands by as its market share is eaten away by the mighty Droid (and others)?
In my opinion there are a number of things that RIM is doing wrong.
1. Failing to let go of old ideas.
When the BlackBerry was first introduced, it was revolutionary. But these days, its design looks a little… how do you say… obsolete! Have you ever compared the touch & feel of a BlackBerry with the touch & feel of, say, a HTC Sensation? We all know which one has the best feel while you are holding it in your hand.
And those physical keyboards… they were very useful at one time, but now they’re just too small. There are better smartphones out there with way bigger physical keyboards that are much easier to use. They’re slide outs, and they don’t take up valuable display size either!
2. Failing to innovate.
What has RIM been doing with all its revenue? Did they blow it all on advertisements? Because they should’ve invested it back in creating better technology. Better phones make for better word of mouth, which is the best kind of advertising you can get!
I’m just going to state the obvious here: BlackBerry phones have small displays in comparison to today’s flagship smartphones such as the Samsung Galaxy S II. At the time of writing, 4.3” is considered to be the standard. Not many phones have displays smaller than 4” anymore. But RIM is still largely stuck in the 3” era. BlackBerries with bigger displays are coming. But I fear it is too little, too late.
HTC has invested its money in a cooperating with Dr. Dré to get its hands on Beats Audio technology. This will take the HTC Sensation XE audio to the next level. Samsung has invested heavily in display technology, allowing them to build the 5.3” display Galaxy Note smartphone.
What exactly has RIM done to innovate? People these days are very tech savvy and they have come to expect novelty. This day and age, a smartphone manufacturer has got to innovate in order to grab its audience by the balls and turn them into obsessive compulsive buyers.
Apple does a great job at this. Apple understands how to market to the crowd and position itself as a religious icon in the eyes of its fan base. But Apple isn’t riding on its fan base loyalty alone. Apple innovates. If they didn’t, they would quickly go the way of RIM (extinct), which apparently expects its fan base to stay loyal ‘just like that’.
3. Failing to keep up with the competition.
The world of smartphones has changed a lot but RIM never adapted. The smartphone has gotten a bigger brother called the tablet. The tablet market grew insanely fast because everybody had to have one. The competition in the tablet market is killing. But every smartphone manufacturer wants a slice of the action. RIM has tried releasing their own tablet but it bombed miserably.
RIM is in heavy competition and seeing its revenue, as well as its stock value, rapidly dwindle. It was really important that they managed to get a strong foot hold in the tablet market. But the PlayBook turned out to be a limited, buggy piece of you-know-what. Only 200,000 of them were sold. It may seem like much, but the number pales in comparison to the millions of Android tablets and iPads that are being sold.
Add to that the fact that almost nobody knew about the damn thing because of the lack of a decent marketing campaign. It’s easy to see why nobody was interested in buying it or developing for it. Is it any wonder that the PlayBook turned out to be one of the biggest failures in the tablet market?
The Near Future Of RIM
Unless RIM starts getting its sh#t together, the BlackBerry is surely done for. Instead of clinging to an obsolete design, RIM needs to have the guts to innovate. RIM needs to take a look at the competition and get a clue. RIM needs to reinvest some of that revenue from days gone past back into research & development. Do they seriously expect to stay afloat in a market where innovation has become the standard?
RIM won’t make it until the end of the decade unless they get with the program, stat!
Hat tip to IGN.
Posted in 
Tags: 
