Thursday, June 24, 2010

The New RIM Takes On Apple; Apple Versus RIM, Part II

As RIMM will report results today, the Ottawa Citizen had a great article today on the Apple vs Rim war:

(please click to enlarge)

The question for RIMM shareholders is when will RIM's long-promised iPhone killer finally hit the market.

Robust earnings growth and sales of more than 11 million devices are expected, along with further declines in average selling prices.
"RIM's share of the more lucrative North American market, meanwhile, is expected to have eroded further as the iPhone and a slew of smart- phones that use Google's Android operating system eat into the BlackBerry's market share".

"That's where the anticipated BlackBerry 9800 comes in. The touchscreen device is said to have a full slide-out keyboard, along with a new operating system and revamped web browser.
Analysts say the new device, expected to be dubbed the BlackBerry Torch, could revive RIM's sagging fortunes in North America and help it regain some of its faded glory".
Droid X

Motorola launched the Droid X phone, which lets users shoot video, watch movies and browse the Web. With an 8 MP camera (the iPhone 4 has 5MP), the Droid X's display is also larger than the 3.5-inch screen of the iPhone 4 and will also will be able to play video on sites that use Adobe's Flash. Remember that Apple has this convoluted and restrictive application licensing systems. Steve Jobs banned Flash from Apple's iPhone and iPad mobile devices and said it as slow, buggy and power hungry. He apparently also restricts and bans some Google apps. Not the way to go Mr. Jobs.

Continues the Citizen:
"While Apple's shares have surged more than 90 per cent over the last 12 months, RIM's stock has fallen almost 30 per cent over the same period, as the once-iconic BlackBerry has ceded market share to its snazzier rivals in North America.

RIM's overseas sales have grown steadily, but much of the gains have come from sales of low-end devices that have weighed on the company's average selling price. RIM is also facing more competition within its once-secure enterprise segment, as some companies are allowing employees to swap BlackBerry devices for other smart phones.

RIM's critics are quick to note the BlackBerry's clunky web browser, its dearth of in-built memory, its humdrum app store and the lack of a compelling touchscreen device.
But many BlackBerry aficionados and RIM investors are hoping the Waterloo, Ont.-based company will address most of these concerns with a launch of the new device and operating system this summer".

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Ann said...

RIM is not known for its browser/software capabilities. They are slow to change & indecisive. Innovation? Their email is licensed from another.It is clear from their snail pace hiring process, to their app store, & launch of their touch screen phone last year. Apple moves fast, they are marketing pros & they know how to evoke the emotions & momentum. They are steadily penetrating the enterprise space & the younger passionate Apple, or Droid consumers will grow up to be avid prosumers. RIM has steadily ignored and undervalued the power of the consumer and how it infiltrates the business sector. SUN and Palm were slow to innovate- look where they are now. Apple understands marketing & the street is looking for. Their ear is to pavement.

The Shocked Investor said...

Ann, those are very good points.=, perhaps with the exception of hiring as RIMM has too many empoyees already. However, RIM still targets a different market and they are the best at it and nobody has dethroned them.

Yes, AAPL is popular and is all the craze at the moment, but in my opinion it is a dispensable and overpriced product. That makes it a very dangerous stock. I am not convinced by what the AAPL fans promote. Great marketing machine, yes.

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