RIM banks on Blackberry 10 to win fans
SINGAPORE — The last two years have been challenging for Research in Motion (RIM), makers of the BlackBerry phone. A couple of global network disruptions, the lack of enthusiasm for its BlackBerry Playbook tablet as well as multiple delays to its upcoming BlackBerry 10 smartphone have seen it fall from its position as a strong player in the market to something of an also-ran.
According to a recent report in The New York Times, RIM has only 1.6 per cent of the American smartphone market, down from 8.5 per cent a year ago.
As a result, the launch of the new device at the end of next month has taken on greater significance. Some analysts suggest it is essential for RIM that the Blackberry 10 provides a catalyst to revive the company’s fortunes.
Mr Rory O’Neill, Vice-President of Product Marketing at RIM, who is in Singapore to attend meetings, is confident that the new device is innovative enough to win back favour among former fans as well as new buyers.
“We’ve taken the smartphone OS and totally revolutionised it so it’s not just a grid of apps. It’s a much more intuitive, adaptive, smoother, faster experience for people — be they entrepreneurs, business leaders, or even teenagers — who need to get things done ... People in our target market will find the phone a really revolutionary, innovative experience.”
Nevertheless, RIM has to deal with the reality that it has seen its market share decline in key countries such as Spain, France and Brazil. Unlike Nokia, HTC and LG, RIM is unusually dependent on these three countries through its cheap, older Curve models.
Market share in Spain slumped from 24 per cent to 3 per cent in a year; dipped from 9 per cent to 3 per cent in Brazil; and fell 16 per cent to 7 per cent in France.
Numbers like these have seen analysts focus on the Blackberry 10 as a crucial product for RIM.
Director of Strategy at brand consultancy Landor Associates Simon Bell said: “Blackberry is still a powerful brand but its failure to keep up with the market has left it trailing behind the competition.
“If the resurgence is to start soon then RIM needs to act on the issues that have been eating away at them and redefine the brand.”
Still, Mr O’Neill is upbeat about the company’s position. “We have 80 million customers worldwide, which is a significant customer base, operating in 143 countries worldwide. And we’ve US$2.3 billion (S$2.8 billion) in cash.”
“So while it’s important for us to launch BlackBerry 10, we’re focused on delivering it to our customers and to new customers. And if we do that right, the financials will take care of themselves,” added Mr O’Neill.