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Blackberry Trouble

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Submitted By strategie
Words 632
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Sophia SINAN

“ RIM and its troubles
BlackBerry blues
Research In Motion can ill afford embarrassing service interruptions
CAN’T live with them; can’t live without them. Users of BlackBerry smartphones often curse the flashing red light telling them that another e-mail demands attention. Yet they curse its absence more. October 12th was the third day running of service failures, starting in Europe, the Middle East and Africa and then spreading to Asia and the Americas. Anger found work for idle thumbs: many tweeted their rage at Research In Motion (RIM), the Canadian company that makes BlackBerrys—presumably from other devices.
For RIM, the outages could scarcely have been worse timed. The company has had a bad year. In the quarter ending in August its revenues were 10% lower than a year before, at $4.2 billion. Profits, at $329m, were down by more than half. According to Gartner, a research and consulting firm, in the second (calendar) quarter RIM’s share of the smartphone market dropped to 12%, from 19% a year earlier. BlackBerrys are still to many people’s taste. Corporate road-warriors swear by them as well as at them. Wielders of clumsy middle-aged thumbs like a QWERTY keyboard of buttons (though touch screens are also on offer). Information-technology departments, particularly in companies that put a special premium on security, love them too: life is fairly simple with a PC on every desk and a BlackBerry in every hand. And many youngsters, especially in Britain, have taken to BlackBerry Messenger, an instant-messaging service.
But the smartphone business is changing, and not in RIM’s favour. Many users prefer their own devices to company-issue BlackBerrys, and firms are increasingly allowing workers to use them. Apple’s iPhone (the latest version of which goes on sale from October 14th) and the many Android-based competitors boast many more apps, and are simply trendier.
Worse, RIM has been slow to get new products to market, though phones with a new operating system, OS7, are now appearing. It has also made a lacklustre start in tablets, shipping 500,000 of its PlayBooks in the first quarter of its financial year (to May) but only 200,000 in the second. Gartner calls its tablet operating system, QNX, “a promising platform”, and thinks RIM may sell 3m PlayBooks this year. But that looks puny next to forecast sales of more than 46m Apple iPads and 11m Android tablets.
Investors are as impatient as users: RIM’s share price has fallen by more than 60% since February. Whatever wonders its co-chiefs, Jim Balsillie and Mike Lazaridis, have worked in the past, having two leaders now looks as bad as none. Jaguar Financial, a Canadian investment bank, smells complacency. It wants a change at the top and in direction, perhaps to break up RIM into a network company, a device-maker and a holder of patents. It claims the support of 8% of RIM’s shareholders.
Bosses and shareholders at HP, Nokia, and Yahoo! have already found that, in the tech world, change can be disarmingly sudden. Now it is RIM’s turn to suffer a dramatic loss of power—in more ways than one.” The Economist - Oct 15th 2011

Blackberry used to be the king of smartphones. Then the first generation iphone came and took away some of blackberries users. This did not put blackberry out of the fight but it certainly damaged it. The problem is Blackberry has not developed that much since their original devices. They need to innovate some more. To many frustrated people with there blackberries. Android and iphone are just destroying in the smartphone market.
One of their biggest competitors being Apple have constructed their products much simpler than Blackberry. That should be their first step while starting to transition to smart phones.

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