In last week’s discussion piece we asked the question “Should RIM Have Skipped BlackBerry 7 And Released New Devices Running BlackBerry 6 Sooner?“ Skipping BlackBerry 7 all together is still being debated, but, based on RIM’s Q1 Fiscal 2012 earnings call, there is no question that RIM would have been better off if they had released new hardware running BlackBerry 6 earlier in the year.
Because of delays in BlackBerry 7, RIM will miss the back-to-school shopping season meaning that the company will see their market share decline even more rapidly than it already is. RIM says the hold up in BlackBerry 7 is carrier acceptance. BlackBerry 6, however, already has carrier acceptance and RIM would have sold a heck of a lot more handsets if they had only released them running BlackBerry 6.
Consumers care about apps…
Unfortunately for RIM, the company is under the illusion that consumers actually care about BlackBerry 7. Most consumer BlackBerry users have never heard of BlackBerry 7 nor could they tell you what the name of the OS running on their current device is. Consumers care about apps. Consumers care about all the cool stuff their non-BlackBerry using friends are able to download and install on their devices. Consumers care about the lack of cool stuff that they can download and install on their devices.
The most popular mobile game in the world, Angry Birds, is being downloaded more than 1 million times per day, but, not by a single BlackBerry user nor will the overwhelming majority of BlackBerry users ever be able to download Angy Birds or hundreds of thousands of other applications like it. Consumers care about apps, but, unfortunately RIM thinks that smartphones are still all about BBM and email.
BlackBerry 7 may be a dog that won’t hunt…
The more I think about it the more I believe that RIM should have taken a page out of Microsoft’s PlayBook when it comes BlackBerry operating systems beyond BlackBerry 6. When RIM decided that the future for the BlackBerry is one where devices run on QNX, the company should have put everything into getting QNX on handsets as quickly as possible and said BlackBerry 6 is it for the BlackBerry OS like MS said Windows Mobile 6.5 was it for the old Microsoft mobile OS. Because they didn’t and the fact that RIM is dealing with carrier acceptance issues, BlackBerry 7 may be a dog that won’t hunt.
Not that anyone really believes RIM when it comes to timelines the company is saying that BlackBerry handsets running QNX will be out in early 2012. This poses two huge issues for RIM seeing how they won’t even release most BlackBerry 7 devices until the Fall and Winter of 2011. A lot of folks are just going to wait it out it out and skip BlackBerry 7, and, it is going to be very difficult for RIM to convince developers to develop apps specifically for BlackBerry 7. BlackBerry 7 could potentially just extend the types of issue RIM is experiencing with BlackBerry 6.
Research in Motion has a lot of problems they need to resolve. RIM’s stock (RIMM) is tanking as I type this post and many analysts are saying that delays in BlackBerry 7 and in the touch Bold 9900/9930 could be the final nail in the coffin. I still think that RIM sells way too many devices overseas to go that far, but, RIM could could be relegated to Nokia status of few years ago here in the U.S.