I was just reading a post over in Seeking Alpha by Carl Howe about how the iPhone will sour RIM’s consumer BlackBerry results, and, although I disagree with many of Carl’s points, it is a very good post.
I don’t think RIM can articulate why consumers should buy their phones And when faced with a choice between Apple’s iPhone and RIM’s Blackberry, consumers will increasingly choose Apple, not RIM
Carl came up with four reasons why he feels this way:
- RIM sold only 2.5 times as many phones as Apple, a company that had never sold a phone before.
- RIM sold through 325 carriers, Apple through one.
- RIM has overestimated its ability to connect with consumers.
- RIM has spread itself too thin.
He goes on to explain in detail why each of these points will put a damper on RIM’s run at the consumer market, however, I believe that one of his Carl’s points and one of my own, tell a bit of a different story.
First lets go to point number 2.
RIM sold through 325 carriers, Apple through one.
Carl sees this as a minus, however, I see it as a huge, huge plus for RIM. Of the 1.25 million iPhones sold thus far, I would gather that 3/4 of them went to the fanboys that would have bought the device regardless of the network.
The average consumer, on the other hand, isn’t going to be so quick to switch carriers especially when they may have family plans on other carriers and would have to pay hefty EFTs to switch to AT&T on top have having to pay full price for iPhone, as AT&T doesn’t subsidize the cost at all.
The cost of the iPhone bring us to my point:
The iPhone, even after a $200 price cut, is still really expensive.At worst, the up front cost of a BlackBerry will be half that of the iPhone. Additionally, you don’t have to switch to AT&T to get one unless you want to so you don’t have to worry about EFTs.
At best, you can get a BlackBerry online through a third party like Amazon for practically free. Heck we’ve seen cash back for BlackBerry Pearls.
There is no doubt that the iPhone has changed the US mobile industry forever and Apple will make money hand over first with it, however, until AT&T subsidizes the cost and Apple opens the iPhone up to more carriers, RIM has great opportunity in the consumer market if they are smart about things.
I truly think that blackberrys and iphones should not be compared. Yes, blackberrys have advantages over iphones, and iphones have advantages over blackberrys. However, I feel that there are just some people who will end up buying a blackberry and other types of people that just love that iPhone vibe. Maybe it is just me, but I feel like the two are directed at such different kinds of people that how can they reallly be compared? Just throwing in my two cents.
iphone’s strength is its coolness factor and interface.
BB’s strength is its email and business friendliness.
these are markedly different strengths. Obviously everyone who has a bb doesn’t have it for business (me) I just like keping up with my emails. And this market (the consumer market) is the only market that Apple will be a threat in. Apple wont be a business phone, it simply cannot be. Not now anyway. I think thats what gives rim the advantage is that it has a sector of the market that it dominates in. I dont think Apple will ever touch them there. but i never thought so many people would buy ipods when there are so many other mp3 players that are better. what do i know.
I would buy both a Blackberry Pearl and an iPhone. The Pearl is the coolest looking blackberry which is unbeatable as a business phone, has unmatched status in the corporate world and is a very stable platform. The iPhone is an Apple, cool, and again, an Apple. That’s enough reason for me to get both devices. I’d wait till the iPhone reaches HSDPA connectivity though..maybe the 3rd generation.
Kai,
Notice your constantly under estimating and try to talk down on the iPhone, it could be lack of 1st hand knowledge, but why would anyone post BS about a device without knowing the truth about the device? The iPhone does have a interface and many other properties which are industry firsts and is a heck of alot more than a “coolness factor”.
Not quite sure with any authority one can claim the iPhone is not, nor will ever be a threat to the BB. Having both I can tell you without a doubt the iPhone can do everything my BB can do. Does it have the BB server pushing email to it? NO but the iPhone sure seems to be able to keep up with auto pull mail, and thats the only thing that some might say is a positive for the BB. I on the over hand think the BB servers limit the stability of the BB and cause mass outages which don’t need to be. The iPhone can and is a “business” phone. The advantage the BB has is it’s a proven, known quantity for what it does, and rarely has downtime. The iPhone is the new smartphone on the block it’s got the technology and stablity to blow away anything else out there by at least a generation, and quickly thru sales is gaining the market. The BB Pearl was and in some ways still is very much a state of the art smartphone, but it’s foolish to not admit the iPhone has changed the entire industry, showing up the top tier manufactures current devices. Just like its foolish to think the BB is an untouchable business phone and the iPhone can’t meet or exceed needs and expectations of “business” smartphone. The iPhone can and does, the bar is alot higher the question is how will RIM reach that bar? or does RIM just regress back to being a email and phone without media capability’s. It’s gonna cost RIM a whole bunch to try to run with Apple’s industry leading smartphone technology, and remember we’re talking about the iPhone being a first generation product and Apple behind it. Doubters beware.
Due to the iPhone not being subsidized I am going with a free (after rebate) Curve. I have played with a friend’s iphone and it certainly is cool but not for the price you have to pay. In 6 months if the iPhone has a 3g variant I might consider it but in the meantime RIM has 6 months to convince me not to switch.
Robb is right: A Consumer BlackBerry Killer The iPhone Is Not…
This post is meant to be useful for someone who is confused in the valley between the Blackberry and the iphone. I have barely touched an iphone (see below), but I have enough information to know that a BB is the way to go.
Well, I’ve heretofore just read about the iphone and seen pics on the internet. Yesterday, curiosity got the cat’s tail; I went to an AT&T store and finally experienced the iphone. How couldn’t I, since “hellno” has been quite the advocate of the iphone and its (cough) GSM network. All right, I thought I might have to acquiesce, you know–make the move.
OK, the phone is cool. It’s bling! It’s what’s up. It was intuitive, it felt right to the touch. I started to think, “Well, maybe I’ll have to (hit it homeys)—
—switch from the Big V—
—to the imposta AT&T—
—and get me some slammin’ qual-ih-tee.”
I figured “if I was gunna git me sum iphone-booty,” I’d check me out some multimedia at espn.com on the iphone.
Sorry, Charlie: no real multimedia. Why? Because Apple didn’t have the foresight to integrate the (hello?) ubiquitous Adobe Flash player, which REAL http browsers all do on the REAL internet. Maybe it’s just Safari that can’t handle it? Who knows, but if you want internet multimedia a la (standard) Flash, you’ll have to navigate to http://www.apple.com/feedback/ to let Apple know this would be a good idea for version III of the iphone. I guess if you want to waste time watching youtube videos, you wouldn’t need Flash.
OK, maybe I was being too hard on the fragile beauty, the iphone she be. I inquired of my lovely AT&T rep whether the iphone could tether to my business laptop so that I could go from mega-cool to serious in a few heartbeats. “Well, the iphone doesn’t tether,” the rep told me, “perhaps you should be looking at Blackberries…until the iphone makes some improvements…[including] improving its phone signal, especially when compared to the BB…, I would recommend the Blackberry.” Yeah, that was the AT&T store rep!
I can hear it now. “Hellno” might say that the AT&T rep probably gets a bigger commission for selling BB’s versus the iphone. If so, I’m not sure why; after all, he switched from his iphone to his Pearl full-time on 10/17/07 (per another webpage at Rimarkable). Musta been some reason for it. Now he has his eye on another fine BB product, the Curve.
OK, the iphone doesn’t have Flash, so there is absolutely NOT a full internet experience. AND to make up for what it can’t do (which the BB can’t either), the iphone can’t even tether to a laptop that CAN browse the internet for real (which of course, BB’s can do, i.e., tether).
OK, in the iphone’s defense, the phone has been sufficiently idiot-proofed. Apple hit a homerun here. It takes about the same (non) level of user technosavvy as is required to use as an ipod: same market, same waste of societal focus, same bling, same profit for Apple. Hey, who knows, Apple got into the phone business, they might break into the basketball shoe market to compete with Nike! Same market, same waste of…
Prospective user, if you’re into cool toys that triple as a medium quality phone, ipod, and admittedly (for the most part anyway) internet browser AND you can get a signal where you live, get the iphone. It won’t disappoint you. If you’re a prosumer, however, who wants to play but also do some real work, get one of the latest Blackberries.
Hellno,
my best friend got an Iphone the first week it came out and I played with it and played with it. I like it, its really cool. I dont mean to seem like I’m underestimating what Apple did, because it was truly remarkable. BUT, it is not a business phone. Why do I say that?
Well I didn’t even know about the tethering aspect, which is going to be big for business users, but also typing. I have gotten better typing on that thing over the months, but its still not as easy as typing on a keyboard with buttons. This is my major thing. Push email, is an advantage but a slight one, The moto Q and other phones offer email connectivity that is functional as well.
Also, security. iphone is a new device and its security is shaky at best. Business users are not quick to switch from platform to platform mainly over security, and this iphone, from what I am reading is not in the least bit secure. google iphone and security and see what I mean.
Those are 3 things, 2 of which (typing and security) are MAJOR. Thats why RIM has an advantage and an oppurtunity to hold its position with a the business segment. If Apple can fix those things (although I dont know that typing on a flatscreen is ever going to translate the same,) it can become an even bigger threat. Oh and call quality, but that should be the easiest of all the things to fix.