In yesterday's post I promised to provide some backup about Blackberry's dominant position among leading mobile platforms. Here's some interesting current reading on the subject.
For the full article, see http://money.cnn.com/2009/06/17/technology/rim_blackberry_preview/index.htm?postversion=2009061710. The article deals with current sales momentum in relation to iPhone and Palm Pre. I will complete the picture with a followup post to provide total units in-service information.
NEW YORK (CNNMoney.com) -- Apple's iPhone 3GS and Palm's Pre has captured a lot of hype but don't count out Research in Motion's BlackBerry just yet, say experts.
"The buzz about other signature devices can make people overlook RIM's success," said Ryan Reith, senior research analyst at IDC.
While the iPhone enjoyed an initial pop in market share after the second generation version was released last July, that share has been nearly cut in half.
In the first quarter of this year, BlackBerrys had a 55.3% share, compared to 19.5% for iPhones, according to IDC data.
Compare that with the third quarter of 2008, when BlackBerry devices controlled 40.4% of the U.S. smartphone market, compared with 30.1% for Apple.
Solid footing. When RIM (RIMM) releases its financial results after the closing bell Thursday, analysts expect the company to report a very solid fiscal first quarter. Revenue is forecasted to rise 53% and earnings are expected to grow 12% for the quarter ended May 31.
Much of RIM's anticipated success lies in its ability to grow market share even as competitors launch new flashy devices.
Analysts expect that market share to grow into next year, despite the mostly negative reviews for its first touchscreen device, the Storm, and new launches from Apple (AAPL, Fortune 500) and Palm (PALM).
A recent Yankee Group survey showed 41% of Americans plan on buying a smartphone for their next phone purchase, and 50% of those people plan on buying a BlackBerry. Only 25% said they would buy an iPhone.
Experts cite competitive pricing, business expertise and new consumer products as reasons for RIM's sustained growth.
Pricing. RIM may not offer the interactive operating system experience that the iPhone, Pre or Google's (GOOG, Fortune 500) G1 phone offer, but RIM offers BlackBerrys that beat them in end user cost.
That's because every major U.S. wireless carrier offers at least one BlackBerry device, unlike competitors, which have exclusive contracts with AT&T, Sprint and T-Mobile. With the carriers fighting for customers, many offer discounted rates, including Verizon's aggressive "buy one get one free" promotion for its BlackBerry line.
Analysts say wireless providers can afford to offer competitive pricing because BlackBerrys cost less for them to operate than iPhones and Pres.
"RIM's design is much more bandwidth-efficient than its competitors, so carriers make the most money off the BlackBerry platform," said Nick Agostino, RIM analyst with Research Capital Corp. "Once two carriers in the same market offer BlackBerrys, they start to compete against one another and RIM is the beneficiary."
Cheers,
Dave
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