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launch, Apple sold 1 million iPhone 3Gs in twenty-one countries Happy users downloaded 10 million programs from the newly launched App Store on iTunes over that rst weekend In all, the iPhone gobbled up 173 percent of the world s fast-growing smartphone market in 2008, up from just 36 percent a year earlier Now RIM seemed slightly dowdy, and risked becoming another Palm, or being seen as the John Hodgman character in the I m a Mac, I m a PC commercials In the month following the iPhone 3G launch, the bad news bears drove RIM stock down 31 percent, from a record $14813 in June The whole world wondered, Could RIM compete in the smartphone arms race Could RIM come up with a killer response to stem the bleeding and retain a BlackBerry ock thinking of defecting to the iPhone
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What distinguishes the BlackBerry from the iPhone is the back-end support Roger Kay, Endpoint Technologies When the iPhone 3G hype died down, people started putting the Apple and RIM devices side by side and a different picture emerged They found that, unlike RIM s Bold, Jobs s new baby didn t have stereo Bluetooth for wireless listening It didn t do video recording It lacked multitasking, or even copy and paste It didn t yet work as a tethered modem It still didn t have of ce level security Users got frustrated by not being able to swap SD memory cards or carry along an extra power supply, causing that well-known psychological condition called battery anxiety On balance it was a Mexican standoff, with RIM s business features and open slots easily matching Apple s touch screen and browser To a tech media eager for angry RIM reaction, Jim Balsillie ever the hockey jock simply replied that RIM welcomed the
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From Brand to Icon: Seven Years in Motion
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competition This wasn t a throwaway line RIM s engineers respected what Apple was doing, but they knew they had many superior goodies, plus the bandwidth economy and super-security needed by paranoid corporations and their wireless road warriors Also, as Balsillie suspected, the iPhone s entry into the market raised awareness about what smartphones could do and got people salivating for more Steve Jobs had simply whetted the market s appetite for BlackBerrys When the rst rumors of the iPhone 2 surfaced, jittery investors sold RIM short, assuming the company would get pasted by Apple But not so fast RIM actually experienced a big bump in US sales, with its share of the smartphone market swelling from 35 percent in the fourth quarter of 2007 to 45 percent in the rst quarter of 2008 In the twelve months since the original iPhone launch, retail sales of the BlackBerry rocketed 38 percent Wrote Pablo Perez-Fernandez, an analyst with Global Crown Capital, There were a lot of BlackBerrys in those stores where iPhones were selling, and there were people who may not have thought about a smartphone before, wanted the iPhone, thought it was too expensive, and bought a BlackBerry instead Clearly there was plenty of business for both companies What the iPhone did was make it cool to use smartphones, said Ramon Llamas, an analyst with IDC Before, you had the BlackBerry, which mostly just resonated with enterprise users or business people Now, there s a whole new market of smartphone consumers Before the phone came out, I actually asked guys from companies like Nokia and RIM how they were going to respond, and the answer was unanimous it was, Welcome to the party, hop in the pool, the water s ne 9
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9 What s Good for Apple is Better for Everyone Else, by Betsy Schiffman for Wiredcom Jun 9 2008<*>
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Mike Lazaridis took the long view about the entry of Apple: I think that BlackBerry was the rst and best integrated and most secure smartphone solution in the world a decade ago And it continues to be today But I think what happened was the amount of marketing and the attention [Apple] generated in the market the customers are now coming to the store and saying I didn t know you could do all that with a phone And when they get there they realize there s a selection there s not just one device And so what it s actually done is increased our sales 10 Jim Balsillie said his product strategy wasn t swayed by the iPhone, and RIM didn t need to copy Apple RIM s plans, he said, included boosting advertising spending, hiring more engineers, and accelerating product introductions, starting with the BlackBerry Bold Balsillie said companies would pick the BlackBerry over the iPhone because the e-mail service was more reliable and the keyboard better for business users We know where we re heading, he said We ve got all the growth we can handle Balsillie told reporters he d rather take the lead, not follow I play offense, he said There s no glory in defense
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The Windows world has always had a prejudice against Apple Perhaps it was the 1984 Super Bowl ad, which portrayed IBMers as automatons, that started things Then there was Cupertino s computer for the rest of us attitude Recently it has been the I m a Mac, I m a PC ads that have stoked the res of envy Windows fanboys also don t like Apple s walled-garden approach to computing users can t even swap the iPhone s battery No
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