Natasha Lomas, RIM s Lazaridis on why Qwerty s still working; ZDNet News: May 16, 2008<*> in VS .NET

Creator Data Matrix 2d barcode in VS .NET Natasha Lomas, RIM s Lazaridis on why Qwerty s still working; ZDNet News: May 16, 2008<*>
20 Natasha Lomas, RIM s Lazaridis on why Qwerty s still working; ZDNet News: May 16, 2008<*>
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smartphones made by RIM and Apple because they had a longer shelf life Some said RIM, with its one-trick killer app the ability to deliver instant, secure e-mail anywhere would keep on ruling the of ce space and make inroads outside the corporate world But most agreed that it was shakeout time, and that the industry was going to wind up with fewer competitors a year down the road At the Motley Fool website, almost 5,000 members weighed in on RIM s chances of success in the fall of 2008 Most were upbeat in the face of continuing demand One contributor, DemonDoug, posed the rhetorical question, What kind of company is most likely to survive a severe downturn, even a depression, and possible US dollar de ation (and therefore beat the S&P 500) His answer: One with no debt, like Research In Motion But the more bearish and negative members felt that: 1 RIM was falling behind Some worried about RIM s increased spending for new BlackBerrys and its ability to bring products and applications to market on time They argued that Apple s iPhone sales in the third quarter of 2008 were 69 million compared to 61 million BlackBerrys in the same period (although the two companies use different sales tracking, Apple counting sales when they leave their warehouse in Asia) Also, Apple and Google had their application stores up and running in mid-2008, while Research In Motion s own BlackBerry App World didn t open its digital doors until March 2009 2 The iPhone and smartphones from Nokia and Motorola were causing a drop in prices and creating margin issues RIM once owned the smartphone market and brought in steady pro ts Now it needed to work harder and spend more on marketing to compete on price, features, and fashion
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3 The party s over Like other huge companies such as Oracle, RIM s best days of growth are behind it, and there are better investment opportunities in smaller companies 4 New entrants are arriving from Asia Paci c: HTC, Samsung, and LG The HTC Dream is the rst phone that runs Google s GPhone Android mobile operating system It uses T-Mobile s 3G data network on the 1,700 MHz band Like the BlackBerry, it comes with a tiny jog ball trackball device 5 It would be a mistake to write off competitors such as Microsoft s Windows Mobile and the Symbian operating system of veteran Finnish phone maker Nokia At a gloomy RBC Capital Markets conference in November 2008, Jim Balsillie told analysts that There are more variables, more need to navigate, more need for hands on the wheel and eyes on the road right now If you don t, you do it at your peril Balsillie said RIM was better at what it does now than ve years ago and didn t believe that people would give up mobile devices in a tough economy I am really quite excited by what we think we can do coming into this season UBS analyst Jeffrey Fan felt that RIM would be affected by the slowing market Although consumers are unlikely to get rid of cell phones, they may be more cautious about adding incremental monthly data fees, which could slow sales We expect replacement cycles to continue to lengthen Balsillie s take was simple and direct: The opportunity has expanded, but so has the level of contention The lag in getting the Bold to market had hurt RIM s bottom line Fortunately for Balsillie, in spite of a huge collapse in corporate spending, the trend in purchasing smartphones was staying strong Companies were realizing that the bene ts of the newer, faster, more powerful BlackBerrys far outweighed the price
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