Tag: market share

Research in Motion Annual General Meeting (AGM) Live Coverage


RIM will hold its AGM of shareholders today at the Centre for International Governance Innovation (CIGI) at 6:30 PM ET. It should be an interesting meeting as a lot of shareholders will be asking what the company’s plan is considering the increased competition in the smartphone market, and how the company plans to remain competitive. If one had to guess how the meeting will go, it will likely be focused on the recent announcements and won’t go into much detail about the competition, if at all. RIM generally doesn’t like to comment on any other smartphone.

Here are some of the topics you can expect RIM to highlight:

App World 2.0 and the benefits of carrier billing and 5.0 preloads.
BlackBerry Protect
BlackBerry OS 6 from a developer perspective.
BlackBerry OS 6 from a consumer perspective.
The BlackBerry Bold 9650
The BlackBerry Pearl 3G

You can watch a live webcast of the event by logging on at their investors’ portal.
You can also join Financial Post Technology reporter Matt Hartley as he reports live from the RIM AGM.

We’ll also be writing articles if anything of interest is said at the event.

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Latest comScore Data Shows BlackBerry Dominates US Market


Recent data from comScore suggests that RIM controls 43% of the smartphone market in the US. The data has been collected from November 2009 to January 2010, and suggests that there are 42.7 million smartphones users in the US. According to these numbers, you would expect over 18 million people to be using a BlackBerry in the US during the period recorded. Another interesting data point relates to the growth rate during this period.

According to comScore, BlackBerry grew by 1.7% from November to January, while Apple only climbed 0.3%. These numbers are vastly different than the global growth rates recorded by IDC. Analyst market share reports are continually coming out and it’s always important to take notice of how the data is collected before running to the bank with these numbers.

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RIM and Apple dominate operating profits while Nokia slumps


It seems Nokia is on a downward spiral while the other major smartphone manufacturers are fast gaining market share. Nokia, the leader of global handset distribution, has dropped the most in market share over the the past 5 years.

Despite only selling 3% of the world’s mobile phones, Apple and RIM are dominating when it comes to profitability. Together, the two companies make up for 35% of the total industry’s operating profits. Analysts are saying that if RIM and Apple’s market share were to climb to 5%, it could translate to them owning roughly 58% of the total operating profits.

It just goes to show that we’re entering a new economy of mobile devices, where ubiquity isn’t enough. You have to be constantly innovating and offering not only hardware with new features, but a system of delivering innovative software to the customer. Nokia has the Ovi Store, but I doubt developers are seeing any significant revenue from it.

The software truly makes the hardware these days.



RIM takes greatest share of smartphone industry profits



Deutsche Bank analyst Brian Modoff has calculated operating profits for the top smartphone manufacturers and the results are quite favorable for RIM.

The above chart shows Apple (pink) and RIM (turquoise) increasingly taking a disproportionate share of industry profits, mostly at the expense of Nokia’s diminishing handset operating profits (blue).

“Increasingly, the smartphone vendors are claiming more of the industry’s profit dollars even as the pool of profitability stabilizes or shrinks” says Modoff.

RIM is performing better than Apple when it comes to market profit shares. RIM has increased its estimated share of industry profits from 8 percent (2007) to 19 percent (2008) to 35 percent (2009). This is compared to Apple’s 31 percent market share.

As the smartphone industry grows, companies are going to have to look to ways to increase both device profit margins, and total market profit shares.

App World, and manufacturer-based content portals, are going to be key to future profitability. Modoff expects total unit sales to decline slightly this year back down to one billion, while industry revenues will continue to come down from their 2007 peak. This means that RIM will need App World to make up lost revenues from device sales with content purchases.

Enterprise will also be a revenue channel supporting RIM in the coming years that few other device manufacturers will be able to capitalize on in the same way. Major organizations are rolling out full BlackBerry solutions, as RIM takes an increasing share in the enterprise market. Flush with cash and eager to increase efficiency, enterprise will provide RIM with the cashflows needed to sustain research and development and continue making incredible smartphones.



RIM continues to gain smartphone market share


It has always surprised me that RIM only has around 10% of the smartphone market share. Sometimes I think these numbers might be skewed for a few reasons:

1) How does the survey define a smartphone? I bet many of the models described as smartphones are not “smart” in the sense that BlackBerry users are used to.
2) It’s a global market share. I’m really only concerned with North America and Europe.
3) It’s a conspiracy and Bill Gates is at the center of it all.

During Q4 2008, Nokia’s overall market share fell from 50.9 percent to 40.8 percent and smartphone sales dipped a whopping 17 percent to 15.6 million units. During that same period, RIM doubled its market share, perhaps due to a void left by Nokia.

Where can RIM make big market share gains?

Consumer – If RIM keeps pumping out devices that will get the average user interested, they can make some serious market share gains. It’s about time that people put down their RAZR and pick up a device that is not only a status symbol, but a device that will change the way you feel about technology.

Enterprise – Just keep doing what you’re doing guys. A few more updates to BES, as well as a boost from the dev community, should really give RIM a device that every company will be required to use and abuse.

What would you like to see from RIM in the coming years?