Tag: smartphone

Smartphone research comparing iPhone and BlackBerry often flawed

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competesept2009-lg

The research behind iPhone and BlackBerry comparisons that is making its way into the mainstream media is almost always flawed. The media loves to talk about the prolific nature of the iPhone and how technologically advanced its users are, while almost implicitly ragging on BlackBerry.

A recent study claims that iPhone owners are much more likely to download apps and get involved with social networking than their BlackBerry-owning counterparts.

The study shows that about 72% of iPhone users are likely to have downloaded at least 10 third-party apps, but 73% of BlackBerry users have picked up five apps or less. The researchers add that iPhone owners are more willing to buy their apps than BlackBerry owners.

When it comes to downloading third party apps, this study failed to recognize that bulk apps, shouldn’t be recognized as multiple applications. They are essentially the same app, templated and replicated by changing a few small pieces of data. This is where RIM shines in that App World isn’t filled with the same amount of useless garbage.

With regards to social networking, the researchers found that roughly 71% of Apple users have a Facebook account versus 44% of BlackBerry users. Twitter follows a similar trend with 26% for iPhone versus 15% for BlackBerry.

Social networking discrepancies is a demographics issue, not a device issue as the research implies. While BlackBerry is moving its focus to the consumer market, it still has years of enterprise users behind it and this could be skewing the numbers. In the end, we all know that the BlackBerry is an incredibly powerful social networking tool. Whether or not the older BlackBerry demographic is using these services is another matter.

One element of the research that I find particularly flawed, is the research that says 83 percent of users prefer apps that cost below $5. This is a consistent mistake that researchers make. They think that just because you have asked someone what they want to pay for something, that that information is somehow valuable. The truth is that everyone wants to pay the minimum, and if possible, get it for free. The reality of the situation is that if your app is well designed and provides a tangible benefit to the user, the $5 benchmark is meaningless. Just look at TetherBerry, it’s a $50 application that is one of Mobihand’s best sellers.

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Skyfire receives $5 million in funding to grow BlackBerry platform and more

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Skyfire for BlackBerry

Skyfire has announced they have received $5 million in funding. The funds will top off their Series B from existing investors Lightspeed Venture Partners, Matrix Partners and Trinity Ventures. The company will use the funds to support new smartphone platforms beyond Windows Mobile, Symbian and BlackBerry, as well as utilizing their unique technology for solutions beyond the browser.

It’s not obvious yet how RIM’s acquisition of Torch Mobile and their plans to update the browser will affect third party browsers such as Opera Mini and Skyfire. It’s possible that once RIM updates their browser, there will no longer be a need for third party browsers, as the experience would be adequate for the general user. On the other hand, third party browsers have been innovating in the space and there is something to be said for being the first to market. There may always be a need for third party browsers to deliver a browsing experience better than that of the native browser.

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Wired article: 5 things RIM needs to fix is a little off base

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bberry-busted-660x438

Wired recently published an article entitled “5 Things RIM Needs to Fix in its BlackBerries[sic].” The article is a great read, but I’d like to address a few issues with what Wired thinks RIM needs to improve.

The article goes on to highlight the following 5 areas where RIM needs to improve:

  • Browser
  • Touchscreen
  • App Store
  • WiFi
  • Desktop Software

Overall, I’m going to wholeheartedly agree with the list. RIM can always be improving every aspect of the BlackBerry platform and the company has plans that extend well beyond our current gripes.

Generally, the article missed out on explaining how RIM came to lack the features requested in the article, and how they must go about improving the situation.

It’s always important to note that the BlackBerry platform wasn’t founded on being a consumer device. RIM fell into the consumer market almost by accident. As more consumers adopt the device, the company is now faced with satisfying two, almost mutually exclusive markets.

Take for example the browser; highlighted in the article as being something sub-par and needing improvement. You can’t disagree with this but again, why are we here? The BlackBerry platform has always been focused on delivering totally secure communication for enterprise, and the browser was secondary to this focus. While it’s possible to update this browser and offer more functionality such as the ability to download files from the browser, there is a lot to take into consideration, not just the user experience. With each feature addition, you have to asses the security risks associated with said feature because it’s paramount to the brand.

The same argument applies to many of the other items on the list. App World, the touchscreen interface and the desktop software are all features of the BlackBerry platform that are lacking from a consumer perspective. But again, we’re moving from enterprise to consumers and the enterprise is still the most important market. Do you think government organizations with 50,000+ BlackBerry devices and an IT administration department controlling device policies care about a multitouch Storm? No, they care about a secure smartphone platform, and in this respect RIM is the best in the industry.

Another issue the article mentions is WiFi. The author asks: “why doesn’t the company have Wi-Fi in all its devices?” While there are probably a lot of reasons why, two come to mind and I’m surprised the author didn’t point them out.

1) Price: Offering WiFi significantly changes the price point of a device and RIM needs to be able to offer a wide range of prices to satisfy various markets. This is why the Curve is the number 1 selling smartphone in North America. The device comes in many iterations with varying prices for every type of user.

2) Carrier relations: When the user is on WiFi they aren’t burning through data and when they aren’t burning through data they aren’t spending more money. There are clearly deals going on at the executive level to stop certain devices from having WiFi because it’s good business for the carrier. You have to play ball with the carriers to get your product out there.

Overall, the article was great but writers are quick to forget where RIM is coming from, and where their allegiance lies. The consumer market is new to them and rest assured they’re getting there, but enterprise is what made this product great and they aren’t about to compromise the founding principles of the platform.

Read the Wired article for yourself.

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AT&T subscribers will require data plan with smartphone purchase

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blackberry_devices

Why would anyone want a smartphone without a data plan? That’s like buying a Ferrari with a Ford engine. Sure, the device looks stylish, but you need data to unlock the true power of your BlackBerry. Anyways, preaching to the converted.

As of September 6th, 2009, AT&T will begin requiring that all smartphones sign up for a smartphone data plan. Customers who activated their smartphones prior to September 6th, may continue to carry around a BlackBerry as a status symbol while not taking advantage of their device’s awesome powers. That last part should have been included in the official email.

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Device margins get smaller in competitive smartphone market

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BlackBerry Storm

On Thursday, RIM will be reporting results for the first quarter of fiscal 2010 after the close of the market. We’re expecting some good news from RIM in light of the current competitive smartphone pricing environment.

With the $99 iPhone and the Palm Pre launch, the smartphone wars have become much more intense. This is forcing RIM and other smartphone manufacturers, who wish to capture more of the consumer market, to lower their prices to increase sales. We have recently seen the Bold and the Curve 8900 drop around $50, and this, along with other carrier promotions, have helped sales tremendously.

Last quarter, RIM managed to beat expectations with sales increasing 84 percent to $3.46 billion compared to the same period a year ago. But gross margin was down to 40 percent from 51.4 percent a year ago, and 45.6 percent sequentially.

The issue therefore, is margins. By reducing device prices, you can increase sales, but profit margins are becoming increasingly slim in this environment.

The BlackBerry Bold costs around $169.41 to manufacture but this price does not include IP and a variety of other costs the carrier needs to pay. This means margins must be tight if AT&T sells the Bold for $199.99. By comparison, the BlackBerry Storm 9530 which carries a combined materials and manufacturing cost of $202.89, sells for $49.99 on Amazon.

RIM has a brilliant team of economists on board so while I’m sure they have assured the profitability of these devices, one can only hope that price wars don’t drive down profits enough to affect R&D and device improvements.

[Via]

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Introductory smartphone market and BlackBerry devices

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blackberry_pearl_flip_8200

The line between consumer and enterprise is blurred and many of what RIM has been doing in recent years, reflects a shift in their market. RIM is now selling BlackBerry devices to consumers and enterprise alike. Now, 70 percent of new users are considered a consumer, and overall, consumers make up half of RIM’s user base.

The BlackBerry Pearl is the ultimate introductory smartphone and RIM will be continuing with the series as long as there are still users who have not been converted to the smartphone realm. The BlackBerry Pearl and Pearl Flip are the beginning of this introductory smartphone device roadmap, with a 3G BlackBerry in the pipes already. Although the Flip sold significantly less than other BlackBerry models such as the Curve 83xx, it is still in its infancy, and the device had enough demand to merit making the form factor.

In the coming years we will see more introductory smartphones from RIM to fill the many niches in the market. You will never love every device you see from RIM, but there will always be a device for you.

Here are some introductory devices you may or may not see from RIM:

  • 3G BlackBerry Pearl (unofficially confirmed)
  • BlackBerry Pearl Slider (we have seen the patents)
  • BlackBerry Pearl Touch (RIM is on a streak of combining devices Pearl + Storm)

Personally, I would like to see the conversion rates of BlackBerry Pearl users who move up the smartphone chain to purchase either a Curve or a Bold. I suspect the Pearl does wonders for convincing users of the joys of smartphone ownership.

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Rogers survey data of Canadian smartphone users

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BlackBerry Bold smartphone

Rogers has done some research regarding Canadian habits with respect to smartphone application consumption. The survey was conducted by Canadian research firm Ipsos-Reid and found a couple interesting stats regarding smartphone user downloading habits.

The data found that the average smartphone user has downloaded 19 apps in the past year. One of the first questions I would like to know is, “how many of those apps were free?” Users are downloading more apps than ever, but we still have a ways to go to convince the average smartphone user that apps are worth what developers are asking. Try convincing a first time smartphone user to pay $39.95 for IM+ All-in-One Messenger.

The survey also found that one in four of Canadian smartphone users, downloaded an app from an app store. This data brings to light an obvious fact that when the content is placed in front of the user’s eyes, they are very likely to try something out. As smartphone users get more comfortable with the purchasing process, we’ll see a greater adoption of smartphone content.

Although this data is only a glimpse at a host of theories and discussion surrounding smartphone user habits, we can see that things are moving in the right direction.

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Hackers paid $10k to hack BlackBerry with no success

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stormwithlock

CanSecWest. a conference focused on infosecurity, is offering $10,000 for each and every successful attack they can execute on any of the five major smartphone operating systems: BlackBerry, Android, iPhone, Nokia/Symbian and Windows Mobile.

The companies behind these products are helping pay the hackers (developers?) with the hopes of learning more about how to improve their device security. Some hackers are finding it very difficulty to hack the devices. “I can’t break them…I don’t have anything for the iPhone, and I don’t know enough about Google,” says Charlie Miller, a guy who recently hacked a MacBook in less than 10 seconds.

So it seems your personal data is much safer than you may have thought.

[Al Sacco CIO Via]

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iPhone 3.0 vs Palm Pre vs BlackBerry vs Android vs WinMo

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iphone3osfeatchart

The above comparison chart is an interesting way to look at the smartphone market’s most popular devices. The list is missing Nokia, Motorola and LG, but the chosen devices are close competitors and the information is still very well put together.

Before you let the Hatorade out about this list, the author would like you to know a few things:

  • I used a set of arbitrary criteria to set up this chart, but I’ll tell you what they are. For iPhone 3.0, we’re using only features Apple permits. Yes, it’s possible to jailbreak or unlock your iPhone to add other features or carriers, but Apple will consider you an enemy and try to destroy your phone if you do that, so we don’t approve. For Windows Mobile, we only used features available in the US marketplace right now–though Windows Mobile 6.5 won’t change the landscape much. For Google Android, we used features publicly available on the G1, HTC Magic or Google Developer phones. And for Palm Pre, we guessed as best we could based on Palm’s public statements.
  • Yes, I left out Symbian. They’re just not a force in the US marketplace right now, and I’m a US writer. Maybe next year, guys.
  • This chart tries to steer clear of hardware features that may vary by phone model with the more prolific OSes
  • .

    Some things I would note about the list:

  • BlackBerry applications are probably in a number range close to Windows Mobile. Since both platforms cater to enterprise, when a company develops for Windows Mobile it usually includes a BlackBerry port.
  • App World is coming soon so that will be added to BlackBerry’s column.
  • I would have compared BlackBerry on BES because it’s an enterprise device that should be used on said system.
  • [Via]

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    Cisco predicts 4G to boost mobile data consumption

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    Cisco is predicting that global mobile traffic will increase 66-fold between 2008 and 2013, with a compound annual growth rate of 131 percent over the same period. This growth in mobile data consumption reflects an adoption of 4G, which will bring total mobile traffic as high as exceeding two exabytes (1000 petabytes or 10^18 bytes) per month by 2013. I’m thinking that the majority of this data will come in the form of rich media, but we’re also seeing a complete transition from dumbphone to smartphone.

    [Via]

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