{"id":18338,"date":"2012-07-22T09:29:39","date_gmt":"2012-07-22T07:29:39","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=18338"},"modified":"2012-07-24T14:05:34","modified_gmt":"2012-07-24T12:05:34","slug":"how-rims-decline-will-impact-sa-users","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/18338\/how-rims-decline-will-impact-sa-users\/","title":{"rendered":"How RIM’s decline will impact SA users"},"content":{"rendered":"

Research in Motion’s (RIM)\u00a0BlackBerry\u00a0offering\u00a0is slowly falling behind in South Africa as its competitors continue to innovate, and offer consistently better products, according to\u00a0Simon Leps, CEO of digital solutions provider, Fontera Digital Works.<\/a><\/p>\n

Leps notes that\u00a0RIM\u00a0recently delayed the launch of its latest BlackBerry 10 operating system, deemed to be critical to the ailing company\u2019s survival.<\/p>\n

This, he adds, follows the poor execution and uptake of the BlackBerry PlayBook, the company\u2019s entry into the competitive tablet market and one of the most anticipated mobile computing products of 2011.<\/p>\n

Adding to this, during the first quarter of 2012, RIM reported a loss of $518 million and a 43% decline in revenue. These dismal figures resulted in the company laying off 30% of its labour force, that is, 5,000 employees.”<\/p>\n

He says that the company has been on a steady decline globally since 2007, with its US market share plummeting from 41.1% to 3.7%. But what does this all mean for South African users of BlackBerry? Leps questions.<\/p>\n

“Strong competitive market pressures, specifically from iPhone and Android smartphones, are one of the reasons for BlackBerry\u2019s descent. The smartphone manufacturer\u2019s lack of an innovative products and services pipeline means it cannot currently compete on the same scale as other players in the market. According to International Data Corp, RIM currently holds an insignificant 6.4% of the smartphone market, which is in comparison to rivals Apple and Android, who have a 23% and 59% market share respectively.<\/p>\n

“However, as BlackBerry\u2019s global performance continues to dwindle, the company\u2019s foothold in South Africa still remains strong. A study by Google revealed that BlackBerry occupies 44% of the South African smartphone market, which means the pressure for the company to remain one of the key players in this market is immense,” Leps said.<\/p>\n

“The truth is BlackBerry still remains a viable choice amongst higher-end consumers in South Africa, while still being a practical choice for lower-end consumers due to its all-inclusive data package and instant messaging platform, BlackBerry Messenger (BBM), provided by the BlackBerry service.”<\/p>\n

However, Leps notes that BlackBerry is slowly falling behind in South Africa as its competitors continue to innovate, offering consistently better products. “BlackBerry is also swiftly losing its competitive advantages, namely its BBM service and all-inclusive data package, to similar services being offered by competitors, such as the popular messaging application, \u2018WhatsApp\u2019.<\/p>\n

“Against this backdrop there are also rumoured plans by local operators to release Android phones, priced under R1,000, on a fixed-cost data plan. The importance of applications to the smartphone market is increasingly becoming an important factor for consumers when choosing a suitable smartphone,” the chief executive said.<\/p>\n

“Without the required significant numbers needed to fund growth, the gap between RIM and its competitors will continue to widen. BlackBerry cannot continue to compete with the R&D budgets of the tech giants Apple and Android. Without funding or an investment strategy overhaul, Blackberry\u2019s future is bleak,” Leps opined.<\/p>\n

However, the company head believes it is likely that RIM\u2019s poor performance will attract new investors and buyers. “As the company\u2019s share prices continue to slip downwards it is progressively becoming an attractive target for a potential acquisition. With a strong global presence, huge customer-base and public awareness, the company is still considered to be a powerful global tech company. Players in the market that can offer both innovative and technology-driven solutions to RIM\u2019s ailing plight, will be a suitable match to the company. Nokia anybody?”<\/p>\n

According to Leps, BlackBerry is currently down, but cannot (yet) be counted out. “However, they need to get going fast if they are to survive as a player and not go the way of Palm.”<\/p>\n

By\u00a0Simon Leps, CEO of digital solutions provider, Fontera Digital Works.<\/em><\/p>\n

Related articles<\/strong><\/p>\n

RIM continues Nasdaq bleed<\/a><\/strong><\/p>\n

RIM updates developer tools ahead of BB10<\/a><\/strong><\/p>\n

BlackBerry going from strength to strength in SA: RIM<\/a><\/strong><\/p>\n

RIM CEO promises big turnaround<\/a><\/strong><\/p>\n

BlackBerry handset manufacturers stop getting RIM contracts<\/a><\/strong><\/p>\n

BlackBerry make RIM shuffles board, shares drop again<\/a><\/strong><\/p>\n

RIM finally seeing a silver lining<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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