NY Times: Blackberry Under Siege in Europe

[vrs626]

BlackBerry Under Siege in Europe
By BRIAN X. CHEN
Published: January 29, 2012

The iPhone has taken a big bite out of the BlackBerry in a market where the older phone once dominated: business customers in North America.

Meanwhile, in Europe, Samsung is poised to do the same to Research in Motion, BlackBerry’s maker, as a growing number of businesses are buying, or plan to buy, phones using the Android operating system.

Although BlackBerry is a must-have accessory for the growing business class in the developing economies of the world and RIM is adding customers there at a healthy clip, the company faces a problem in its established markets. Businesses are looking for another option besides the BlackBerry.

RIM, Apple and Android phones now equally share the workplace market. In a recent global survey of information workers — people who use a computer or another smart device for at least an hour a day — Forrester Research found that 27 percent of smartphone users said they had an Android phone; 26 percent, a BlackBerry; and 24 percent, an iPhone. “Android and Apple together are eating BlackBerry’s lunch,” said Frank Gillett, a Forrester analyst.

While some companies are cautious about allowing employees to use Android phones in the office because of security concerns, more businesses that let employees bring their own devices have approved Android devices. Apple’s iPhone continues to be popular. Samsung Electronics sold 300 million handsets in 2011 and became one of the biggest phone manufacturers in the world. It appears to be in the best position to profit from a shift in the market.

“We’ve seen quite a huge growth of Android in the enterprise over the last 18 months,” said Nick McQuire, research director of enterprise mobility strategies at the International Data Corporation. “We see it as being neck and neck with Apple to be a top mobile enterprise platform in Europe.”

RIM’s answer to the increasing popularity of Android handsets and the iPhone is a new version of the BlackBerry software, called BlackBerry 10. But phones based on the new software system have been delayed several times and are now not expected until late 2012. Thorsten Heins, the company’s new chief executive, said the new software would address the “consumerization of I.T.,” referring to the growing trend of businesses letting their employees choose which devices they bring to work.

Mr. Heins believes that RIM’s advantage in the business market remains the company’s focus on security. He said that RIM regularly speaks to chief information officers, who say they do not like that Android devices and iPhones have become prominent in the work place.

“They are in a pickle. Their pickle is security,” Mr. Heins said in an interview. “When the first big security flaw even happens in one of the large enterprises, you will see this turn around. Wait for the day this happens.”

But waiting is not something people in businesses are doing. I.D.C. recently surveyed business managers and information technology managers at 728 businesses across seven Western European countries and found that Android was the fastest-growing mobile operating system for business customers in 2011.

Chief information officers at big enterprises said they were not yet formally supporting Android, though all of them have said they had plans to do so in the next 18 months. They are probably hesitating because they need to plan security measures to protect corporate devices, Mr. McQuire said.

Still, the general acceptance of Android in European businesses is a harbinger of RIM’s continued struggles. The Tieto Corporation, a European firm that provides information technology services to large companies, said it had seen strong and increasing demand from customers for Android-based business software. Ville Virtanen, an enterprise mobility marketing director at Tieto, said that customers found Android phones to be cheaper and that the software was the least complicated for distributing work-related apps to employees.

And security concerns are being addressed. Some of Samsung’s new phones, like the Galaxy S II, include extra security features for enterprise customers. The newest version of Google’s Android operating system, called Ice Cream Sandwich, has built-in encryption. In October, Samsung introduced a program called Samsung Approved for Enterprise, which includes a suite of tools tailored specifically for businesses.

Apple’s ascendance in the business market with the iPhone and iPad has been especially surprising to many people because the company had shown little interest in catering to the needs of corporate users when it made solely computers. Not long after the iPhone came out in 2007, however, Apple began adding features to the device, like better compatibility with Microsoft’s Exchange, a messaging system that is ubiquitous in big companies.

“Once Apple added those capabilities, the floodgates opened,” said Mr. Gillett of Forrester. “It was very hard for I.T. to look the C.I.O., C.T.O. and powerful employees in the eye and say, ‘You can’t use that device.’ ”

Planet Magpie, a California-based information technology consulting firm, said that employees working for the majority of its 350 clients were using the Apple phone. “A lot of people on BlackBerrys have switched over to the iPhone,” said Robert Douglas, president of Planet Magpie. He said that for many businesses, ditching the BlackBerry has actually decreased costs, because companies no longer have to support the BlackBerry enterprise server, RIM’s proprietary system designed to protect data on devices. RIM’s server, he said, was “always a bit flaky.”

RIM also faces practical alternatives to the BlackBerry enterprise server, like Good Technology, an information technology company that provides security and management tools for iOS, Android and RIM devices.

The wild card in the enterprise sweepstakes is the Microsoft Windows smartphone. Nokia, the giant phone maker, has staked its future on the new software, called Windows Phone 7. Information technology managers are comfortable with Microsoft, and the company has deep relationships with most companies.

The big question is whether Microsoft and Nokia will be ready in time to exploit RIM’s weakness. Windows Phone 7 is shipping on several new handsets, like Nokia’s well-received Lumia 900, and its Windows 8 software for tablets is set to land this year.

Kristen Batch, a spokeswoman for Microsoft, said the company was not ready to announce its plans for business customers.

Waiting is a risk RIM and its new chief executive are willing to take. “I don’t want to launch a product that isn’t ready,” Mr. Heins said. “I want it to be a perfect experience.”

http://www.nytimes.com/2012/01/30/te...om-rivals.html

[kevinnugent]

The Blackberry is once again the most popular smartphone in the UK, though. Although, maybe it's the kid's buying it that is making it so?

[Dapper37]

Originally Posted by kevinnugent

The Blackberry is once again the most popular smartphone in the UK, though. Although, maybe it's the kid's buying it that is making it so?

RIMs critisized for a lack of youth in the US that buy product. The good news is thats not the same everywhere.

[daveycrocket]

I live in Europe the uk, this articale in my opinion has deep bias, The evidence around me is that more and more my friends and family are migrateing to BlackBerry.
Even the UK figures are up there in the news but there are those who choose to trash them saying that they are just the young buying, I am a mature person as many are of my friends and we choose BlackBerry.
Also the young are the stock of the future and they in the UK are turning away from the glitsy alternatives, it maybe about cost of equipment but I think it is more about data cost. The UK also seems to be more about the phone as a efficient tool not about a platform to play games on or sometimes meaningless applications that seemed a good idea/must have at the time.
Where in the bias is actual fact been taken from the europian market.

Sorry for the rant.

[lnichols]

One thing is for sure, RIM should be releasing BB10 devices for older, non-LTE networks too. Other markets won't keep waiting for RIM either. I don't even want an LTE device, but do want an HSPA+ 42 Mbps BB10 device because that is all my carrier will have for some time. Verizon shouldn't screw it up for the rest of us or the world where LTE doesn't exist and will be heavily fragmented spectrum wise even when it does exist.

[brucep1]

And THIS is why people made such a deal out of them losing the US Market. Often times, the rest of the world soon follows.

[Houshinto]

Coming from a US newspaper, would it be THAT surprising to think they'd claim that the US is the trend-setter what the whole world will emulate?

Sorry, these are the same generalizations that breeds ignorance. Mind you, if this kind of reporting get repeated again and again maybe "the trend" will come to fruition.

It's called a self fulfilling prophecy. Something that has been used a lot in the media against RIM.

[NJPhilliesPhan]

Don't blame the USA for RIMs fall, the American market is very competitive and consumers choose the best and most advanced devices; which currently is Apple and Android. Trust me other markets would do the same if IPhones were cheaper, they choose BB because of price. The exception of course is the Canadian market that would buy a BB even if it was rotary dial.

[Economist101]

Originally Posted by Houshinto

Coming from a US newspaper, would it be THAT surprising to think they'd claim that the US is the trend-setter what the whole world will emulate?

It would be surprising, since the article makes no such claim.

Originally Posted by Houshinto

Sorry, these are the same generalizations that breeds ignorance. Mind you, if this kind of reporting get repeated again and again maybe "the trend" will come to fruition.

Really. I didn't notice any "generalizations" not supported by either a quotation of some kind or statistical data; it sounds to me like you didn't actually read the article.

Originally Posted by Houshinto

It's called a self fulfilling prophecy. Something that has been used a lot in the media against RIM.

Actually it isn't called that at all. Let's be clear on this: one person can't create a "self-fulfilling prophecy" for someone else. An example of a "self-fulfilling" prophecy would be someone who says/believes they can't pass a test for whatever reason, and then fails the test in part because they lacked faith in themselves, and not "I failed the test because that guy thought I would." Therefore, there's no way to use a Self-fulfilling prophecy against anyone, including RIM.

[sam_b77]

Enterprise in Europe?? Is there any business left in Europe? No wonder they are not buying BBs. They only sleep and play Angry Birds. Asia is where enterprise is moving and RIM sales reflect that.

[sam_b77]

Originally Posted by Economist101

Actually it isn't called that at all. Let's be clear on this: one person can't create a "self-fulfilling prophecy" for someone else. An example of a "self-fulfilling" prophecy would be someone who says/believes they can't pass a test for whatever reason, and then fails the test in part because they lacked faith in themselves, and not "I failed the test because that guy thought I would." Therefore, there's no way to use a Self-fulfilling prophecy against anyone, including RIM.

LOL....that's logic well applied. I had to laugh out at that one.

[i7guy]

Originally Posted by Economist101

snip...
Actually it isn't called that at all. Let's be clear on this: one person can't create a "self-fulfilling prophecy" for someone else. An example of a "self-fulfilling" prophecy would be someone who says/believes they can't pass a test for whatever reason, and then fails the test in part because they lacked faith in themselves, and not "I failed the test because that guy thought I would." Therefore, there's no way to use a Self-fulfilling prophecy against anyone, including RIM.

Actually it's called "the malook". The "malook" is a device used to create a self-fulfilling prophecy against someone. It's very insidious and works very well.

[Slash82]

I´m from Germany and what I see is that the smartphone market is unstoppable growing, hand in hand with the Iphone and Samsung.

Sad to see that Blackberry is not very popular for the "consumers".
Sure it´s still the #1 in business, but not popular as a consumer´s device.

There are 2 things that matter in Germany:

1. Pragmatic
Germans think very pragmatic - hard comparison between specs. and money.
If they need those high specs. or not - doesn´t matter.
That´s what does count more in Germany, than in any other country.
Under the line Samsung offers the best specs. on the market (at the moment).

2. Marketing/Commercials
Commercials have a BIG infulance to the German consumers.
If TV ads tell them "That thing is cool" - They think it´s cool.
So, also Apple is very "hip" over here, most people don´t really know how to use a Iphone or not, but it´s hip - commercials say that!
They are present on TV.

I think if RIM would more be seen in commercials people would buy Blackberrys!
There is a huge potential!!
Especially an Iphone is something "everyone has" - a Blackberry would be "new".

I never understood why RIM never showed up at any big airport over here?!
e.g.:The playbook is the perfect device for mobile computing - but no one knows it!
Or why they never found any Hollywood stars to make commericals with them - that would be a VERY huge thing!!

The problem is not that people don`t like Blackberry - they just don´t know it.
Also all commercials I have seen on TV were very sh**y - there are better ones on youtube...

And when I tell anyone that I use a BB - the most common question is:
"A Blackberry? You mean that business device for email? Why do you need that?"
They don´t know that it´s smartphone.
It´s still just "that email thing with the buttons"

[N8ter]

Originally Posted by lnichols

One thing is for sure, RIM should be releasing BB10 devices for older, non-LTE networks too. Other markets won't keep waiting for RIM either. I don't even want an LTE device, but do want an HSPA+ 42 Mbps BB10 device because that is all my carrier will have for some time. Verizon shouldn't screw it up for the rest of us or the world where LTE doesn't exist and will be heavily fragmented spectrum wise even when it does exist.

HSPA+ 14.4 really is enough for a T-Mobile phone. Their network is terrible and releasing a ridiculous number of 42Mbps devices will do nothing but ensure your speeds are so low that you mind as well should have just gotten a HSPA 7.2 Mbps device and enjoyed twice the battery life from the beginning.

Seriously, I have a full 3G signal with 200kbps download speeds on T-Mobile here.

The last thing they need are more bandwidth hogs, and the last thing people need to do is hype up 42Mbps radios as if they will ever see even 21 on T-Mobile's network (they won't, ever, unless everyone in their area logs off and they're across the street from the tower).

Almost all speed tests I've seen on 21-42 Mbps T-Mobile devices showed speeds that are easily obtainable on a 14.4 Mbps handset.

AT&T got it right by upgrading to 21 Mbps and settling there until their LTE network is rolled out.

[geoffsdad]

Wanna see for yourself, go on the BBM app smoothie. Of the participants I see on there, there seems to be more people from the UK than anywhere else. And, they are not kids. UK followed by South Africa and Canada. I see only a few from the USA and only occasionally run into somebody from Australia.