[amazinglygraceless]

Research In Motion Ltd (BBRY) Still Losing To Windows Phone

Research In Motion Ltd (BBRY) Still Losing To Windows Phone
July 3, 2013 By Michelle Jones

Things seem to be going from bad to worse for Research In Motion Ltd (BBRY). Windows Phone has overtaken the platform for third place and doesn�t show any sign of slowing down. Also corporations are shutting down BlackBerry Enterprise Server rather than migrating to BlackBerry 10, saving costs and effectively cutting off support for BlackBerry devices.

Things just don�t look good for Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB). Analyst after analyst has downgraded the company�s stock after its sad earnings report last week, and now the latest data from Kantar shows just how quickly the company�s market share is deteriorating. Data from other sources also indicates that enterprise and developer interest in the BlackBerry platform are fading as well.

BBRY�s Falling Market Share

The information from Kantar shows that Windows Phone has overtaken Blackberry, particularly in Europe. BlackBerry�s market share dropped to 2.5 percent from 7 percent at the same time one year ago. Windows Phone, on the other hand, rose from 4.3 percent last year to 6.8 percent of the European market this year.

BlackBerry is also fighting a losing battle in Mexico, where Android market share leaped from 27.1 percent last year to 60.3 percent this year. BlackBerry�s market share dropped from 32.3 percent last year to 11.3 percent this year.

In terms of global market share, data from IDC shows that Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)�s share fell to 2.9 percent this year from 6.4 percent this year. Windows Phone replaced BlackBerry in third place for global market share.

BBRY Loses Enterprise Customers

There are also other signs that Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)�s struggle is just getting worse. Bloomberg�s Peter Burrows and Madeline McMahon highlighted other areas in which the BlackBerry maker�s chances to become a third option to Android and iOS are fading.

One of the biggest problems for Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) is the fact that large corporations appear to be shutting down BlackBerry Enterprise Server, the software which provides a secure backbone for corporate users, rather than migrating to BB10. This saves expenses and lowers companies� IT costs. However, BlackBerry devices don�t have most of the security features they have when used with BES, so they lose their attractiveness without BES.

The company�s Secure Work Space, which was announced in June and is designed to allow companies to manage other devices in addition to BlackBerry devices, is also not grabbing hold in the enterprise sector. Maribel Lopez of Lopez Research told Bloomberg that companies are still using independent platforms like AirWatch and MobileIron rather than BlackBerry�s Secure Work Space.

BBRY: More Interest In Windows Phone

Microsoft Corporation (NASDAQ:MSFT) offers Intune, a similar mobile management system, although it offers software tools so that independent platforms can still be used. Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) won�t share these tools, so its Secure Work Space offers fewer options than Intune. Experts say companies generally want to be on one console, but to do that, they have to shut down BlackBerry support.

Also Microsoft Corporation (NASDAQ:MSFT) has the attention of developers, who are already familiar with its operating system. Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)�s new BlackBerry 10 operating system is less familiar, and researchers say there�s little indication that developers are interested in learning how to work with it. Also Microsoft offers money to developers who write for its platform, while BlackBerry does not.

[amazinglygraceless]

I know there will be those that view the article as more "doom and gloom.." That isn't why I posted it. What I found of interest was that it bucks the conventional wisdom that BBRY's market share woes are in the U.S. only. This does not appear to be the case and I'm interested to see how BBRY "corrects" this.

Ideas??

[h20work]

I know there will be those that view the article as more "doom and gloom.." That isn't why I posted it. What I found of interest was that it bucks the conventional wisdom that BBRY's market share woes are in the U.S. only. This does not appear to be the case and I'm interested to see how BBRY "corrects" this.

Ideas??

The numbers from Mexico are scary.

Wonder what the numbers from India and SE Asia look like

[amazinglygraceless]

The numbers from Mexico are scary.

Wonder what the numbers from India and SE Asia look like

I'll have to look but I think India is still quite strong and holding.

[Taigatrommel]

I am not surprised by the numbers from any "emerging" markets, be it India, Mexico or others. With more and more aggressively priced el-cheapo Android devices, the more traditional manufacturers are fighting a rather tough fight to keep their market shares in such countries. Since BIS is no longer an argument "pro BB" with BB10 devices, BBRY can't even compete with offering compressed data, so they are head-to-head with the cheap asian Android phones.

Unless the come up with products which can not only compete by what they offer, but also in terms of pricing (a point where the Q5 still fails IMO), the falling numbers won't stop.

Posted via the awesome Blackberry Q10

[JeepBB]

Unless the come up with products which can not only compete by what they offer, but also in terms of pricing (a point where the Q5 still fails IMO), the falling numbers won't stop.

The Lumia 520 "budget" WinPhone sells in the UK for �130, the Q5 (laughably pitched as the budget BB10 phone) sells for three times the price at �350.

BB are going to get slaughtered in the budget market too.

[Taigatrommel]

The Lumia 520 "budget" WinPhone sells in the UK for �130, the Q5 (laughably pitched as the budget BB10 phone) sells for three times the price at �350.

BB are going to get slaughtered in the budget market too.

Yes, I also just checked on Q5 vs. Windows Phone prices:
Around here you'll get the Q5 for roughly 400 euro. Windows Phone doesn't have to "fear" anything. Samsung has their Ativ S sitting at 230 euro, Nokia has the Lumia 820 for 250 euro and their 920 for 350 euro. In addition they have "real" budget devices like the 620 (~180 EUR) or the 520 which goes for 150 Euros and, in addition, they just recently had a big sale where you could buy it for 111 EUR.


The only actual budget, sub-200 EUR devices BBRY has to offer is the Curve 9320 at around 150 and the 9360 at 190 EUR.

Posted via the awesome Blackberry Q10

[dusdal]

I would think that the Q5 and Lumia 520 are legitimately in separate categories, both as tiers and type.

Qwerty and Full touch are often not direct competitors.

Specs:

Processor:
Lumia: 1 G dual
Q5: 1.2 G dual

RAM:
Lumia: 512 MB
Q5: 2 GB

Radio:
Lumia: 3G
Q5: LTE

Connectivity:
Same except Q5 is BT 4.0 and Lumia is BT 3.0
Q5 has NFC, Lumia doesn't

Battery:
Lumia: 1430 mAH with bigger screen
Q5: 2150 mAH

Cameras:
Same except Lumia doesn't appear to have front facing? (please correct this if I'm wrong)


Video:
Lumia: 720p
Q5: 1080p

Screen:
Lumia: 4" @ 235 pi
Q5: 3.1" @ 328 ppi

[sentimentGX4]

I would think that the Q5 and Lumia 520 are legitimately in separate categories, both as tiers and type.

Qwerty and Full touch are often not direct competitors.

I think that's what people on Crackberry try to insist; but, given the choice of touch vs qwerty at the same price point, touch screen overwhelmingly wins. At a lower price point? Qwerty has no chance. This is the phenomenon most strongly observed in developing nations as the price of touchscreen phones have declined.




I would also like to remark that we actually don't know if the Q5 is faster or slower than the Lumia 520.

WIth a dual-core processor clocked at 1.2GHz (a BlackBerry rep confirmed that it is of the Snapdragon variety, but not an S4) and running the latest OS update

Their processors are not directly comparable. Also, you have to check GPU as well!

[JeepBB]

I would think that the Q5 and Lumia 520 are legitimately in separate categories, both as tiers and type.

Qwerty and Full touch are often not direct competitors.

Let's hope for BB's sake that you're right and that the keyboard is something that buyers will want to pay a significant premium for. I guess we'll see in next quarter's results.

Yes, the 520 doesn't have a front camera, the marginally more expensive 620 is perhaps a better comparison, but my point is that the Q5 is far from being a "budget" phone which IMO means that BB has no contender in that important category.

[dusdal]

Could be. The above is still true.

Does the Lumia 520 have a front facing camera?

Edit: I see JeepBB clarified.

[berryaddictnoza]

The market is definitely moving toward having OS platforms tied to their own ecosystem, offering the total package, not just handsets. Apple; iTunes, iCloud, ect. Google; Gmail, Google Docs, Google maps, ect. Microsoft; MS Office infrastructure. BlackBerry has BES and BBM, developing and marketing these services are just as important to Blackberrys survival as moving to a new OS. BBM has so much potential for the small business (messaging, document sharing, ect) yet, they have only marketed it as a personal messaging system.

[Cozz4ever]

Blackberry needs cheaper phones at a faster rate. Nokia has been cutting costs across the board since BB10 was released and it's been working for them. I rather see Blackberry to brake even rather making profits. The positive articles about growth are worth more. Such as in windows phones.

[9Jer99]

Losing eventually to everyone because they do not stand behind their promises.

[cgk]

Th problem with saying that it is aimed at the mid-tier and not the low-end, is that the reviews suggest it is overpriced for that element of the market - it is a mid-tier device that is not seen as mid-tier:

It's the best -- and best value -- BlackBerry you can grab, but that's a very low bar to cross. Unless you're dead set on a BlackBerry, you can spend your money much more wisely elsewhere.

Too expensive.

BlackBerry Q5 Review | Mobile Phones | CNET UK

If you�re determined to buy a BlackBerry, with a keyboard, but don�t want to break the bank for a Q10, buy a Q5. But if you�re simply after a phone for a reasonable price, hunt around and you can easily find a Samsung Galaxy S3 or an iPhone 4S for prices that aren�t too dissimilar.

BlackBerry Q5 review - Telegraph

[cgk]

The flip to all this conversation is that it there is an outside chance that Nokia will sell its handset business, Nokia effectively is WP at this stage, if that happens, WP growth might stall. If it that doesn't happen, the handset business is likely to burn through cash by next year so we might see a change of direction that equally impacts WP.

[anon(5828343)]

Emerging markets were strong for BBRY because of BIS (cheap data) and the Curve (relatively cheaper smartphone). It's hard to see how BB10 (same data plans at iOS/Android) and Z10/Q10 (same price point as iPhone 5/Samsung Galaxy S4) address that market dynamic.

Every piece of evidence that has been published recently points to market saturation at the high end and growth at the lower end.

If the rumors are to be believed, the cheaper iPhone will be out by September/October.

The iPhone 4 and 4s are already available at $450 and $550 respectively.

The Samsung Galaxy S4 Mini has launched at around $550 (�360) sim-free.

The HTC One Mini is rumored to be on the way. Into that market segment, BBRY has launched the Q5 -- whether it can compete against these devices remains to be seen.

But that mid-price range is also facing tough competition from the lower price points.

I've seen Chinese no-name Android devices with excellent specs for $200-$300 and even some of the ultra-cheap Chinese Android devices can go for as low as $75-$99 sim-free. Up until now, the Curve has been "the" smartphone at the $150 range (�105). With the arrival of these cheap and cheerful Chinese devices, time will tell if the Curve can withstand the same competition that the higher end BB devices faced from iPhone and Samsung Galaxy.

[hankj25]

my company went to MobileIron and will be moving to Apple in 2014. 2300 BB's will be replaced starting in January

Sent from my BlackBerry 9930 using Tapatalk

[anon(5828343)]

This is a pretty telling indication of how effective BBRY's marketing efforts have been: 82.6 Percent of U.S. Smartphone Users Unaware BlackBerry 10 is Avaialble | TechnoBuffalo

[sentimentGX4]

This is a pretty telling indication of how effective BBRY's marketing efforts have been: 82.6 Percent of U.S. Smartphone Users Unaware BlackBerry 10 is Avaialble | TechnoBuffalo

I'd say those statistics show marketing is very effective. How many Americans know what the latest Android version is? iOS? Windows Phone? Okay, forget about OS versions. Just ask them what is the model of smartphone they are using. I bet the average Joe couldn't even tell you that! (Seriously, even iPhone users often can't tell you 'I'm using iPhone 4' or 'I'm using iPhone 5')

For ~20% of smartphone users to be able to name the latest Blackberry OS and pin down the exact OS number is very good.

[anon(5828343)]

Just came across this really ugly article:

BlackBerry Fades in Fight to Be No. 3 in Mobile - Businessweek

Wow...grim news.

[greggebhardt]

MicroSoft v.s. Blackberry . . . .

If you had to pick a winner with the most resources to push their product, well there is little thought required.

[tack]

I would think that the Q5 and Lumia 520 are legitimately in separate categories, both as tiers and type.

Qwerty and Full touch are often not direct competitors.

Specs:

Processor:
Lumia: 1 G dual
Q5: 1.2 G dual

RAM:
Lumia: 512 MB
Q5: 2 GB

Radio:
Lumia: 3G
Q5: LTE

Connectivity:
Same except Q5 is BT 4.0 and Lumia is BT 3.0
Q5 has NFC, Lumia doesn't

Battery:
Lumia: 1430 mAH with bigger screen
Q5: 2150 mAH

Cameras:
Same except Lumia doesn't appear to have front facing? (please correct this if I'm wrong)


Video:
Lumia: 720p
Q5: 1080p

Screen:
Lumia: 4" @ 235 pi
Q5: 3.1" @ 328 ppi

I hear you, but I don't think most low end purchasers compare or care about specs. WP8 actually runs well on the Lumia wtih only that much RAM. That is what will matter to a lot of people. I will agree that someone looking for a keyboard may not look at the Lumia.

[dusdal]

MicroSoft v.s. Blackberry . . . .

If you had to pick a winner with the most resources to push their product, well there is little thought required.

I would be curious to see marketing $$ spent per unit sold. I don't think Microsoft's might is performing too well by this metric.

[lnichols]

If you’re determined to buy a BlackBerry, with a keyboard, but don’t want to break the bank for a Q10, buy a Q5. But if you’re simply after a phone for a reasonable price, hunt around and you can easily find a Samsung Galaxy S3 or an iPhone 4S for prices that aren’t too dissimilar.

The sad thing about this statement is that the Z10 has basically the same guts as the Samsung Galaxy S3, but BlackBerry is charging way to much for it with a damaged name brand. It would have been like instead of Ford killing off the Pinto after the gas tank debacle Ford coming out with a new Pinto and slapping a Mustang price tag on it. They need to rebrand the phones (get rid of the BlackBerry name on the handsets all together) and drop the prices to get people to take a legitimate look, especially since the hardware you are putting out is one gen behind everyone else flagship! I can get a GS4 for $50 more than a Z10 right now, or a GS3 for $60 less than a Z10. Sure you make less per unit, but since they aren't moving any at current pricing it is the only legitimate chance they have to try and increase adoption. Getting marketshare numbers up is the only chance they have to survive and get developer support.