Tech Time: The Decline of RIM

Posted: January 9, 2012 in Business

The Decline of RIM
With the release of the iPhone and the more customizable Android OS devices, RIM has been on the decline ever since. In my opinion RIM has not been sufficient in giving consumers what they desire in a smartphone. The consumer base wants “Super Phones” and luxurious application stores. RIM is certainly not delivering that.
One of RIM’s most powerful phones, the Blackberry Bold 9930 only sports a 1.2 Gigahertz processor and has 768 MB of Ram. It has a mediocre screen resolution and a decent 5 MP camera that does record in 720P HD. RIM’s Blackberry 7 OS is also lacking in my opinion in terms of feature.
Current phones such as the Galaxy S II feature a 4.3 AMOLED display, 8 MP camera and a 1.2 GHz dual-core chipset. Consumers want blazing fast phones to get information as quickly as possible. Abundant App Stores are also required, because the majority want apps to quickly access their favorite social networks, games and personal data.
In 2008 the revenue of RIM for the fiscal fourth quarter was 1.88 billion dollars. Handheld devices held 81% of the 1.88 billion dollars. This is the time period where Apple and Android were starting to poke their heads into the mobile markets. The revenue for the 2011 third fiscal quarter was only 265 million. With these numbers you can see their drop in quarterly revenue even though this number doesn’t account for just phone sales. Now that Apple and Android are more prominent in the market RIM is having a hard time with sales.
Visually, the sales loss is becoming more apparent. As a gadget lover I pay attention to what phones are being used out in the world. I am seeing less BlackBerrys everyday being used by consumers. When I do see one I can’t help ask myself “WHY?”

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