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BlackBerry yesterday threw down the gauntlet to Apple’s iPhone, outlining an aggressive push into the Californian group’s core consumer market after doubling profits and sales.
After sewing up the corporate market for wireless e-mail devices, Research in Motion (RIM), the company behind the BlackBerry, is forging into the high-end individual market.
Second-quarter results from the company, released to Wall Street late on Thursday, revealed its success. For the first time in the North American market, new subscriptions to the service from individuals outstripped those from companies.
The group said that individual consumer subscribers now account for about 30 per cent of its subscription base, which has broken through the 10 million subscriber mark and sent posttax profits in the three months to September 30 to $287.7 million (£140.8 million) – up from $140.2 million a year ago on sales that more than doubled to $1.37 billion, up from $658.5 million a year ago.
Jim Balsillie, co-chief executive of RIM, said: “This outperformance was driven by the strong product cycle we are in the midst of as well as the diversification of our base across multiple geographies and market segments.”
The move to shed its reputation as a work-only tool and appeal to what it has dubbed the “prosumer” market of affluent, style-conscious consumers, was helped by the release of more BlackBerry models, including the Pearl, which is modelled like a traditional mobile handset, and the Curve.
The Ontario-based group has further tailored its products to the consumer by launching them in an array of colours and adding services such as music players, memory cards and cameras. They have long been standard on mobile phones but BlackBerry had regarded them as gimmicks.
The BlackBerry has been given a further boost by photographs of celebrities including Victoria Beckham and Britney Spears using them.
However, the strongest sign of its intentions came with the introduction of new software, BlackBerry Unite, which allows up to five people to share pictures, music and documents. The software will be available free to subscribers.
Ben Wood, of CCS Insight, the telecoms research group, described Unite as the “boldset step so far towards making the BlackBerry a consumer product”.
In addition, rumours have been sweeping the internet that RIM is preparing to launch a BlackBerry with a touch-screen – a key feature of Apple’s iPhone.
The move into this area pitches RIM in direct competition with “converged” device makers including the iPhone – a combined mobile handset, iPod music player and web browser.
RIM could also seek to exploit the alleged weaknesses of the iPhone. Critics in the UK, where it was recently unveiled ahead of a launch next month, complained that it does not offer 3G speeds, making its e-mail and internet capabilities less efficient.
In a further blow for Apple, analysts at Goldman Sachs said RIM has also hinted at relationships with Google and major music companies.
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I had problems setting up my Blackberry but these were all to do with my Service Provider, nothing to do with Blackberry whatsoever.
Eventually my Service Provider got its act together and I couldn't be happier. My Blackberry Pearl is probably the best mobile I have ever owned.
The iPhone may be right for some people, but I would rather keep my separate 80GB iPod for music and my Blackberry for communications. Convergence isn't always a good idea.
Duncan, London,
I am a self-employed architect who recently purchased a blackberry curve in Spain Europe. I cannot believe how complicated it is to set up an e-mail account. The service provider says I cannot have an e-mail account as I am not a company, although they are charging me the tariff for e-mail. I contacted Blackberry, who were most unhelpful. The blackberry web site promotes you can set up an e-mail account in 3 easy steps, yet when you try, it simply tells you to contact your service provider, you contact your service provider and they tell you it is not possible to connect for e-mails. If blackberry are to become the phone to have, they need to sort out their act, train their service providers, take a long look at their web site and its many conflicting pages. My advice to anyone considering a blackberry, make sure its set up for e-mails before you leave to shop, because you are not going to get much help from blackberry after. Brian Tones
Brian Tones, Cordoba, Spain
RIMM's results sound impressive until you realise that despite being available in over 120 countries served by 300 carriers, they only added an additional 1.45 million Blackberry users (new subscribers) in the last quarter. Apple has sold a similar number of iPhones in the same time-frame despite only being available from one carrier in one country.
This is also despite RIMM having multiple models including the much cheaper, consumer-oriented Pearl.
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I think RIMM, like all the other phone manufacturers, is quaking in its boots at the iPhone phenomenon.
-Mart
Martin Hill, Perth, Australia
Of course you can use the Balackberry for email, this is it's speciality, you only need to set up an 'instant email' account with your provider which may cost a small additional charge each month and then you can have a blackberry email address to forward your emails to and your blackberry will r eceive them. if you have any problem with this I suggest changing to a different provider.
simon harris, London,
Blackberry's just work. So long as you get your mobile phone account set up correctly, your network will do this, Blackberrys just work. I was given mine when I had little knowledge of them and since then have found RIM and it's products to be fantastic. Simple to run with great battery life.
Unlike any other moblie device the Blackberry really does one thing very well rather then trying to be all things to all men. The iphone is a hot product, but lacks some average functions(SMS forwarding, camera settings, MMS) of a phone while offering amazing mobile web. I'm sure Iphone 2 will improve on this.
Andy, London, GB
I have struggled with my 'crackberry' for years now. Recently got an iPhone. All I can say is the iPhone is like a dream come true. It's a wonderful device that the blackberry just can't in any way match. The blackberry is a geek toy that should be thrown in the trash.
Burt Pickering, Naples, Florida