RIM (RIMM) comes to market with a superior BlackBerry

12 05 2008

RIM (RIMM) comes to market with a superior BlackBerry

Posted by: in Companies Competitive Strategy

Filed under: Launches, Consumer experience, Competitive strategy, Apple Inc (AAPL), Research in Motion (RIMM)

Research In Motion (NASDAQ:RIMM) can’t afford to lose any market share to the Apple (NASDAQ:AAPL) iPhone. Apple has other businesses. RIM has only smartphones.

So as not to be bested RIM has a new BlackBerry. According to The Wall Street Journal, the device, called Bold “runs on high-speed 3G wireless networks that carriers are rolling out to handle media-rich features.” It also has multi-media features for downloading music.

The launch misses a critical factor in businesses smartphone devices. Enterprise users probably have tiny interests in BlackBerry beyond its e-mail features. The fact that the phone runs on faster 3G networks added to the function. Putting multi-media features into the product does not. It simply adds cost. The 3G capability will also help sales outside the US where 3G is more widely deployed.

RIM has a problem. While it is not likely the BlackBerry will ever become a music player, the new 3G iPhone might well attract business users with superior e-mail, calendar, and web-searching features. The iPhone also sell well because it is think about “next-generation” with its touch pad. It also benefits from the “halo” effect from the company’s iPod and iTunes products.

Apple can add e-mail to the iPhone and have a device which can cut across business and consumer users. It is not clear that BlackBerry can ever get beyond its core enterprise market.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.