Print 26 comment(s) - last by srf_in_va.. on Mar 27 at 4:34 PM

This is a particularly hard blow to RIM, which is based in Canada and had the No. 1 spot until last year

Apple seems to be encroaching on Research-In-Motion's (RIM) territory by surpassing the telecommunications company's smartphone shipments in Canada.

RIM, which is headquartered in Waterloo, Ontario, Canada, traditionally had many Canadian smartphone customers due to RIM being a Canadian company. In 2008, RIM outsold Apple's iPhone by 5-to-1 in Canada, and in 2010, BlackBerry outsold the iPhone by 500,000.

But this customer loyalty was challenged recently when Apple surpassed RIM for the No. 1 spot in smartphone shipments. Last year, RIM shipped 2.08 million BlackBerrys in Canada while Apple shipped 2.85 million iOS-powered devices.

According to Bloomberg, RIM failed to promote its devices once the iPhone came around. After years of being known for innovative smartphones, the company felt it didn't need to promote anymore. But the iPhone began to take over, offering more apps and a user-friendly experience. BlackBerry soon fell way behind, with Google's Android operating system coupled with Samsung, HTC and Motorola phones being Apple's only true competitor.

"For RIM, in its home market, to lose that No. 1 position to iPhone is strategically important," said Paul Taylor, a fund manager at BMO Harris Private Banking in Toronto. "It does identify, even with a home-country bias, how consumers are responding to the greater functionality of the iPhone."

RIM's sales in Canada fell 23 percent from Q3 2010 to Q3 2011 while U.S. sales dropped 45 percent. RIM's worldwide revenue fell 5.9 percent.

According to Bloomberg analysts, RIM will likely report a fourth-quarter 2011 profit drop of more than half to 82 cents a share. They also expect an 18 percent drop in sales to $4.53 billion.

Apple, on the other hand, more than doubled its profit to $13.1 billion and had a 73 percent rise in revenue to $46.3 billion.

Some of RIM's troubles can likely be attributed to its worldwide blackout last fall, where customers in Europe, the Middle East, Africa, South America, Asia, the United States and Canada lost their BlackBerry services for four days. This outraged many customers who depend on their BlackBerry devices for business as well as personal use. RIM blamed the outage on a system upgrade.

The outage coupled with BlackBerry's lack of apps and user-friendly features has put it behind in the mobile race, but it's not the end for RIM entirely. The mobile company still has some loyal customers in Canada, including the Royal Bank of Canada, the Bank of Nova Scotia, the Bank of Montreal, and Toronto-Dominion Bank, where all continue to issue BlackBerry's to their employees.

Source: Bloomberg

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

last of its kind for Canada.
By Uncle on 3/23/2012 1:55:14 PM , Rating: 2
Last year I wrote that the Americans wanted control of the cell phone market and that the only phone not controlled by them was Rim and with American control of all the main media outlets, its so easy to give a slant their products are better and anyone else's worse. There isn't to many companies left in Canada that isn't under American control. I feel bad that my kids have no idea what real competition is like, when you walked into a dept store a sign greeted you that said "The Customer is always right" Look around people, is that what its like now, hell no, your wrong and the corporations are always right. You can all put your tin foil hats back on.

RE: last of its kind for Canada.
By michael2k on 3/23/2012 3:18:40 PM , Rating: 2
Real competition means companies like RIM can lose to companies like Google, Apple, and Samsung.

By retrospooty on 3/23/2012 4:14:03 PM , Rating: 2
"Last year I wrote that the Americans wanted control of the cell phone market and that the only phone not controlled by them was Rim and with American control of all the main media outlets, its so easy to give a slant their products are better and anyone else's worse."

That has zero to do with it. RIM is dropping like a rock because they were years behind everyone else on the OS front. QNX looks good and will change that for sure, but its still not out on any phones and RIM is running out of time. By the time QNX phones are released, we will be using Android 5 and IOS6, so it cant just be "caught up" to the rest of the world. It needs to be amazing. Has anything RIM done in the past 6-7 years been amazing? No, not even close. They seem to botch everything they touch lately.

"This is from the It's a science website." -- Rush Limbaugh

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki