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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



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RE: Whats this all aboot?
By retrospooty on 3/23/2012 2:50:53 PM , Rating: 2
"I manage 30-odd phones, mostly BBs..... we are supposed to start migrating to iPhones pretty soon because it is getting VERY hard to justify the value of staying with RIM vs going to the competition."

Same here. We have about 450 emp's. 250 or so with company phones. 100 or so BB's left (used to be 100% BB). For the past year all new phones have been iPhone or Android (whichever the end user prefers). Its not that our BES doesn't work perfectly, its that end users are complaining that they don't want another Blackberry to use. Alot of them were just saying, "forget it, I'll pay for my own". It started with several high level managers not wanting a Blackberry, so exceptions were made, then it was approved for everyone. People just dont want them anymore.

End result: RIM's enterprise dominance is all they had left, but they were so far behind on the OS side its even killing the enterprise holdouts.


RE: Whats this all aboot?
By Omega215D on 3/23/2012 10:17:47 PM , Rating: 2
Which is a shame because I had high hopes for RIM's QNX based phones, assuming they had plans to actually release something in a timely manner.


RE: Whats this all aboot?
By Souka on 3/25/2012 2:02:15 AM , Rating: 2
I used to be a BES (Blackberry Enterprise Server) admin 5years ago...it was uber cool to have such features in a device, and from a admin side...control.

But that job, and my past two...we've ditched the BES and gone with Apple/Android/Windows routes....

BES server's are expensive...licesne cost hurts... with the other big three, I can controll all I need from the EXchange 2007/2010 server for practically free...

My $.02


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