RIM Loses No. 1 Canadian Smartphone Shipments Spot to Apple for 2011
March 23, 2012 12:43 PM
comment(s) - last by
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
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.
, 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.
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RE: last of its kind for Canada.
3/23/2012 4:14:03 PM
"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.
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch
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