Richard Martin Blog: Media Hop Off RIM Bandwagon

The big media outlets have, finally, cottoned on to what we at VON/xchange have been saying for months: The future of RIM is looking grim.

BlackBerry-maker Research in Motion faces bleak prospects, wrote Reuters Breakingviews in a column last Friday that was picked up today by The New York Times.

“Apple said last week that more than 80 percent of the Fortune 100 companies were testing or deploying its iPhone. Meanwhile, phones using Google's Android operating system appear to be making inroads, too. That spells trouble for R.I.M."

Businesses, particularly IT directors, “used to be happy with handsets that served up e-mail reliably, promptly and securely – something the BlackBerry does very well. “Now, though, Android and Apple handsets adequately handle e-mail, while also doing much more."

This follows a Barron’s column (by my former colleague Eric Savitz) from June 26, which noted that RIM “is suffering from the transformation of the mobile-phone business into a far more competitive market, where consumer branding means more than a cozy relationship with IT managers."

For the BlackBerry to thrive again, RIM “must find a way to generate its own legion of fans in the consumer market," Savitz added, “among buyers who are more focused on apps and the Web than on e-mail."

These columns both followed my April 1 story headlined, "As BlackBerry Loses Flavor, RIM Outlook Dims."

“A question that would have seemed inconceivable only a year ago now seems highly pertinent," I wrote then. “Will the BlackBerry, once a must-have workhorse and status symbol for millions of corporate executives (and wannabes), be able to survive in the new era of the iPhone, Android, and other deluxe smartphones?"

RIM’s share price has taken a beating in recent months, dropping by 26 percent since late March. The latest version of the BlackBerry OS is due to appear in September. It may not be enough to reverse the failing fortunes of the company that pioneered the smartphone category.