iPhone vs Blackberry

[Rockslinger]

BMO did an interesting analysis of iPhone vs Blackberry and concluded that Blackberry has a $500 price advantage. Now $500 is peanuts to rich North Americans like you and you but $500 to 8billion East Indians and 12billion Chinese is a huge chunk of their disposable income and that is where Blackberry sales will kick iPhone's butt.

 

[danibbler]

8 billion East Indians? 12 billion Chinese? Dude, there's only about 6 billion people on this planet.

Anyways, neither RIM nor Apple are targeting the destitute masses with their products and services.

 

[westendman]

8 billion East Indians? 12 billion Chinese? Dude, there's only about 6 billion people on this planet.

Anyways, neither RIM nor Apple are targeting the destitute masses with their products and services.

Doesn't matter anyhow, Googles Android has already become the #1 smartphone platform in the USA. Just a matter of time (18 months max) before it is #1 world wide.

 

[Cobster]

Jobs must be livid with Android. Lol

 

[Rockslinger]

Anyways, neither RIM nor Apple are targeting the destitute masses with their products and services.

India and the PRC have or will soon have a larger middle class than the U.S. Of course, their middle class doesn't have as much money as the U.S. middle class because Indian and Chinese banks aren't as stupid as U.S. banks.

 

[onthebottom]

I think RIM is screwed, they can't keep up on the UI, ecosystem or HW, their competitive advantage of push Corp mail is history..... I see it dying a slow death, like blockbuster...

OTB

 

[nova5]

I think RIM is screwed, they can't keep up on the UI, ecosystem or HW, their competitive advantage of push Corp mail is history..... I see it dying a slow death, like blockbuster... OTB

Totally agree here! I definitely see RIM as a potential takeover target in the future. One of the central questions you have to ask yourself is the following: where does future growth for RIM come from? Well certainly not from the consumers’ sector and with respect to the business sector their market share is slowly being chipped away.

 

[fmahovalich]

Does RIM not have its OWN market.

I mean..do they not have a unique platform and a unique operating system that is BEST suited to the business community?

Anyone I talk to sees Blackberry suited for the business rugged world...while I phone sells more to younger, gadgety minded people.

TWO separate markets that can co-exist...no?

 

[Rockslinger]

Well certainly not from the consumers’ sector and with respect to the business sector their market share is slowly being chipped away.

You guys are not listening. According to BMO, the Blackberry has a $500 price advantage over the iPhone. $500 is nothing to you but it is a fortune to a consumer in the PRC and India. Besides, the guys at RIM are pretty smart, I'm sure they will keep re-inventing themselves to not only survive but prosper.

 

[zz000ter]

BMO did an interesting analysis of iPhone vs Blackberry and concluded ...

Do you have a link to the report?
How does Blackberry have a $500 price advantage? Is this for hardware or services?

RIM is best of breed in the secure business environment. Noone will dethrone them.
But that market is saturated - the consumer market is up for grabs and I think that Android will win.

 

[Rockslinger]

Do you have a link to the report?
How does Blackberry have a $500 price advantage? Is this for hardware or services?

This was mentioned on BNN. I think BMO compared a 2 year contract and the Blackberry was $500 cheaper than the iPhone. Hence, BMO concluded that RIM will corner the 20 billion people market in the PRC and India because $500 is more important to an EI than some fancy iPhone crap he doesn't really need.

 

[zz000ter]

China has 1.3 billion people
India has 1.2 billion people

RIM and Apple do not set the service price. Service price is set by the carriers.
Here in Canada we are getting raped on wireless data costs.
It is not Apple or RIM raping us but Bell + Rogers + Telus raping us.

Wireless data costs are much lower in other parts of the world.

Why would people spend more on iPhone than on RIM? Well the Blackberries are not really "fun consumer devices". They are optimized for messaging. the iPhone on the other hand with the larger screen and the more open platform and ease to access Internet requires services where more data is required. A Blackberry user might need 500 megs per month while an iPhone user might need 5 gigs per month.

Note: RIM does get a portion of the service cost for BIS and BES service - but BIS and BES are services that RIM provides. RIM does not make money off the other wireless data services the customer uses.

 

[Rockslinger]

China has 1.3 billion people
India has 1.2 billion people.

You are talking about to-day. I am speaking of the future. If I ever get my hands on that BMO analysis, I'll send it over.

 

[zz000ter]

I look forward to seeing the report. Thanks
It will be many many decades before China + India hit 20 billion
I don't know if the planet can sustain that many people

 

[Cobster]

Ya right, China & India will probably hit 20 billion by tomorrow afternoon at the rates they're going. :\

 

[Rockslinger]

I look forward to seeing the report. Thanks

I had problems trying to post the link. October 19, 2010 report by Tim Long of BMO Capital Markets. Google it.

 

[danibbler]

Rockslinger:

A. Stop saying 20 billion Chinese and Indians. It won't happen.
B. The most popular phones in India right now are neither iPhone, RIM nor Android. The market there is being taken over by simple phones with very simple apps.
C. I also believe that RIM is in deep trouble. Enterprises are being pulled by their users into using the iPhone.
D. I did a Google search on this report, just news articles on it with no mention of the $500 price difference, not the actual report itself.

 

[danibbler]

According to a Globe and Mail article dated May 13, citing Gov't of India stats, there are now 500 million wireless subscribers in India. By 2012, there will be 40% penetration with an additional 160 million connections.

 

[Rockslinger]

there are now 500 million wireless subscribers in India. By 2012, there will be 40% penetration with an additional 160 million connections.

That is more subscribers than people in the U.S. and Canada combined.

 

[danibbler]

Yeah, but it's nowhere near your 8 billion East Indians is it?