Blackberry (BB) has been losing out market share to competitors for a while now and may be making a desperate move to keep its customers; the smartphone manufacturer might introduce its BlackBerry messenger - likely its most valuable service-- to its competitors’ phones.
RIM might be offering its Blackberry messenger (BBM) service on phones like Android, iOS and Windows Phone 7. If the move goes through, everyone who defected from BB and lost touch with their BBM contacts since they could not use the service will be back, just from a different device and phone.
Due to so many people shifting from BB, RIMs network of BBM connected people had been becoming less meaningful. Think about it, if you had bought a BB just to be connected to your other friends on BBM, would you stay if those friends left for, say, Apple’s iPhone?
The most likely explanation for this is that RIM realised that its Enterprise services were not sufficient reason for users to stick with Blackberry phones. With this move, RIM has taken a gamble. It will effectively be prioritising its ecosystem of services - only BBM at this point - over its hardware and operating system.
This makes sense in many ways, since it probably earns the major portion of revenues from the monthly payment plans that it charges for its Enterprise services. Monetary remuneration from markup on the phone hardware and software is likely to be a tip of the iceberg.
Other services had been creeping up on Blackberry’s BBM. Cross platform IM applications which mimicked BBM but were available on all platforms; even Blackberry were being used by people whose friends migrated to other smartphones. The choice was simple, expand platforms or the cross platform IM market will be cornered by someone more progressive. By choosing to adapt and assimilate, RIM has ensured its dominance over this cyber space. Its competitors such as Whats App, and Kik; will likely be abandoned by the wayside for the real deal. Because BBM’s network at this point outguns its clones’ networks by far.
According to reports, RIM has not yet finalised details surrounding timing or pricing. But there are rumours that the company might make the software free to all users. However, reports are saying that strategies are still being developed and RIM may end up charging users a one-time fee or even a recurring fee for access to its BBM service on third-party platforms.
But there might be a small flaw in their plan, what if this move completely takes away any incentive for users to buy Blackberry at all. What happens if everyone who was still sticking to Blackberry because they found that they couldn’t do without BBM realises that they can try the vaunted new phones without losing out on their mobile social life via BBM. RIM may end up with a lot of unsold BBs.
But the chances of the above happening are small. A lot of Blackberry users stick to the device for a myriad of reasons. The reasons might be trivial, but so is life. Some users will stick around because they are used to it. Some will stick around because they are used to the horizontal qwerty instead of the much more ergonomic slider qwerty’s offered in modern smartphones. Some will stick with the apocryphal device just because they can’t get themselves used to typing on a touchscreen.
Whatever happens, this has been one of the few good decisions RIM has made since real competition surfaced. As its ecosystem of services on other smartphones might be just as profitable for the company and its enterprise servers.
Published in The Express Tribune, March 7th, 2011.
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