If two years ago they made BBM an app for iOS, Android, WinMo/WinPho, and WebOS as they came out, and charged $2.99 a month to have a PIN, they would have been set, since a whole lot of people would consider it worth the extra $3 a month to talk to everyone else with a Blackberry (along with everyone else who thought BBM was worth $3 a month). It isn't much, but it would have gotten RIM a much better place to stand in that they could have potentially had recurring revenue from everyone who bought a competing device, while still providing incentive to own a Blackberry (BBM being free on that platform).
There are a couple of competing programs that mimic BBM - PingChat, Kik Messenger, and LiveProfile come to mind, but despite being free, the problem is that enough people need to use them in order to justify their existence. There are pockets here and there, and people like myself who run all of them just in case, but generally SMS is simply the lowest common denominator. BBM has a solid install base that they could capitalize on, but I think iMessenger makes it impractical for them to charge for it anymore. Oh well, another opportunity lost.
Oh...and the Torch needs to come to Verizon =)
Joey
Research in Motion’s multi-front war continues and now BlackBerry Messenger (BBM)—one of the company’s most defensible positions in mobile—is under fire from the likes of Apple.
Following Apple’s introduction of its WWDC goodies—Mac OS X Lion, iOS 5 and iCloud—much of the sentiment swirling around RIM went from bad to worse. Why? Apple touted its iMessage, a system that allows anyone with an iPad, iPhone or iPod touch send unlimited free text messages to another iOS device. Apple’s iMessage is a direct assault on BBM, which is arguably RIM’s most marketable item.
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Jefferies analyst Peter Misek said:
The two mainstays of RIM’s sales have been corporate email users and consumer BBM (Blackberry Messenger) users. While Apple lacks RIM’s NOC/node infrastructure that allows for BBMing without a data plan with some carriers, iMessage otherwise is a direct competitor. The launch of a low-cost iPhone in the Fall targeted at prepaid and emerging markets will only further undermine RIM.
Wharton marketing professors have noted that RIM’s BBM could be heavily marketed and should be the company’s defining sales pitch. Instead, RIM suffers from Apple envy and doesn’t play up BBM nearly enough. To its credit, RIM did outline plans to open BBM up to iOS and Android recently.
Should BBM falter, RIM will have yet another big hole to plug. Raymond James analyst Steven Li previewed RIM’s first quarter, which is already known to be weak, and called it a form of water torture. Li argued that RIM could be Nokia-ed—caught in the crosshairs of the competition without new products.
Li said RIM’s product portfolio has aged another three months and new devices may not appear until September. That timeline would mean RIM will miss the back-to-school selling season.
Add it up and RIM faces the following challenges:
- Getting through 2011 until its QNX-based “superphones” allegedly save the day in 2012.
- Defending the enterprise as consumerization takes hold.
- Fending off Android as well as Apple’s iOS.
- Keeping margins and service revenue humming as companies look at management tools other than BlackBerry Enterprise Server.
- Making a dent in the tablet market.
- And now defending BBM from Apple.
Nevertheless, RIM co-CEO Jim Balsillie on June 16 is likely to be as optimistic as ever even as the company reports weaker-than-expected first quarter results. What’s unclear is whether the Balsillie show will have much of a believability factor.
RIM updates PlayBook with BBM, Video Chat, and Home screen bookmark shortcuts
