The smartphone industry is a fast-moving, highly competitive industry. Gains in market share are created through thin marginal differences between phones that are quickly eclipsed by other companies. This summer’s 3G innovation becomes “too old, too slow” as this month’s 4G phone makes headlines. In order to successfully compete, a smart phone maker must be able to keep up with its competition and innovate to snatch small sections of market share. Research in Motion (RIM), currently the largest smartphone maker in terms of market share with over 50 million users worldwide and 12 million units shipped last quarter, managed to carve out a section of the smart phone market for itself during the early- to mid-2000s.
Research in Motion
By Benjawan Thanachotipan, Jesse Randall, Peter Graham, Sriram Sridharan, Timothy Webb and Tyler McElhaney
Research in Motion [RIMM: $60.81], known for its private data security and e-mail addicts, may be on the verge of disappearing. Drawing this conclusion may seem strange in light of its recent stock price increases, its 27 percent market share, and the pending release of its iPad competitor, the Playbook. However, RIM’s demise isn’t apparent on the surface. Its misaligned long-term strategy is what will ultimately bring RIM to its knees.
Technology and innovation in the smart phone industry have developed at an extremely fast pace. This has caused consumers to upgrade their devices on an annual basis if not sooner. As these devices increasingly become an extension of the life of today’s consumers, supplying innovative, advanced devices is more important than ever. This shifting consumer preference towards iPhone and Android devices (even in the business user segment) is causing RIM to lose market share at an exponential rate.