RIP, RIM

If you've been reading this site for a long time, you know that it began with the single-minded objective of covering Microsoft's late 1990's merging of its consumer (9x) and business (NT) versions of Windows into a product that eventually became Windows 2000. Almost immediately, however, my coverage expanded, first to other versions of Windows (like Millennium), then to other related Microsoft platforms and products (Office, Windows Live, and so on), and then eventually to include products that compete with and/or complement Windows, including Apple devices, Google services, and the like.

This makes sense to me because Windows doesn't exist on its own. No one buys a PC to use Windows, they buy a PC because of the ubiquitous and pervasive nature of its interoperability and compatibility with applications and games, hardware devices and add-ons, online services, and so on. And in that sense, Windows doesn't stand alone. It's the center of most people's computing experiences, and while that may or may not change as our world evolves, that's certainly still the case today.

Looking at mobile devices in general, most people have so far had two types of interactions with this kind of hardware. They've used the devices out in the world, by themselves, and they've used them in tandem with Windows, to sync contacts, calendars, and other data, to copy music and other content, to download photos, and the like. This, too, is changing, and the most recent devices from Apple, Google, and even Microsoft depend on the PC less and less. In extreme cases--iOS 5, for example--a Windows-based PC isn't required at all. Things evolve.

So what does any of this have to do with the subject of this post? Well, it's sort of a long way of describing how I view my own site, and how I view how I determine which products to review and cover. And one product I've routinely ignored over the years, aside from the occasional news story, is the Blackberry family of mobile handsets. And while I've questioned whether this was the right move from time to time, every time I've explored Blackberry and the company that makes these products, I've been repelled. I've just never liked any of it, and even when they were successful I never understood the hold they had over governments, businesses, and even some users.

And now RIM is dead. I think it's time for us all to simply recognize this fact and move on.

RIM didn't declare bankruptcy or exit the market for smart phones or anything. What they did announce, however, was that their next generation mobile OS, now called Blackberry 10, won't ship until the end of 2012, a full year from now. This comes on the heels of one of the worst years I've ever seen any tech company experience, and I'd remind you that this happened during a time in which both Yahoo and HP were stumbling around blindly, looking generally foolish and without aim. RIM makes both of those companies look like huge successes by comparison.

How pathetic is RIM? 

Two years ago, the Blackberry accounted for almost 50 percent of the US market for smart phones. Today, it controls just 9 percent.

This past year, RIM introduced a tablet device that didn't even have an email application. It's sold so poorly that the company took a $485 million write-down to account for a $300 price reduction this quarter. Oh, and they still haven't updated it to add an email application. Seriously.

This year, RIM was going to consolidate its future OS strategy around QNX. Which it renamed to BBX ... without even checking to find out whether that name was being used. Which it was. By a smart phone software development company. Which immediately sued them. And won.

RIM has introduced almost 40 new smart phone models since Apple released the first iPhone about 4 years ago, and even Blackberry experts have a hard time figuring out the differences, since the model numbers are ridiculous (quick: What's the difference between a BlackBerry Torch 9850 and 9860?) and there are too many kinds of phones (touch screens, hardware keyboard, touch screens and hardware keyboard, sliders, and more, oh my). 

(A RIM executive actually said this week that the company didn't know how many Blackberry models it currently sells. Good stuff.)

Heading into 2011, Blackberry had two remaining core differentiators: Security and its proprietary network. With other devices gaining EAS [Exchange ActiveSync] capabilities, the former is no longer a big deal and even governments are switching to Android phones and iPhones. And with the latter suffering a catastrophic failure back in October, well, you get the idea. So RIM is modifying its unnecessary and expensive BES software to manage other devices types, like Android phones and iPhones. Another waste of time.

Sigh.

RIM stands as a warning for any tech industry Goliath that once owned a market only to watch it get snatched away by smaller, faster moving rivals with better products and better strategies. This is a fate that could befall any company--Microsoft, Apple, Google, whatever. Though I have a hard time imagining any of them being as poorly run as is RIM.

RIM is dead. I'm glad I never wasted time covering this junk.

Discuss this Article 17

Waethorn
on Dec 17, 2011
Anybody that has had to purchase and deploy BES knows that it is a huge money pit, and the only side that benefits is RIM. They could've avoided all of this disastrous turn of events by just licensing ActiveSync years ago and putting their focus back into their phone hardware and OS - the things that people using and buying the phones really care about.
rob_kellington
on Dec 17, 2011
Don't the same arguments about RIM apply to MS in mobile? 1) Yes, RIM's OS won't ship until end of 2012, a year from now. But when will MS ship Mobile 8? A year from now? (Both just shipped major upgrades in 2H2011). 2) RIMs tablet was terrible. But MS has released how many terrible tablets previously? 3) BlackBerry phone comment - how does that compare to the number of Windows Phones and the quality and differentiating factors? Finally, In 2006, both RIM and WindowsMobile were tied with 37% share. 5 Years later, RIM is 10% (sad), but MS is 5% (dead). goo.gl/RQiH7 I guess 2012 will be important to both RIM and MS......
pthurrott
on Dec 17, 2011
No, these aren't the same in the slightest. RIM makes one thing: Mobile devices. If that fails, the company goes away. Microsoft makes many products and its most successful products--Windows, Server, Office, Xbox--can subsidize losses in other areas, letting it invest in the future.
Texrat
on Dec 17, 2011
Have to agree with Paul on both RIM's poor prospects and the advantage of Microsoft's diversity. Heck, I would not be surprised at all to see MS buy all or part of RIM next year. Then there's the question of strategic partner Nokia...
Texrat
on Dec 17, 2011
Have to agree with Paul on both RIM's poor prospects and the advantage of Microsoft's diversity. Heck, I would not be surprised at all to see MS buy all or part of RIM next year. Then there's the question of strategic partner Nokia...
Waethorn
on Dec 17, 2011
"MS has released how many terrible tablets previously?" None, but then Microsoft doesn't make tablets. And if you want the consensus on Tablet PC customer satisfaction, those that can afford them like them a lot. Unfortunately that's all you can really say about them though, since the cost puts them out of the range of the masses. The people that know that they exist have a reason to use pen input (and yes, it is still a valid input method - if you don't think so, look at the popularity of Nintendo for a reason why you are wrong).
Sylvala
on Dec 17, 2011
poor rim. It's not the piece of junk your saying. Point of view from IT It was good for controling the device. Like policy for password, restricted installation of app, etc. If you lost the device we could erase it from my desktop. You could do that with android and iphone without involving a third parties in it? The problem is, like MS is facing, is the mangment is wrong. No vision.
chuckb84
on Dec 17, 2011
"RIM makes one thing: Mobile devices. If that fails, the company goes away. Microsoft makes many products and its most successful products--Windows, Server, Office, Xbox--can subsidize losses in other areas, letting it invest in the future." Exactly right (except that Xbox is still a net loss over its lifetime), and why MS has a chance in mobile whereas BB is in its death rattle. I never got the attraction of the Blackberry either. When our workplace allowed a choice of BB or iPhone, the split went 50/50 immediately and now stands at about 80/20 in favor of iPhone. The BB holdouts stayed for two main things, physical keyboard and BB messaging. Apple has duplicated BB messaging with iMessage and I guess people are getting used to the soft keyboard and see that as a reasonable tradeoff for the flexibility of the iPhone. Android and/or Windows Phone can get those users who insist on a real button keyboard. Windows Phone can now settle into 3rd place as RIM finishes imploding, but it's gonna be a distant 3rd for the foreseeable future.
roncerr
on Dec 17, 2011
EAS? Have you tried Googling that? Doesn't help.
pthurrott
on Dec 18, 2011
EAS = Exchange ActiveSync
BXP
on Dec 18, 2011
Sometimes the calls to oust CEOs are rash; other times they are warranted. This is one of those times it's warranted. The co-CEO thing isn't working, but nominating one or the other as sole CEO wouldn't be an improvement. While Nokia was in a similar to RIM, it feels like they were able to execute on a new strategy much more quickly, getting a Windows Phone out (albeit not globally) before the end of 2011.
psanchez9788
on Dec 19, 2011
We have used BES Enterprise server for years. We have seen an 80% drop in users migrating to Android and iPhone. Active Sync improvemnents made that possible but the first Windows phones to use that tech were a nightmare to get working on a typical Exchange Server. But with BES it was simple and to coin a phrase "it just worked". The sheer arrogance of a company releasing a tablet device without an email client is mind blowing to me. EMAIL IS WHAT RIM DOES! How can they leave that out?? I hate to say it but Paul is right, RIP, RIM.
yoshipod (not verified)
on Dec 19, 2011
"and there are too many kinds of phones (touch screens, hardware keyboard, touch screens and hardware keyboard, sliders, and more, oh my). " One could almost mistake that description for Android or Windows Phone 7. But I guess in those cases, having dozens of choices is a good thing, but with a Blackberry, its not. I get the whole choice is great, but too much choice is overwhelming. What the problem seems to be is when that is applied.
chuckb84
on Dec 20, 2011
This is a good synopsis of the "choice" issue. You might argue Apple doesn't have enough variety, but I don't see how you can argue against Samsung having a confusing and redundant product line. http://cryptochaos.com/apple-vs-samsungs-product-lines
pthurrott
on Dec 20, 2011
Did someone argue that Samsung didn't have "a confusing and redundant product line?" I don't see that. In fact, you're the only one that's ever mentioned Samsung. WTF does this have to do with RIM? Nothing.
yoshipod (not verified)
on Dec 20, 2011
The issue is not about Samsung, that was an example. Its about your characterizing the number of models of Blackberries as being too many, yet I have not heard you say the same about Windows Phone 7 devices. Somehow, having choice on that platform is great, but on the Blackberry, its not. A quick scan of the blackberry website lists 14 models, while a visit to the Windows Phone 7 web site shows 12 models. Do those extra two models make it that more confusing? You wrote "What's the difference between a BlackBerry Torch 9850 and 9860?" I could just as easily say "What's the difference between a Nokia Lumia 710 and 800?" I agree with you that there are probably too many models. The question becomes, why don't you also apply that to WP7? You do it to Android, you do it Blackberry, you even did it to the iPad, saying, "There are just too many product versions."
BostonTechGuy
on Dec 20, 2011
I think you are being way to harsh on Blackberry as a product. Everyone wants to point figures at RIM for all the mistakes they made without clearly thinking about it. RIM has made many mistakes this year, but not the ones you think. Before I clear up a lot of misinformation there is one point I do want to make, RIM is in the coffin I agree. When the last nail hits who knows.. First lets start with Blackberry Enterprise Server. Its the most robust, secure mobile platform out there. Period. Thats why it had 50% of the market share. Businesses and Government used BES for all the control features. So issue number one: iPhones, Android and Win Phone 7 are consumer products. Period, no argument. Yes you can use them for business, but thats not their base. For RIM to try to get BES to work for these platforms is a good business choice. Companies can now leverage existing iPhone, Android and Win Phone 7 users with existing BES servers and security models. Next is the Playbook. RIM has always marketed to its base. Not to the average user. It was a brilliant strategy. If you were going to buy a Playbook, most likely you have a Blackberry. Then have the tablet do everything through the Blackberry; internet, email, calendar etc etc. Now what killed RIM, all the reviews that compared it the iPAD. This is not fair, thats not who the Playbook was marketed towards. Playbook was never intended by design to be a stand alone device. Unfortunately that's what the media did and killed it. Now the media is not alone in killing the Playbook, RIM has plenty of its own blame. Why use a product when the base doesn't work (base being Blackberry/RIM network). Last is models. This has always been an odd conversation. RIM has always tried to cater to different styles while keeping the same OS. This is not new, they have been doing it for years. Today's market really doesn't fit that way of doing business. Reason again Consumerization of IT. Thanks, BostonTechGuy

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