Research in Motion (RIMM) is stepping up in order to expand their market share while competing with their rival, iPhone from Apple, to maintain its preference among high-end users.The makers of BlackBerry are expanding their market from high-end business users to consumers. BlackBerry has always been very strong in the commercial market, mainly because of its ability to help people access their e-mail, contacts, and calendars. After Apple’s iPhone Division introduced a handset version design to appeal to the business users, Research in Motion is responding to this by announcing new features to appeal to a broader group of consumers.
This new rivalry could be seen as destructive for both companies, but it is rather beneficial. Since both companies are getting into each other markets’ niche, this will benefit consumers. Both companies are investing more money to develop new features and may even lower prices to increase their sales. This may expand the already growing market for smart phones and with more sales the wealth of the firms will increase and consequently they will continue investing; a virtuous cycle of sorts. This is a win/win situation for the both the firms and consumers. For example, RIMM plans to announce new features for their new cell phone that allows clients to control their TiVo and have access to their MySpace network. So, do not be surprised if one of these days you can watch your favorite TV program, be in contact with your friend via e-mail and manage your business all at once with your smart phone.
I have worked with both the Blackberry and the IPhone, due to its advantages for me, I prefer the IPhone. However, the Blackberry is coming out with much improved designs and uses for their phones making them a much tougher competitor vs. IPhone. I never had thought about the price. Yet if the blackberry lowers their prices, they are going to have a much wider range of customers than IPhone. Even though IPhone has lowered prices, it’s still more expensive than Blackberry. I think that even within the same segment, they have different subgroups who buy their products. The blackberry is much more of a business phone and appeals to many people in high-end business, while IPhone appeals more to the entertainment side of costumers. It is a close call for both companies, yet I do believe that their rivalry can be of good to them both with different target groups and different market strategies. Maybe one day they could join their innovations and make a phone that would wow the imagination.One could also argue the fact that when it comes to iPhone vs. Blackberry the question is not which one appeals to business and which one appeals to regular consumers, but its marketing. Both products have almost the same features like email, speed and ergonomic looks. While Blackberry has always focused on a business type consumer, Apple found a way to appeal to both business and regular consumers. iPhone is a better marketed product. The iPhone can most definitely be used for business purposes As a matter of fact, that’s the first reason it came out. Now with the new features like the application store, it can be used as more of an everyday phone. Granted, Blackberry isn’t too far off the competition, now with their soon to be launched “Blackberry Storm” they will be appealing to regular consumers. Blackberry is getting better at marketing to a bigger audience but iPhone is still way ahead from purely a marketing and general population appeal point of view.
by Mel Joelle
