RIM makes gains in consumer market

Research In Motion reported better Q2 growth in its non-enterprise business than enterprise market.

In its second quarter, Research In Motion reported better growth in its non-enterprise business than in the enterprise market, as the company continues to push into the consumer space.

While announcing earnings, the company pointed to a gaggle of new products targeted at consumers and small business, including two smartphones and free mobile collaboration software, BlackBerry Unite, that provides mobile access to shared calendars, pictures, music, and documents on desktops to up to five users.

The company reported revenue for its quarter ending September 1 of $1.37 billion, up 27 per cent year-over-year. It reported net income of $287.7 million, or $0.50 per share, up from $140.2 million and $0.25 per share, posted last year.

RIM added 1.45 million subscriber accounts and shipped three million wireless units during the quarter, and reached a milestone of 20 million devices shipped and 10 million subscriber accounts.

One growth factor for RIM was the diversification of its user base, said Jim Balsillie, co-CEO of RIM. Growth in the non-enterprise space was bigger than the enterprise space, he said in an earnings conference call. The company hopes to grow further in that space with new multimedia and consumer-centric devices.

The new consumer wireless devices he detailed during the call include the BlackBerry Pearl 8120 smartphone, which has a 2-megapixel digital camera, Wi-Fi connectivity, a memory card slot, email and Web browsing features. The phone will be first launched in Spain.

RIM announced the BlackBerry Pearl 8130 smartphone, which has a 2-megapixel camera, e-mail capabilities, Web browsing, maps, built-in GPS navigation and expandable memory. The phone will launch in the US later this year.

RIM also is reaching out to consumers with BlackBerry Unite, mobile collaboration software that helps users interact more efficiently by sharing calendars, multimedia files and documents on desktops with up to five users. The free software is a low-cost way for family members and small businesses to collaborate, said Balsillie.

The software can backup data to a desktop computer if a device is lost or stolen. It can also wirelessly erase data from a lost or stolen handset.

The idea of RIM pushing into the consumer business makes Bill Hughes, an In-Stat analyst, uncomfortable.

The US handheld device market is already saturated, Hughes said.

"The next big wave [in handheld devices] is for business use," he said. "The company that has achieved success in that area is RIM. To dedicate as many resources to the consumer side, it's going the wrong direction."

Though the Pearl smartphone, designed for consumers, was a success, RIM has a niche in the enterprise market and the company should exploit it, he said. RIM is succeeding internationally with the BlackBerry e-mail application and the mobile device has been the epitome of the business device.

"The consumer effort is a distraction," he said.

Moreover, RIM will have its challengers in the consumer space, like handhelds running the Windows Mobile OS. RIM will need to put a lot of effort into attracting retail consumers, which is a challenging task and could affect the resources it has, he said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?