Research in Motion (RIM), once a leader in smartphone innovation, is now struggling with dim outlooks and sluggish sales, and its delay of the BlackBerry 10 gadgets is adding even more pressure on the company. RIM's Chief Marketing Officer Frank Boulben, however, is confident that things will turn around.
Just one month into his new position as RIM's Chief Marketing Officer, Boulben promises to knock people off their feet when the new smartphones running the BlackBerry 10 software are finally released in early 2013, more than one year later than analysts had expected.
According to Boulben, RIM will sport exciting features that current devices lack. The company has not released many details regarding BlackBerry 10, but said the software will include the ability to run multiple programs simultaneously, and will also allow users to easily switch between programs without having to return to the home screen. Meanwhile, iPhones and Android devices generally require users to return to the home screen to start or resume an app.
"You'll be able to flow seamlessly from one application to another," Boulben told the Associated Press (AP) on Monday, July 9. "The underlying operating system is truly multitasking."
On the other hand, competitors will likely still have an edge over BlackBerry devices, as RIM's gadgets have fewer games, utilities and other apps to extend their functionality. Touting new features, however, is an important part of the challenge.
Analysts, meanwhile, are starting to believe that RIM is running out of time to keep its head above the water. The company's annual shareholders meeting in Waterloo, Ontario on Tuesday, July 10, comes less than two weeks after RIM announced disappointing financial results, dramatic layoffs and another delay in releasing BlackBerry 10. With such news, the company's stock is trading near a nine-year low.
Sales of BlackBerry phones dropped as much as 41 percent in the last quarter and will likely not recover until new phones hit the market next year. Consumers will have even more choices by then, especially since Apple's highly-anticipated next-generation iPhone, informally dubbed the iPhone 5, is expected to arrive this fall, and Google just released its latest version of Android, called Jelly Bean. Moreover, phones running an enhanced version of Microsoft's Windows operating system are also due this fall.
RIM was once the undisputed king in corporate environments due to BlackBerry's reputation for security and reliability, but competitors caught up and soared by as Apple's iPhones proved that smartphones can handle so much more than email. According to research firm IDC, the BlackBerry's market share in the U.S. has plunged from 41 percent in 2007, when the first iPhone debuted, to less than 4 percent in the first quarter this year.
RIM has put all its hopes in BlackBerry 10 to catch up to rivals. The company promises to meet the current demand for multimedia, Internet browsing and apps experience, as well as offer better multitasking, said Boulben, noting that the new BlackBerry will not become a "me too" product.
The smartphone market is still new and growing, added Boulden, and RIM can meet the needs of millions of people worldwide who don't own smartphones yet. Also, U.S. consumers replace their phones every 18 months on average, which gives RIM a chance to slide in and lure them with the new BlackBerrys. "We won't be present for this year, but next year we will be present in a larger market."
Boulben further noted he plans to centralize marketing for BlackBerry 10, and has already developed a global marketing strategy. While in the past countries and regions ran their own marketing campaigns, sometimes causing conflicts, the new centralized marketing approach will help reduce costs and allow RIM to take better advantage of Facebook and other such global social networking sites.
