Study shows the future is bleak for BlackBerry

There was a time, not that long ago, when the ONLY phone you could have in the corporate world was a BlackBerry. In the world of corporate banking, using an iPhone for work pretty much meant that you were an anarchist (although many of them had one for personal use). The perception was that BlackBerry was secure, where other phones were not. However, that perception has been slowly changing. In spite of some malware warnings (usually from security software providers) there are many tens of millions of Android and iPhones out there with little evidence of security issues.

According to a new study, BlackBerry’s recent outage will considerably damage the company, with many of their users switching to other smartphones. YouGov’s smartphone survey (SMIX) found that in September most BlackBerry users rated the company between 8 & 10 (out of 10) for satisfaction. However, following last week’s problems, the overall satisfaction dropped by a massive 8 points. This was particularly marked by the number of users who would consider buying a BlackBerry again. Just 42% of users said they would get another BlackBerry, a drop of 11% on the previous study. Another recent study by Enterprise Management Associates (EMA) found that only 16 percent were “completely satisfied” with their BlackBerries, compared to 44 percent of iPhone users.

Of course, conducting a study immediately after such a major outage will reveal customers at their least dissatisfied. RIM still retain a high level of customer loyalty and currently there is nothing that directly challenges BBM for both cost, ease of use and security. Now, if Apple were to develop a secure messaging function then maybe BlackBerry’s future then maybe the corporate world will switch to the iPhone.

More on the study here

BlackBerry NFC to allows sharing between phone

BlackBerry has announced that its new OS7 will include the facility to share files, contacts, docs and more between handsets, which are NFC enabled. RIM has been adding NFC chips to it’s higher end Curve and Bold models since the spring this year. They are not the only company to show an interest in Contactless technologies in mobile. Orange, in conjunction with Barclay card launched a Samsung NFC phone in 2011. Google has also firmly shown their commitment to NFC with their wallet.

However, BlackBerry is the first to promote the file sharing aspect of the technology. Outside of the business market, their key demographic are younger users (it’s all about BBM), and the presence of P2P-based file sharing will set well with that audience. It was this demographic that made use of Bluetooth for file sharing in the days when Nokia were still making phones. BlackBerry Tag looks set to replace that for their users. VFC has been slow to roll out, but could BlackBerry tag do for contactless what BBM did for IM on mobile?

Although not primarily aimed at mobile marketing, this initiative could help open things up for that market. The company will include a developer API to allow third party integration with the ‘tap to share’ function. Look out for a ‘tap’ to do download poster in the near future.

Blaming the messenger: is BBM fueling the London Riots?

The first blog about the relevance of BBM was on urbanmashup – follow this link for more information.

Following the weekend’s riots in Tottenham and elsewhere in London, the police, other authorities and The Daily Mail (of course) were quick to blame ‘social media’ for fuelling the unrest. Steve O’Connell of the Metropolitan Police Service was quoted (by Bloomberg) as saying: “The bad guys were using these sites to target areas quickly. Small bands of ne’er-do- wells were descending on high-quality stores to loot.” he also said:  “The police are ahead of the curve in information technology and would have experience of the use of social- networking sites by troublemakers,” Ahead of the curve? Really? Throughout the day, it has become obvious communications are not happing on Facebook or Twitter but rather that BBM was the communication tool of choice for young, urban rioters.

The Guardian has reported that the evidence of an organised social media campaign is pretty scant. As far as Facebook goes, most of the activity related to the death of Mark Duggan and the subsequent vigil and peaceful protest. In fact, the fan page was set up on Saturday night after the peaceful protest took place. Whilst posts on Twitter were a little more inflammatory, the main target was a festival in Hackney which was cancelled as a result.

There is growing evidence, though, that the choice of communication for many of those involved in the unrest is BlackBerry’s instant messaging system BBM. Messages have been flying around in this channel since Thursday, shortly after the fatal police shooting. For those of us who study our handset demographics, this isn’t a great surprise. iPhones are the choice of the middle class, aged 25+. Android, on the other hand, appeals to a younger, male audience. But that appeal is to a more techie demographic, than an urban one. The choice of BlackBerry and BBM is, in part, a highly practical one: BBM is free and largely anonymous – you don’t need phone credit to use it. You can quickly create groups and forward messages anonymously. A trend in BBM is also to use status updates as the conversation itself turning BBM into a kind of Twitter (without the hashtags), speeds up communications further.

But the choice of BlackBerry is more than a cost/practical one. After all, why did they not Tweet (although some have re-tweeted BBM messages), or checked in on Foursquare? The reason is that those social media channels are just too middle class and lack the urban appeal (and I don’t see Foursquare ever creating a ‘looters’ badge). I have often said, that the choice of the phone you have is as much about fashion and identity as practicality. BlackBerry is the choice of rappers (Dizzy Rascal even promoted his album through BBM) and the choice of poorer, younger, urban dwellers. Mark Duggan, for example, sent a BBM message to his fiancé shortly before the incident in which he was killed.

However you want to name it – ‘criminality’, ‘greed’ or ‘revolt’  – the causes of the current unrest go way beyond the technology itself. There will be inevitable calls for the censoring or banning of BBM, just as there were calls to end the purchase of anonymous SIM cards after the London student riots. The police have already threatened to pursue and prosecute those who are making ‘inflametory’ comments in social media. Whilst BlackBerry have offered their help to the authorities, at the end of the day, the UK riots would have happened regardless of BBM. It just so happens to be the choice of communication channel for that particular group. But blaming BBM for it is simply blaming the messenger.

The Problem with BlackBerry: still loosing sales to Android

The indications have been there for some time, but the rise and rise of Google’s Android seems to be at the expense of RIM’s BlackBerry. Whilst iPhone sales are slowly increasing, RIM is seeing its market share eroded. In an attempt to bring back their market share the Canadian company announced a number of new handsets (and launched their poorly received Play Book) at BlackBerry World this week. One interesting development was the announcement of an NFC enable BlackBerry Bold for contactless payments and ticketing. At the moment the handset has only been announced for the US users. The potential of NFC is significant and the fact that RIM are early to market in this technology could give them an advantage.

But are these handsets enough to increase BlackBerry’s position in the handset wars? Not according to Wall Street, with analysts predicting that the developments were little more than incremental and did nothing to deal with the underlying problem: good handsets but a poor operating system. The bottom line is that RIM are attempting to play catch-up by adding iPhone-like features. In a time when OS choices are driving smartphone adoption, Wall Street analysts claim that they are not addressing the ‘ineptness’ (as one analyst described it) of their operating system.

Although Blackberry was positioned primarily to the business market, their key success in the last few years has been BBM, their free, built-in messaging product. It has been widely adopted by teenagers in a similar way to the adoption of SMS ten years ago. Unfortunately young people are not the key demographic for success in the market. It’s the 25+ professionals (so, people with money) that are defining the iPhone and Android sales. Getting sales are not just about operating systems and great handsets, these days it’s also about app stores. Apple defined the market, but Android are rapidly catching up with iTunes. They already have more free apps, and the latest predictions show Android Market overtaking Apple’s offering the autumn. Does anyone buy a BlackBerry for the app store? Not very likely.

If BBM is so popular, why isn’t everyone doing it?

It’s a question I’ve been asked quite a bit recently. Blackberry is THE handset of choice for teenagers and early 20s. And the reason is BBM. Why BlackBerry messenger? First and foremost it’s free without a contract. It allows group conversations, it allows anonymous forwarding of messages. That’s the main reason why teenagers use BlackBerry, but there are a few other reasons. BlackBerrys have buttons. Touch screens are slow and hard to use on the move. Buttons can be used with two thumbs making it much faster to type. And BlackBerrys are cool. Maybe you thought the iPhone was cool? It is if you are over 25, but not if you’re a teenager. Just as BBM started to catch on, the BlackBerry was paraded around by the likes of Paris Hilton, various rappers and in Gossip Girl.

Of course the thing about BBM is that it’s adoption is the same happy accident as SMS. It was clearly invented as a business tool, but teenagers liked it because it was fast and cheap. Before BlackBerry knew it they were the teen object of desire.

So why wasn’t it MSN? After all teenagers were already using MSN on their PCs? The primary reason is one of cost. You needed a data tariff on the handset before you could use it. BBM is free. Both handset manufacturers and operators have tried to introduce something similar. In the UK there is Orange friends. Nice idea, but it’s not going to work. Firstly, operator-based communication channels have a history of failure (dare I mention Vodafone 360?). Teenagers don’t mind being tied to a handset, but they don’t like being tied to a particular operator. Operators aren’t cool. Handsets are.

So what about things like Skype, iChat and other messenger services? The short answer is that it’s simply too late. BBM has stolen the market, and it is nearly impossible to catch up. If all your friends are on BBM, switching to another channel is akin to social suicide. There are also a few usability issues to throw in. If you want to use MSN or iChat you need to keep the app open. BBM is already there.

Will BBM see the end of SMS?

There is no evidence that BBM will see the death of SMS. True, teenagers are switching away from email, but they are still using SMS to communicate with those who don’t have BBM (they’re called adults). One key issue is that the last time teenagers adopted a cheap, fast messaging system it was SMS in the 90s and look what happened to that. We are now at a point where more people use SMS globally than make phone calls. SMS also brings massive revenues for the operators. But BBM will not necessarily have the same rate of adoption for a couple of reasons. Firstly, unlike SMS it isn’t universal. It’s only Blackberry and they have little over 5% of the global handset market. SMS was built into every GSM network as standard. Secondly, there’s no significant revenue opportunity for the operators. The value of BBM is in selling handsets. True, the operators make money on their handsets, but their primary source of revenue is in subscriptions – making money from voice, SMS and data (maybe).

From a brand marketing perspective, this means that SMS is still significant. It is still very much the call to action, the thing that more than 90% of people use, more than 90% of text messages are read and more than 90% of people remember what a brand message said. BBM has a long way to go before it can catch that up.

Some suprising stats about mobile web usage worldwide

Mobile analysts, Royal Pingdom, have produced some surprising research regarding worldwide mobile web usage. Proportionately it is highest in Asia and Africa. Not only that, the most used handsets by far are Nokia’s running Symbian OS. Or is it really that surprising? Given that these are proportional figures comparing fixed vs mobile web, rather than volumes. In the UK for example, 20m+ people access the mobile web every month. That represents over 20% of mobile users, however proportionately the web usage only accounts for just a few percent. That’s because mobile access is shorter demonstrating a more ‘snacking’ behaviour. In large parts of Africa and Asia, fixed web is difficult to obtain, and mobile offers the only practical way to get online. Similarly with the handsets, the iPhones and BlackBerrys of this world are just not available in many of those countries. They are the places where Nokia dominate.

Some countries particularly stand out for their relatively high mobile web usage: in Nigeria it’s 25% and in India and Bangladesh it’s 15%. What the figures don’t tell us is what kind of web usage it is. Are they browsing mobile optimised sites? Social media? Or email? Certainly the predictions that mobile web will overtake the fixed web in the next few years look very realistic.

Mobile broadband sales plumet

A report by the website Broadband Expert has shown that mobile broadband sales in the UK have declined by 57% as the technology fails to live up to consumers’ expectations.
Anyone who has experienced mobile broadband knows that the connection speeds vary from slow to snail-pace. For most, the speeds are similar to those old dial-up connections. Whilst it offers a handy way to get connected outside of home or office, with the growth of Blackberrys and iphones, the need for a remote PC connection has reduced.
At the moment, from a network point of view this is probably a good thing. Many networks are creaking under the strain of people constantly checking Facebook for updates through their phones. So perhaps the drop in mobile broadband connections will have relieve this strain. Of course the drop in sales for the mobile operators is less of a good thing.
The hope is that the roll out of LTE (Long Term Evolution) network connections will give mobile broadband the shot in the arm that it desparately needs.

Android outsells the iphone in the US

… and Blackberry sells the most. According to figures from ND Group, the iphone represented 21% of smartphone sales in Q1 2010, whereas Android took a 28% market share, and Blackberry remained the market leader with 36%.
It’s certainly true that the iphone is a single model handset whereas both Android and Blackberry cover a number of models. However, it confirms that Apple, though highly significant in phone sales, far from dominate the market.
More on the story here.

The next youth trend in handsets will be …

… The Blackberry. Yup, you read that correctly, the Blackberry! This mainstay of mobile business email is on the verge of becoming the must-have gadged for teenagers. But surely not? What about the iphone, it’s way cooler than anything RIM has to offer? Well the iphone is cool if you are 20somthing (or 30something even) and particularly if you are a creative, media, Twitter using-type. But if you’re a teen the iphone doesn’t have much to offer (and teens don’t use Twitter anyway). For starters the iphone is pricey, only available on specific networks. What’s more, everything’s heavily tied into Apple and their itunes store. Not great if you are sharing, rather than buying music as many teenagers do.
Blackberry, on the other hand, actually has coolness amongst teens. It’s the handset of choice for Paris Hilton (bright pink and covered in Sorowski crystals) and the cast of Gossip Girl. Its strange how Apple Macs are always the computer of choice in films and television, but the iphone has not made the grade. Maybe it came too late, or maybe Blackberry just did a better job of product placement.
The other thing that RIM have going for them is the killer app for teenagers. But its not a game nor a camera. Its their instant messaging application ‘BBM‘. It’s fast, simple and free (if you have a data package). You can copy and paste conversations, send them on anonymously and best of all you can quickly change your screen name to become undetected to people. The other advantage of the Blackberry is the QWERTY keyboard, which can be used with two hands. Considerable faster than the iphone’s touch keypad. An essential consideration in the world of teenage communication. That’s also the point. For teenagers communication is as important as entertainment. Facebook’s success in the teenage market has been helped by status updates and spam free messaging.
What is also interesting is the way that teenagers are rapidly adopting a business tool for their own purposes, in much the same way that teenagers adopted SMS a decade ago. Text messaging was seen as a business tool, but the younger demographic encouraged by the low cost, saw SMS as the perfect tool.

For more on this, see the article at
There is an interesting paper by MIT on the whole subject of youth and identity here: