The iPhone’s real competition: RIM

rogers-htc-dream-magicI recently got to play with the two Android phones that Rogers is currently selling, HTC’s Dream and Magic. From my experience with them, I would say they were far from being a “dream” or “magic” or anything close to usable. Cheap hardware in addition to confusing and inconsistent controls has left me severely disappointed with Android. They were nowhere close to as good as the iPhone, and pale in comparrison to the current BlackBerry models out right now.

Today John Gruber wrote that the iPhone needs a strong competitor:

I’ve said it before and will say it again, the best thing that could happen for Apple and iPhone owners would be for at least one strong rival to appear. Two [Palm] would be even better. A monoculture benefits no one in the long run, because it’s competition that drives innovation.

A “monoculture” this is not. He points to Android and Palm as the iPhone’s potential competition. He overlooks that fact that Apple’s real competition is RIM and the BlackBerry. In May, the BlackBerry Curve outsold the iPhone in NPD’s analysis of Smartphone Sales. The Curve is only one of RIM’s phones. In that same list, RIM occupied three of the top four spots:

1. RIM BlackBerry Curve (all 83XX models)
2. Apple iPhone 3G (all models)
3. RIM BlackBerry Storm
4. RIM BlackBerry Pearl (all models, except flip)

I do not have the specific numbers, but I would bet all of RIM’s phones together would equal many times the number of Apple’s phones sold in a given month.

Overlooking RIM as Apple’s real competition in the Smartphone market is a mistake. Even though the BlackBerry is the established giant, it has not stopped them from innovating. With the Storm 2 coming out, and RIM releasing a new BlackBerry at a rate of what feels like every month, I expect the BlackBerry will continue to dominate the market in North America – and continue growing overseas.

My next phone is doubtful to be anything but the next iPhone, but that is definitely is not the same for most people.

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4 Responses to The iPhone’s real competition: RIM

  1. Tim S says:

    “I would say they were far from being a “dream” or “magic” or anything close to usable.”

    That's why RIM isn't on JG's list of competitors. He's not looking at volume of sales, he's looking at the quality of product. Apple has been eating into smartphone marketshare now for just over two years and they're already the #2 smartphone.

    No one doubts on the sales side that RIM is competition, but that doesn't make their products comparable to the iPhone. One by one the complaints people have about the iPhone vs Blackberrys have come tumbling down. Pretty soon it'll simply be the on-sceen keyboard, something that hasn't proven to be a serious problem for Apple's popularity.

  2. What you are saying is definitely true, the Curve, Storm, and Pearl don't even compare to the iPhone. I agree that no current BlackBerry comes close to being as great as the iPhone, in all respects (keyboard included).

    I wouldn't count RIM out of producing a high-end BlackBerry that can compete – apparently they are the world's fastest growing company, http://www.cbc.ca/technology/story/2009/08/17/r...

  3. Tim S says:

    Oh, I'm not saying they *can't* do it, I'm just suggesting that it's unlikely. You want to know another company that was fast growing? Nortel. Growing fast is not the same as successful.

  4. Tim S says:

    Oh, I'm not saying they *can't* do it, I'm just suggesting that it's unlikely. You want to know another company that was fast growing? Nortel. Growing fast is not the same as successful.

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