Why RIM Keeps Winning?

RIM, which had a nice second quarter is expected to have an even better third quarter, thanks to the new Pearl device they have just released and is getting an enthusiastic response. The company expects to add 800,000 subscribers in the third quarter, about 50,000 more than analysts expected. As a result, revenue in the third-quarter will be $780-million to $820-million versus previously expected $700 million. Earnings will be between 88 to 95 cents a share versus 78 cents estimated by analysts.

What makes the performance surprising is that RIM’s strong performance is coming when new competition looms large. Nokia E62, to be introduced shortly at $150 price by Cingular is particularly being viewed as a competitor. It can run all sorts of email services. It is a great smart phone, despite its bulk. So why does Blackberry keep winning?

Simple – it is the best damn email device… period! Nothing works like Blackberry. I had been using Nokia E61 with GoodLink, and it rocked. Except when you added the cost of having an hosted exchange and Good service on top of $50 a month data plan, it added up.

The other solutions – Microsoft ActiveSync only work if you have Exchange, and don’t work too well. The connection stops, the syncing stops and what not. Same is the case with other email clients like Seven. Most don’t play nice with Mac. RoadSync is the only good activesync solution. I frankly could not get Blackberry connect to work on my device, so I just gave up.

The frustration of not being able to get email – and I live on email – was enough for me to revert back to NY mode in a day. A quick pit stop at T-Mobile store, a hasty transaction and now I own a Blackberry. No not a Pearl , but 8700 series device. The email – which is being piped in using IMAP is working, so is Google Talk and Verichat.

Email is real push, not pretend push as in other devices. Cost $30 a month, much cheaper than having a converged device. I probably would never use the new device as a phone: Why should I? I have Nokia N73, N80 and 8801 to choose from, and they are just great phones. Nokia E61 would kill Treo, you can count on it. But for hard core email addicts, BB is the way to go. If RIM spent more resources on making its service reverse sync on IMAP (like Seven’s Always On Email service does) it would be perfect. An email-only device minus the trimmings? Yeah, that should sell too.

RIM co-CEO Jim Balsillie tells National Post:

“These new competitors coming out have been bringing their A game or best game to this space for over a decade. This kind of competitive reality has been there from the beginning when we didn’t have anything like the resources, position, capacity and experience we have today. It is a much more complex thing. If it was so easy, why did these best efforts not derail us from the beginning?”


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