LONDON --- Research In Motion (RIM) is likely to end 2007 with around 10% share of
the smartphone market. This means that in terms of device shipments, RIM
will be the second largest smartphone vendor in 2007, after Nokia. RIM’s
share in the smartphone market has steadily increased in the last five
quarters -- from 7.2% in 3Q 2006 to 9.5% in 3Q 2007. However, RIM’s
business is still predominantly in North America and the company now
needs to put increasing efforts into addressing and benefitting from the
growing demand for smartphones in the emerging markets of Asia Pacific
and other regions.
According to ABI Research industry analyst Shailendra Pandey, “In
addition to operator partnerships, RIM needs to grow both its R&D and
manufacturing capabilities to expand and increase its presence in
markets beyond North America and Europe. Considering the growing
opportunities in the Asia Pacific region, a manufacturing and R&D
presence in India or China can help RIM in shipping more devices and
reducing overall costs.”
This specific focus on the enterprise market and the email feature has
helped RIM establish itself as one of the most preferred vendors in the
smartphone market. This also enables the company to maintain higher and
more stable ASPs for its devices. ABI Research estimates $345 as the ASP
of RIM handsets in 2007, which is substantially higher than the overall
industry average of $248 for smartphones. The growing popularity of RIM’s
devices indicate that consumers and carriers are willing to support
higher priced handsets, if the feature set is right and the device is
executed well.
ABI Research expects RIM to continue performing strongly in the
smartphone market in 2008. However, RIM will have to seek ways to
include better features, improved design and a clearer UI in its
devices, and introduce more handsets like the BlackBerry Pearl for the
prosumer market. The firm’s new research
brief, "Research
In Motion Strategic Review" (http://www.abiresearch.com/products/research_brief/Mobile_Devices_Mar
ket_Update/117) examines RIM’s performance
in the smartphone market. It highlights RIM’s
strategies and assesses the company’s
performance in recent years and quarters. It also compares RIM’s
performance to that of other key smartphone vendors including Nokia,
Motorola, Sony Ericsson and Palm. The study also provides key
performance indicators including handset shipments, ASPs, and
market-share data.
This study forms part of ABI Research’s Mobile
Devices Research Service (http://www.abiresearch.com/products/service/Mobile_Devices_Research_S
ervice).
ABI Research is a leading market research firm focused on the impact of
emerging technologies on global consumer and business markets. Utilizing
a unique blend of market intelligence, primary research, and expert
assessment from its worldwide team of industry analysts, ABI Research
assists hundreds of clients each year with their strategic growth
initiatives. For information, visit www.abiresearch.com,
or call +1.516.624.2500.
