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Why BlackBerry Still Beats iPhone For Some

05.05.2009
News that the Research In Motion in Q1 surprised many observers, but for those who follow the smartphone market closely, it makes a certain kind of sense. Push-button BlackBerry models like the Curve play well against the iPhone's most notable weakness: text entry. Among other things, this demonstrates why RIM would be wise to skip the consumer smartphone business and stick to what it does best--business handsets. And, in my opinion, that requires keypads, not touchscreens.

It is easy to understand why CEO Jim Balsillie is telling investors a sequel to RIM's touchscreen BlackBerry Storm is in the offing. Consumer handsets are a huge market, but it is not one I can imagine RIM will ever control.

My guess is that about the time RIM comes out with a Storm replacement that Verizon will start getting iPhones. Verizon customers who now purchase Storms because they do not want to change carriers will jump at the iPhone the moment Verizon has some to sell.

This will leave RIM, essentially, all dressed up with nowhere to go. Even if timing is off a bit, eventually Verizon gets iPhones and RIM loses.

A better play, I think, would be to make RIM's keyboard-based devices more attractive to iPhone customers in hopes of luring business customers to its arguably better handsets.

That requires lots more applications for as well as, yes, a competitive music and applications store. The handsets also need the same camera, GPS, and other features of the iPhone as well as excellent Windows desktop support.