IHS SAYS NEW PHONES AND OS IMPROVE BLACKBERRY’S CHANCES

(The following is a reformatted version of a press release
issued by IHS Media Relations and received via electronic mail.
The release was confirmed by the sender.) 
New Phones and OS Improve BlackBerry’s Chances in Longshot Bid
for Smartphone Comeback 
El Segundo, Calif. (Jan. 31, 2012)--It’s the fourth quarter in
the Smartphone Bowl, and the company formerly known as Research
In Motion (RIM) is  up against bigger, tougher competition as
precious seconds tick down to the end of regulation play.
However, while the odds against success may be long, the company
this week improved its chances of pulling off a last-minute
upset with the introduction of the BlackBerry 10 mobile
operating system (OS) and the Z10 and Q10 smartphone models. 
RIM, which also changed its name to BlackBerry this week, has
seen its star fall dramatically in recent years, with its share
of global smartphone shipments falling to an estimated 5.2
percent in 2012, down from 18.7 percent in 2009, as shown in the
figure attached. In comparison, market leaders Samsung and Apple
together accounted for approximately 50 percent of unit
shipments in 2012. During the same period, BlackBerry’s ranking
in the smartphone market fell to sixth place in 2012, down from
second in 2009. according to the mobile and wireless
intelligence services at information and analytics provider IHS
(NYSE: IHS). 
“Despite the overwhelming advantages held by the opposition,
BlackBerry’s introductions this week will keep the company in
the smartphone game--for now,” said Ian Fogg, senior principal
analyst for IHS. “The new operating system and phones increase
the chances that BlackBerry can regain some of its lost market
share during the make-or-break year of 2013. However, in order
to claim the title as the smartphone market’s third ecosystem
after Google and Apple--a distinction now being pursued by a
range of competitors--BlackBerry needs to bring its ‘A game’ in
all areas. These areas range from differentiating its products,
to offering compelling and reliable smartphone devices, to
securing broad operator support, to creating a complete software
ecosystem.” 
Playing offense on differentiation 
Just to start playing in the smartphone market, all contenders
must differentiate their hardware and software compared to the
incumbent leaders--since it’s not possible in today’s market to
compete with Apple, Samsung and Google simply by copying their
products. 
On this front, BlackBerry appears to have scored some early
points, with its new OS widely adopting a unique communications-centric user interface, branded BlackBerry Flow and Peek. The
interface features deep integration of social communications.
With BlackBerry 10, apps like LinkedIn, Twitter, Facebook and
others are part of a single flowing experience, rather than the
separate apps of iPhone or Android. 
“BlackBerry 10 will appeal to the significant number of
consumers that are yet to adopt smartphones because they are
unmotivated by current entertainment and Internet apps, but are
instead communications-centric,” Fogg said. “This focus on
communications also will go a long way to winning back ex-BlackBerry owners.” 
Old reliable 
Delivering reliability as good as existing BlackBerry
smartphones would be especially impressive, since BlackBerry 10
is the first version of a brand-new operating system, complete
with a new user interface as well as new apps. This makes it
highly differentiated compared to older BlackBerry phones that
have changed very little since the arrival of the iPhone nearly
six years ago. 
Team effort 
“Operator backing will be critical for BlackBerry’s future
success. The company needs operators to support its marketing
efforts and to communicate that BlackBerry 10 is not just
another brand, but a genuinely differentiated product from the
scores of Android smartphones.” Fogg contended. 
Luckily for BlackBerry, it has many potential teammates in the
mobile market that will help it play in the big leagues with the
behemoths of Google, Samsung, Apple and Microsoft. The
operators, which are key to the sale and distribution of modern
smartphones in most developed countries, greatly desire
alternatives to the current smartphone market leaders. 
“Further concentration of the smartphone market would weaken the
position of operators with those smartphone leaders in
negotiations over sourcing devices or in ensuring that
operators’ content and communication services products are not
bypassed by smartphone software,” Fogg said. “Operators must
spend now to support the BlackBerry 10 products if they wish to
avoid the current smartphone duopoly becoming entrenched for the
long term.” 
Capitalizing on a turnover 
The BlackBerry 10 launch could be aided by Microsoft’s stumbles
with Windows Phone. 
Two years after the platform’s big relaunch, Microsoft has
repeatedly failed to establish Windows Phone as the third mobile
ecosystem that operators desire. In the fourth quarter of 2012,
lead Windows Phone backer Nokia shipped just 4.4 million Lumia
Windows Phones. Furthermore, Microsoft has failed to leverage
its strength in enterprise software from its Microsoft Office
and server product lines to drive Windows Phone adoption. This
opens opportunities for BlackBerry 10 in the enterprise as well
as among operator partners. 
There is no tomorrow 
“BlackBerry 10 is a smart launch from a smart company that has
marshaled its relatively modest resources effectively to create
a range of next-generation smartphones that are differentiated
compared to what’s on the market now,” Fogg said. “However, to
compete with the big boys, BlackBerry will need to execute every
part of its playbook perfectly during the next 12 months. If
BlackBerry fails in any phase, it will be ‘game over’ for the
company’s comeback story.” 
For more information, please contact: 
Jonathan Cassell
Senior Manager, Editorial
jonathan.cassell@ihs.com
Direct: + 1 408 654 1714
Mobile: + 408 921 3754 
Or 
IHS Media Relations
press@ihs.com
+1 303 305 8021 
(bjh) NY 
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