Did Research In Motion (RIMM) Blow It?

Well, RIM … “Ya Blew It!” Imagine this phrase uttered like De Niro said to Stallone in Cop Land, just with much more conviction. I am putting the pom-poms down and the party is over for Research in Motion RIMM in my humble opinion – at least for a while. Since 2008, I have written many articles about the Canadian Smartphone pioneer and have built a case for this company recovering from its lagging position in the race to be on top. A year or so ago, I cited RIMM’s acquisition of Torch Mobile as a move in the right direction to get the BlackBerry browser up to date and hopefully looking cool.

RIMM has always been a slow-and-steady-wins-the-race sort of company. They engineer and refine their products to be dependable and capable, which I applaud them for. This is also a trait I thought would help them in the long run as long as they could balance that dependability with creating new and exciting products.

So when I heard earlier this year about OS6, I got excited. I felt that RIMM would really wow us not only with this cool new operating system, which they so eloquently teased, but with a device that would bring “sexy back, ” just like Timberlake! But no, we get another so-so slider that looks the same as about 15 other devices which have preceded it, only much less sexy. Here you can check it out for yourself.

When Steve Jobs is on stage waxing poetic about how magical his devices are and how nothing like “It” has ever been created before, I would think the counter from RIMM would be something with a bit of uniqueness. Maybe a form factor or set of features that really made the Torch stand out. Looking at the Torch, it seems to just blend in with everything else.

On the other hand, Jobs and Apple take chances. I mean, look at their new cutting-edge, wrap-around antenna that makes calls drop when you touch the edge — it’s amazing! (I say this with my tongue firmly in my cheek). What is truly remarkable is the fact that people even know the iPhone 4 has a major flaw and they are buying it anyway. They buy it because it’s unique and because it feels cool to own one. Not to mention that presentation of the product by Jobs and Apple is much like watching Cirque du Soliel, unlike what I got out of the Torch launch, which was a bit like watching thermosetting plastics dry.

I remember watching the post-launch interview (the launch of the Torch wasn’t nearly as hyped or clear as the iPhone) with the head of AT&T Wireless Ralph de la Vega. When asked what makes the Torch stand out, de la Vega couldn’t even seem to find a specific feature, although he did say it was a versatile phone that allows users to have a choice between the touch screen and keyboard. So thanks for that.

You would think after AT&T’s already over-taxed network won exclusivity to the Torch, they might do a better job at pitching it. CNET agrees with me and notes that the decision to go with AT&T might have been a mistake on RIMM’s part.

So RIMM delivers a lackluster device on a network that has had its share of issues to begin with. That network, by the way, is still struggling to lasso every last iPhone customer before Verizon gets a crack at it. Meanwhile, they are on the hunt for another hot-selling smartphone (or several), which is why RIMM probably got a sweet deal for exclusivity. Then there are the troubles with the United Arab Emirates, but I am not even going to address that.

So in fairness to RIMM and its preferred carrier for the Torch, I decided to take a trip to the AT&T store here in Dallas to get a feel for the product and how it was presented. There were a ton of phones to choose from and by the way, Android phones have eclipsed the iPhone in U.S. smartphone sales, which means just that much more competition for our friends at RIMM.

So here is the Torch in the store. It was housed in a shiny, hermetically sealed case, untouched and untouchable by human hands, which really bummed me out. I was hoping to be able to defend the phone and its new features and maybe share some cool experiences I had with it, but alas, I will have to wait until August 12. I am not sure of the strategy here; perhaps they don’t want customers touching it, using it, falling in love with it, or potentially not really falling in love with it? It’s not like new Droid phones and iPhones are gaining market share or anything.

As much as I felt this company could do something great, there is a lesson to be learned here. Don’t fall in love with any company blindly. While I still think there is a future for RIMM, many analysts share my thesis that RIMM has failed to deliver here and that future growth may be muted. This happened with Nokia NOK if you remember; they really had a stronghold on the market but failed to keep up with the times. Motorola’s MOT RAZR is another example of this.

I do still love RIMM’s products and feel the BlackBerry is a dependable solid piece of technology; it’s just not that sexy anymore.

Share and Enjoy: