Android vs. Apple and the state of smartphone industry: 4 takeaways

By Larry Dignan | July 28, 2011, 7:16am PDT

Summary

Nielsen data indicates that Android is the top smartphone platform and Apple is the top manufacturer. In between those data points is a lot of nuance.

Blogger Info

Larry Dignan

Andrew Nusca

Rachel King

Nielsen data indicates that Android is the top smartphone platform and Apple is the top manufacturer. In between those data points is a lot of nuance.

First, here’s Nielsen’s money graphic.

That graphic says a lot about the state of the smartphone market today. Here are my top four takeaways:

1. There’s a toss-up between integrated and partner-based platforms. The smartphone industry is often compared to PCs in the early days. Once upon a time, Apple controlled hardware and software. Microsoft partnered with OEMs. Microsoft won that market share game. So far in the smartphone industry, we have a draw for the most part. Consider that Research in Motion and Apple both control their software and hardware and integrate the two. Combined RIM and Apple have 48 percent of the market. Considering that RIM hasn’t had product on the market for a year that integrated share is impressive. Toss in HP, which controls the WebOS and you have half the market with an integrated system approach. On the partner side of the equation, Android has 39 percent share and Microsoft chips in another 9 percent.
2. RIM isn’t dead yet. Imagine a company that has management issues and a product void that has lasted forever in smartphone terms and still had 20 percent of the OS market. That’s RIM. If RIM’s BlackBerry OS 7 devices can do anything in the market, the company has a shot at being a major player.
3. Microsoft needs more hardware partners. Look at the sliver that is Microsoft’s platform share. Then look at the partners. Microsoft has two friends on the smartphone block—HTC and Samsung. The software giant will need more OEMs if it’s going to compete. Given Nokia is a no-show in the U.S. there are no guarantees that Microsoft’s partnership with Finland’s leading tech company will matter much.
4. Android looks zero sum for hardware players. The Android partners—HTC, Motorola and Samsung—have carved up the market nicely. Unfortunately, it’s hard to see Android doing much better in market share than it is today. That fact means that HTC, Motorola and Samsung are going to wind up killing each other to grow share.

http://www.zdnet.com/blog/btl/android-vs-apple-and-the-state-of-smartphone-industry-4-takeaways/53392?tag=nl.e539

Research in Motion lays off 2,000 workers, still needs a hit device

By Larry Dignan | July 25, 2011, 5:13am PDT

Summary

Research in Motion will lay off 2,000 employees as it struggles to navigate a void in its product line-up as well as lower-than-expected sales.

Blogger Info

Larry Dignan

Andrew Nusca

Rachel King

Research in Motion said Monday it will lay off 2,000 employees as it struggles to navigate a void in its product line-up as well as lower-than-expected sales.

When the layoffs are complete, RIM will have about 17,000 employees globally. The company said that it will take a charge in its fiscal second quarter and exact figures will be disclosed when RIM reports earning Sept. 15.

Along with the layoffs, RIM is shuffling its executive suite. First, Don Morrison, RIM’s chief operating officer who is currently on medical leave, will retire. Thorsten Heins will become chief operating officer for product and sales. In a nutshell, all product engineering—hardware and software—will be consolidated under Thorsten.

Patrick Spence will become managing director of global sales and regional marketing. Spence will report to Heins.

Among other key management roles at RIM:

• Robin Bienfait will become responsible to RIM’s enterprise unit. She is already RIM’s CIO focused on BlackBerry operations, customer service and corporate IT.
• David Yach, CTO of software, will focus on RIM’s developer relations and application ecosystem.
• Jim Rowan will be chief operating officer of operations and focus on manufacturing, supply chain and repair. Rowan and CFO Brian Bidulka will oversee RIM’s current cost cutting efforts.

Overall, these moves are designed to help RIM “create greater alignment of the organization” and “streamline operations to better position the company for future growth and profitability.” However, RIM needs to get on the board with new products more than anything. RIM needs a hit device more than cost cutting moves.

RIM co-CEOs Jim Balsillie and Mike Lazaridis took some heat from shareholders earlier this month at the company’s annual meeting. The co-CEOs talked up RIM’s upcoming BlackBerry OS 7.0 devices and the company’s next big product launches. The problem is that these devices are the warm-up act for so-called superphones powered by the QNX operating system.

Some analysts are questioning the leadership of Balsillie and Lazaridis and have noted that RIM has missed key inflection points in the smartphone industry. Specifically, RIM has wrestled with the software integration with its hardware. In the meantime, RIM’s market share in the smartphone industry continues to erode.

Today’s cost-cutting efforts are designed to help RIM hold the fort until its new products juice growth. At least that’s the plan of Balsillie and Lazaridis.

RIM has made a series of acquisitions to better compete on the software front. For instance, RIM acquired JayCut last week. And last year RIM acquired The Astonishing Tribe, a user interface optimization firm. Before that purchase RIM bought Torch Mobile and QNX. Add it up and RIM is serious about software, but it’s unclear whether the company can master hardware, software and the necessary integration in between. Balsillie has argued that the next wave of RIM products will set the company up for the next decade, but skeptics abound.

Related:

Vultures circle RIM management: BlackBerry 7 devices as savior?

• BlackBerry PlayBook vs. HP TouchPad: A tale of two failures
• RIM confirms new BlackBerry Bold 9900 “will be available this summer”
• Apple’s iOS zips past RIM as Blackberry product vacuum continues
• AT&T finally approves BlackBerry Bridge app, slaps on $20/month for tethering
• AT&T releases BlackBerry Bridge for the PlayBook over 2 months after release
• Alas, poor RIM and BlackBerry, we knew them well
• RIM’s conundrum: Convincing you to buy a BlackBerry 7.0 device?

CNET: RIM, the picture of a top-heavy company

http://www.zdnet.com/blog/btl/research-in-motion-lays-off-2000-workers-still-needs-a-hit-device/53076?tag=nl.e539