As RIM struggles to rectify one of its most disruptive BlackBerry outages, the company may see more losses as Apple's iPhone 4S becomes available to customers looking to switch.
Not only that, older iPhone models with reduced prices and Google's upcoming Android 'Ice Cream Sandwich' update may tempt those increasingly dissatisfied with RIM's services to try out other company's offerings in light of the BlackBerry outages. Matt Thornton, an analyst at Avian Securities LLC in Boston said that the Blackberry outages are awful timing for RIM, as investors demand more from the once-leader in smartphones.
'RIM is doing some of Apple's work for them.'
As Apple prepared for its launch week, prompting a record one million pre-orders for its new iPhone 4S, RIM was in the midst of dealing with BlackBerry outages that strike at the core of the company's once heralded services. A network failure in RIM's U.K. data center prevented messaging and normal Web browsing on BlackBerries around the world. The service has since been restored prompting apologies by the company's co-CEOs, saying that RIM has let many customers down.
RIM customers dissatisfied by the BlackBerry outages may look to other companies such as Apple, prompting them to trade off their BlackBerries, cell phone covers and cell phone cases for iPhone 4S accessories. Those looking beyond Apple may await for high-end phones like Samsung's Galaxy Nexus, touting Google's latest iteration of Android.
Besides failing stock and investor demands for BlackBerry products fit for the competition, RIM deals with how to compensate for the disruption of service and its continual push for its entire lineup to a new operating system. Patrick Spence, RIM's head of global sales and regional marketing said, 'We know we'll have to work to do to build back that credibility,' understading customer frustration towards the BlackBerry outages and recognizing RIM's need to improve on how to deal with such issues.
As many make the switch and look to protect the 'Apple of their eye' with iPhone 4S covers and iPhone 4S leather cases, RIM scrambles to keep customers in lieu of BlackBerry outages, ramped up competition, and a line of products that once touted superior cellular service.
