The traditional BlackBerry smart phones are quite simple: a QWERTY keyboard, an easy-to-use trackpad (or ball for older models), a simple screen and the call/end buttons. RIM shocked BlackBerry fans (and haters) with its unexpected release of the BlackBerry Torch 9800: a touch screen, sliding phone. (http://na.blackberry.com/eng/devices/blackberrytorch.jsp)
Why did RIM bother to step out of its comfort zone and create this unconventional product?
There are two simple reasons.
One: RIM’s market share has been on a constant decline since the summer of 2009. The value has degenerated from being in the $90 range to just above $40 per share. It’s stock value hasn’t been in the $40-$50 range consecutively for over a month in SEVEN years. Maybe, this realization was a big wake up call for RIM’s executives. (http://ca.finance.yahoo.com/q/hp?s=RIM.TO)
Two: COMPETITION! Similar to the Lieber Light case, competition severely pressured the company to take action as the risk of loss of market was undoubtedly present. In this case, Apple is the big menace.
I’ll give a personal example. When the iPhone 4 first came out, my brother lugged himself out of bed at 3am to line up at the Apple store, hoping to purchase the highly anticipated phone. He tried five times. They were sold out every time he went. He never succeeded in buying one. Absolutely ridiculous, is it not?
The conclusion is that the consistent declining stock price and the inevitable threat from its competitor forced RIM to take action. The result is the innovation of the unprecedented Torch 9800. This is definitely not the last straw for the prestigious Canadian company, but now, there’s really nothing left to do but countdown to September 24th.