Blackberry Blackout Latest Trouble for RIM

There was a three-day outage which happened this week so that thousands of Blackberry users could not access Internet and check emails. The outage this time affected the world’s 70 millions Blackberry customers. Some people even have shifted to iPhone. Research in Motion says, “The system has been processing a vast backlog of detailed messages.” At the same time, CEOs of the company said they have not intended to compensate customers, although they would like to do that. The article states that this problem will not cause a big loss of corporate and government clients, because Blackberry occupies successful commercial settings.

Obviously, it is not the first time that Blackberry customers have experienced its outage. I do not think Blackberry will still make profits as many as it used to if the same problem continues. Blackberry will easily lose its market in the super competitive phone market due to close substitutes like iPhone, and HTC. The current condition shows that Blackberry might become another NOKIA and soon trendier smart phones will overshadow its differentiation strategy. Although companies do not want to give it up, Blackberry might frustrate them and finally push companies to leave its market.

Article:http://www.cnbc.com/id/44914502

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