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Torch doing nothing to help AT&T BlackBerry sales

updated 11:40 am EDT, Tue August 31, 2010

BBerry Torch only cannibalizing current ATT sales

Sales of the BlackBerry Torch are having no meaningful impact on RIM's sales at AT&T, Pacific Crest analyst James Faucette claimed in a research note today. After investigating, Faucette understood that the touchscreen slider was mostly cannibalizing Bold 9700 sales rather than adding to the ranks. In many cases, Bold owners are only buying because they're consciously avoiding the BlackBerry 6 platform, Barron's read in the note.

The Torch has quickly settled down after launch and is now in a "stable" rate but isn't seen doing anything to improve RIM's revenue, even with the price going back up to $200.

Supporting the claim, Pierre Ferragu of Bernstein Research added that there was a "sizeable threat" to the BlackBerry in its once-safe corporate environment. The analyst said that 74 percent of those with work e-mail had policies that allowed Android, iPhone and other platforms. Half of those companies added the policy just in the past year, Ferragu said. The option didn't directly translate to share but meant some users would veer away from BlackBerry.

The momentum was also poised to work against RIM. Although security is still a concern for some, some companies are willingly dropping BlackBerry requirements as it lets them save money by putting the phone cost on the worker, not the company. Many employees have called for the option as they want to use an iPhone or another device they already have.

RIM is now the fourth largest phone manufacturer of any kind in the world, but it has been losing smartphone market share this year after initially appearing secure. Its aging mobile OS, mostly unused app store and insistence on clinging to non-touch phones until now has left some customers turning either to Apple- or Google-based phones that often have more modern interfaces, more apps and newer hardware.

by MacNN Staff



  1. aardman

    Joined: Dec 1969


    comment title

    Blacberry is the new Palm Pilot and RIMM is the new Palm Inc. It's all about the ecosystem and Blackberry has none. Or nothing of significance.

  1. Geoduck

    Joined: Dec 1969


    Exactly the problem

    "Its aging mobile OS, mostly unused app store and insistence on clinging to non-touch phones".
    This line is the most succinct explanation of RIM's issues I've seen.
    They got complacent and now they are discovering that they missed the boat.
    Playing catch-up is a b****

  1. iphonerulez

    Joined: Dec 1969


    I didn't realize that RIM would fall so fast...

    It's like the wind just got stolen from their sails (sales). I'd blame Android for doing this but the ironic thing is that while RIM is losing money, it's losing it to Android OS which doesn't make a penny for Google. Google created some sort of a weird mutant OS that's breaking all the other smartphone OSes and Google doesn't seem to really benefit from it.

    Still, it's rather scary that due to a couple of quarter's loss of market share growth that RIM's share price is in the toilet even though it should still have strong corporate presence. I guess once RIM's unlimited consumer growth got killed, that took away investor's confidence of any long-term payback. RIM seems to be headed the way of Nokia and Motorola. Wow! The mobile sector is like "There shall be only one" (to make any money for investors).

  1. mr100percent

    Joined: Dec 1969


    Blackberry 6

    Why would people be avoiding Blackberry 6? I haven't heard of anything bad yet

  1. snork

    Joined: Dec 1969


    re: iphonerulez

    Google doesn't appear to "benefit" directly from the sales of Android but that is only half the story. Remember that Google at it's heart is a search and advertising behemoth. Everyone one of those Android phones is doing mobile searches right in Google and showing them boatloads of mobile ads. If you read about Googles' search statistics, it will only be a matter of time (probably less than 1 yr) before mobile searching outpaces desktop searching. I know whenever I'm out and about I use my iPhone to google search things all the time, especially when I'm traveling.

  1. facebook_Justin

    Via Facebook

    Joined: Sep 2010


    comment title

    Ok, who in their right mind would rent a BlackBerry when that beautiful iPhone sits right next to it for the same price on the same network? I guess the keyboard may convince an extreme typist to get it, but even then it's just pathetic. BlackBerry should focus on T-Mobile, the only other major national carrier that supports world standards. T-Mobile doesn't officially have the iPhone (yet) so they have some time.

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