How times change. Back in 2008, RIM was comfortably outselling the iPhone with BlackBerry handsets by a factor of five to one. Now, just a few short years later, the tables have been turned. The iPhone is now outselling Blackberry handsets, and in RIM’s home country of Canada no less.
Last year, RIM shipped 2.08 million BlackBerrys in Canda, while Apple managed 2.85 million iPhones. While sales in Canada only account for 7% of RIM’s revenue, they dropped by 23% in the third quarter compared to the same period last year. US sales are also said to be down 45%.
RIM’s downfall is being attributed to lack of device promotion, as well as the iPhone’s ease of use and vast ecosystem. Paul Taylor, a fund manager at BMO Harris Private Banking, believes that the challenge for RIM is to “reverse the negative sentiment that has developed” around the BlackBerry brand.
RIM’s response to iOS and Android, BlackBerry 10, isn’t expected to make its way onto new handsets until later on in the year. The PlayBook has also failed to make a significant impact in the tablet market, thanks to its lack of a native email client at launch and lethargic software updates.