Apple Closes in on Exxon, RIM’s Dismal Recovery Outlook

Blackberry development firm Research in Motion (RIM) has fallen on hard times. On the heels of a dismal quarterly report, the once-powerful player in the mobile market laid off hundreds of workers and continues its attempts to compete with Apple’s iPhone and devices running on Google’s Android software.

In a market domination of Wal-Mart proportions, Apple shipped 20.3 million iPhones in the second quarter of 2011, making it the best-selling smartphone in the global market for the first time, according to a study released by research firm IDC last Thursday. This figure is up 141.7 percent from the 8.4 million units the company sold in the second quarter of 2010, earning it an impressive market share of 19.1 percent, up 13 percent from a year ago. “Apple’s success can be directly attributed to its distribution,” IDC reported, as the iPhone is now available on 200 carriers in 200 countries.

The mobile landscape has shifted considerably in 2011, with Apple beating out former front-runner Nokia, who experienced a 30.4 percent drop in smartphone sales. Although RIM experienced a 10.7 percent increase in unit shipments in the same quarter, its market share still fell from 17.4 percent to 11.6 percent in 2Q 2010.

Several factors contributed to Blackberry’s plummeting stock shares, including being slow to update both its phone lineup and its sluggish operating system, as well as to realize the importance of the massive market for apps. While RIM promised to begin selling smartphones that run its new QNX OS, currently available on its PlayBook tablet, the system is already being panned by tech authorities like PC World, who recently posted an article claiming that the new phones are “expected to underwhelm users.” RIM might also face another challenge if Apple releases the iPhone 5 around the same time in early 2012.

The widening gap between Apple and other competitors within the mobile market can perhaps best be exemplified by new reports about the company closing in on Exxon Mobil in stock value. It has been predicted that 1 in 2 Americans will have a smartphone by Christmas of this year, making mobile marketing one of the best avenues for marketers to advertise. If you’re considering beginning a foray into the mobile market, contact Blue Interactive Agency for expert tips on creating your best campaign. Blue builds mobile compatible websites, creates QR codes, ad networks and more. Call 954-779-2801 to find out more today.