Tuesday, November 29, 2005

Cheaper mobile email could squash Blackberry

Techworld picks up an IDG New Service story about the challenges Research In Motion face regarding growing competition in the mobile email space. According to the article, the market is largely untapped with RIM controlling a majority of the market so far with about 3.65 million Blackberry users.

Andrew Neff at Bear Stearns said, "For now, BlackBerry is the only game in town, and [RIM is] pricing it that way." Microsoft, Nokia and other companies are attempting to make inroads in the space, although Ben Wood at Gartner noted, "When all is said and done, Nokia is primarily a mobile phone company. Any additional activities are largely incremental."

As mobile email extends beyond the enterprise to a wider audience, cost and convenience will go more hand in hand. Neff added, "What customers want is their e-mail, and if there are lower-cost alternatives, that is a competitive threat to RIM. I am loyal to RIM, but I am really loyal to my e-mail."