With news that the London rioters used BlackBerrys and the imminent launch of the iPhone 5, Maxine-Laurie Marshall looks at why the number one business phone is falling from grace
Whether you’re tech savvy or shudder at the thought of anything more complex than pen and paper, you would’ve noticed the slight obsession with smartphones that has a firm grip on society. The predominantly consumer product made its way into offices in around 1999 with the AA battery-run BlackBerry 850. But as the range of smartphones on offer increases, what impact is it having on the corporate mobile market?
Two of the big players in the smartphone market hit the headlines recently; the imminent launch of the iPhone 5 has Apple fans in a frenzy – helped by the possible PR stunt of a prototype left in a bar. Meanwhile, BlackBerrys were allegedly used by most rioters in the recent London disturbances. The paradoxes of the two news stories seem reflective of the companies’ positions in the corporate market. BlackBerry used to be the business phone of choice, so why has it fallen from grace? And what does this mean for brands seeking to use the mobile channel?
User shift
Is BlackBerry’s slump in popularity a result of marketing itself to a youth audience? Ronnie Nag, MD of communications provider Quore, says, “In a bid to market it as a must-have device for consumers, as well as business professionals, it has undermined the brand.” However, he adds that moving into a new market should not have been the main factor in BlackBerry’s falling popularity. “BlackBerry’s focus on the youth market was not unwise in itself. Its product placement strategy has gained considerable coverage over the years in youth press.”
So if the changing demographics aren’t to blame, what is? Ahmed Datoo, CMO of mobile software company Zenprise, has identified a change in user habits over the last year and a half. He says, “Most organisations used to issue BlackBerrys, but then employees started to bring in their personal devices and connect them to the IT network.” Datoo suggests IT departments, who once used to have the power to dictate what corporate phone you’d get, have been forced to accept the role reversal of being dictated to instead. “It’s about user preference.” This is something David Akka, UK MD of mobile and cloud based applications, Magic Software, agrees with. He says, “BlackBerry’s image may remain strong for some corporate IT departments but because of consumer market pressure with employees wanting to use their preferred handset, enterprises will be forced to widen their support beyond BlackBerry to alternative platforms.”
Security versus trendy
BlackBerrys have traditionally been a favourite of IT departments because of their security features. Ilja Laurs, CEO and founder of app store, GetJar, says, “BlackBerrys may still serve some really sophisticated corporate security needs. For example, it is the only device certified for use by the Government/military.”
Simon Hamilton Ritchie, CEO of mobile software development company, Matchbox Mobile, elaborates on this, commenting on the security issues of Androids and iPhones in comparison to BlackBerrys. “Android has malware, no built-in encrypted storage to protect my documents (only available on Android 3.0 tablets), and it is easy to remove all security restrictions from the phone (rooting the phone).
“iPhone is also easy to circumvent security, due to a flaw in all current phones (jailbreaking). Windows Phone has no built-in encrypted storage, and no secure private network (VPN) support. That still leaves only the BlackBerry as a reasonably secure phone without additional applications.”
However, there are some industry voices that disagree with BlackBerry’s security status. “BlackBerry is losing out to the iPhone and Android devices, which you can now secure to the same level as BlackBerry devices,” argues Mark Mason, CEO of Mubaloo. Security was the main factor that made BlackBerry superior for corporate purposes but other players in the mobile market have seemingly evolved to incorporate these factors into their offering. BlackBerry has sat on its laurels and now its competition has caught up. Ritchie adds, “Unless BlackBerry starts to innovate more, it is likely that all of the other platforms will provide a more compelling solution for corporations in the near future.”
Mason also attributes the higher number of apps for iPhones and Android as a possible reason for BlackBerry’s fall in popularity. While customers are expressing a preferred format for apps, so are the developers. Mason says, “The majority of app developers prefer to develop on iPhone and Android. The key with Apple and Google is that they have created great development platforms and given the ‘small’ developer access to huge markets to sell or promote their apps.”
The future calls
The extent to which the new iPhone 5 affects the corporate mobile market remains to be seen. In any case, Lars comments, “The reality is Blackberry is rapidly losing its position as a corporate phone leader and the only two real alternatives are iPhone and Android.”
Business mobile, and consequently the significance of mobile marketing, is expected to rise. Currently the corporate mobile is a productivity tool used mainly for email, web browsing and calendar access. However, Datoo expects companies to begin asking, ‘How can I do business differently with mobile technology?’ Mason is also optimistic about the future of mobile. He concludes, “We see a future where an enterprise will run its entire organisation via smartphones.”
Worldwide smartphone stats
- Symbian currently has a market share of 19.2 per cent; by 2015 it is expected to be 0.1 per cent.
- Android currently has a market share of 38.5 per cent; by 2015 it is expected to be 48.8 per cent.
- iOS currently has a market share of 19.4 per cent; by 2015 it is expected to be 17.2 per cent.
- Microsoft currently has a market share of 5.6 per cent; by 2015 it is expected to be 19.5 per cent
(Source: Gartner April 2011)
