RIM abandons smartphone battle

BlackBerry for business

BlackBerry maker Research In Motion (RIM) will be withdrawing from its battle with iPhone and Android for a dominant position in the smartphone market to concentrate on its business users instead.

The BlackBerry was first introduced as a phone for the corporate environment, marketed as a device that employees could take and use within their business surroundings. However, an attempt to widen its audience was not entirely met with success.

RIM has struggled to gain a strong position with its touch screen devices and tablets due to poor selling figures. Meanwhile, recent problems including BBM usage during the UK riots in August, a RIM service outage in October and drunken employees causing a flight to divert in December have also blighted the reputation of RIM.

After losing billions in market value, Thorsten Heins took over as chief executive officer in January 2012. The company will be conducting a strategic review of its products and services in an attempt to stabilise its position in the smartphone market. With regards to returning to the original marketing model, Heins said: "We can't do everything ourselves but we can do what we're good at."

A losing quarter for RIM

RIM has also released its Q4 results, highlighting exactly why the company is abandoning its battle for a dominant position in the smartphone market. The quarterly revenue is down by 19 per cent from Q3 and 25 per cent from the 2011 Q4.

Natalie Booth, assistant marketing manager at theEword said: "As the iPhone and Android devices are continually updated to excite both new and existing customers, RIM were playing catch up with their competitors. Targeting a niche audience could be the key to stabilising its position in the smartphone market."