Blackberry - iPhone Battle

Before look at the battle between Blackberry and iPhone, let's check the business model of each great brand first.

Blackberry

Consumer users seldom use Blackberry as the monthly service charge is very high with the support of the unique push email service. And the charges are often based on the usage of the email data size which is about a few megabyte. Also, the voice plan is charged on top of the service charge which avoids many consumer users even think of buying it. Even the price of the device itself is not expensive. Most likely, it's about 2 to 3 thousands. However, the functionality and usability is not that powerful as other famous brands, e.g. Nokia, SonyErricson, Samgsung, LG, Motorola, which provides lot more great functions like digital camera, personal digitial assitant functions, third-party application.

How Blackberry does it's business and gain the revenue? The main idea of it's success focuses on the business and enterprise users. Let's see the blackberry devices first.

- Blackberry Device
RIM's product development is quite fast as they release new BB devices frequently to meet different customers' needs and wants. Some got more memory, faster, some are sleek and thin. However, the main function of blackberry is still to receive the push email automatically. Push email is a bit different from the outlook. Any incoming email will automatically be pushed to blackberry device by the blackberry server.

So that businessmen and enterprise users have different options for the push email solution for their repaid use of email which greatly improve their speed of reading and replying any email for their business. However, many users reported that they will also have another cell phone or smartphone for their daily life, which is embarrassing for the blackberry users as they need to bring 2 devices at the same time and cost much inconvenience. That's not the original idea of blackberry service which promotes 1 device satisfies all customers' need.

- Blackberry Server & Service
All blackberry users got to pay for the monthly service charges when they use the push email. By the way, everything single telecom got to setup their own blackberry server which will pay RIM the server charge, and the monthly service charges. That means RIM got three possible way to gain the revenue.

They are:
Server charge + monthly service charges + Device price

These 3 components comprise the overall revenue for the RIM, Research In Motion. That's why it's stock price goes up that high. Wow!! Morever, if the enterprise wants more control of the email system, the enterprise can pay another charge for setting up their own blackberry server. Bingo!! That's their business model. Therefore, once the blackberry service is promoted to new countries, e.g. China, it's service grows rapidly. Now about 12 million users are using BB service. It's a huge success.

iPhone

Let's talk about iphone. iPhone got a relatively simple business model, selling devices to consumer users directly and share the revenue with the telecom through the monthly service charge.

iphone charge + monthly service charge

Consumers would buy great devices and gadget especial for those well-known and popular smartphone. iPhone has great reputation all over the world. Even Apple didn't put that much effort in advertisement, iphone is still the hotest topic. It provides great user-friendly interface, intelligent and usable web browser, powerful ipod music playing function, lovely digital photo album, great email program, elegant video playback, .......

Then, people love to buy it and promote the iphone style to their friends and colleages. However, can it sustain such strong sales forever? As you know, the technology changes rapidly, lot more smartphone will be launche in the future which deviates the iphone sales. Ok, that's also the problem of blackberry, right? Yes. It's true. However, since business users only blackberry as a complete email solution, they will keep on buying blackberry to keep RIM strong sales. Business users can sustain a much longer lifecyle for the service and the devices. So iPhone can't compare with Blackberry directly as Blackberry always depends on stable and stubborn business users.

Enterprise Move for iPhone

Tomorrow, 6th March, will be Apple's event for the SDK and the roadmap for the enterprise iphone solution which greatly help to sustain it's business and growth throughout the world. Let's see how it goes and what funny functions will be released. That's huge risk towards Blackberry and windows mobile. How they respond? haha!! The winner is still us, the customers, to get the latest and great smartphone with cutting-edge technology and interface.

Macbook Air Dilemma

When Apple launched the Macbook Air in January, people around the world seemed a bit skeptical about it's demand and uniqueness. They complained that Macbook Air doesn't have a DVD-drive, just 1 USB port, no firewire, no removable battery. Yes, they're right. What's more?

It's thin, sleek, stylish, big screen, light in weight etc........

Originally, my friend, mac fans and my other friend, PC guys also thought it's just another cool gadget but not useful and demanding. Afterwards, the physical Macbook Air reached all the stores and ppl try it in their hand. Then, WoW themselves.

"How come it's so sleek and thin? It's like no weight and provide big screen and comfortable full-size keyboard. Oh! I can make it for my work. Cool!! " screamed by my mac and pc friends.

What happen? They just said it's no attractive before. Now they are really thinking of buying the Macbook Air. What's in their mind? That's the difference between your thought and real experience. What we think is somehow different from what we do in real life. That affects our decision for many times. It's Macbook Air's unique and usefulness, which was designed thoroughly and met with customers' demand. That's strength and opportunities that it has.

Next time, if you say "I won't try it or buy it", let's think for a while and try to experience the product to judge your blink.

Me? Oh yes. If I have enough money, will buy it of course. haha!!

Change of Business Model (HK Music)?

Image from PCCW Netvigator MOOV

HK's Muisc Industry is extremely slow regarding the technological changes in the way of buying songs.

Recently, we can only find a few local music companies entering the digital music age. They still enjoy the past glory days in selling physical CDs and expect the huge profit. Song BMG, Universal, EEG are the famous local music companies which are poorly planning their future path for the hugely demanding internet world.

They would complain that the online people are most likely to download the songs freely, and of course, without any payment. They indicate that the downloading songs would ultimately damage the well-foundation of the music industry since ppl won't buy any songs online. However, this statement is absolutely untrue and exaggerated.

Let's look at the football gambling market in HK. In the past, ppl didn't find any legal channel to gamble on their favourite football teams round the globe. They would choose to gamble in those illegal gambling host and put great amount of money in the illegal market. HK government nicely investigated the problem and implemented a legal channel for football gambling in HK by setting a football gambling division in HK jockey club. What happen then? The football gambling division grows rapidly and attract many guys from illegal channel to use the legal gambling service. And of course, those illegal gambling host suddenly lost many of it's perfect clients and lost the market share. What's it? It's all about economics.

Then, come back to the HK music industry. What happen to them? People loves to download their favourite songs in their MP3 player. What do the companies react? Just avoid them and falsely neglect the development of the digital music in HK? This doesn't make sense. As long as HK didn't provide proper and legal channel for those music lovers, internet guys will keep on downloading illegal copies on the web since they got no proper and easy channels to buy songs. They would try many tedious effort to download songs. However, this doesn't mean they are not willing to buy songs and spend money on the market. If the market provides an easy way and reasonable price for the digital songs, ppl must welcome those services and enjoy it.

Also, the problem is not only for the music market, and affects the movie and all audio and visual contents in the market. If you just stay in the old-glory days, it will only push you to the edge of crisis and lead to the death of the business.

Currently, we see a few popular ways in buying songs in the internet. They are:

(1) iTunes - Overwhelming free digital content delivery platform with the unique support of ipod music players and apple TV. Unfortunately, no service in HK up to now.

(2) Amazon MP3 - an easy and open platform which generally supports for all different music player.

If Hong Kong local music industries can aggressively enter this market and sell their lovely songs for HK and international users. That would be mostly desired and benefited by all the people.

Actually, some music companies would like to enter the digital music market in another way to cooperate with the individual internet service provider, e.g. PCCW Netvigator's MOOV service which is greatly attractive as they provide all different local songs and digital content for their users with online streaming technology. However, that's another small market that people would love and enjoy since they need to get online and play it all over the internet with specific PC environment. This would hugely decrease the number of potential clients and pull them out of the proper and legal channels for the digital contents.

If you want to get to know the international trend of the digital song market, let's check the following web site for more idea:

When will iTunes replace Wal-Mart as No. 1 music retailer?
http://www.news.com/8301-10784_3-9880001-7.html?part=dht&tag=nl.e703

My Project Management Milestone

Yesterday, 26th Feb 2008, I passed the PMP, Project Management Professional exam.

Thanks God! That's a huge milestone in my project management career. I've spent about 20K and a year to develop my PM experience and knowledge. Now I get the recognition of the PMP which is absolutely an important milestone in my career and life.

It's for sure helping me to move on and pursue further achievement in my career and business. No matter it's IT projects, party projects, interior design project, Now, I am confident to pick-up any kind of projects and have a try. (Of course, it's challenge but worth for a try)

If you guys want to become somewhat manager, it's no doubt I suggest you take the PMP course and have that exam which inspire and make you aware of different aspect and knowledge area in holding a project. From now on, I will keep on posted my experience in project management, business ideas, or anything related here and share my views and thoughts.

Cheers!! Good Luck!!