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.
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.
No comments:
Post a Comment