BlackBerryMANU FERNANDEZ
The world's dwindling band of BlackBerry addicts are going cold turkey. A three-day global disruption has left users of the once-indispensable "CrackBerry" gadget struggling to access e-mail. The hassle isn't as severe as it once would have been: The growth of other mobile and tablet devices means people have alternative ways to get their information fix while on the move. But for Research In Motion, BlackBerry's embattled parent, it's more bad news it can hardly afford.
When RIM's North American network shut down in April, 2007, corporate customers were up in arms and action on Wall Street slowed to a crawl. The latest glitch has lasted longer and affected the whole world, but has not been as keenly felt. That's partly because the BlackBerry has been displaced by rival devices such as Apple's iPhone and others running Google's Android operating system. According to the latest figures from ComScore, RIM accounts for less than 20 per cent of U.S. smart phones. Just a year ago, the figure was almost twice as high.
Moreover, an increasing number of companies now allow employees to access e-mail from other devices. Many road warriors carry two phones, or rely on Apple's iPad to stay in touch with the office.
Investors have so far taken RIM's latest stumble in stride. Even as the problems spread to North America, the company's New York-listed shares increased slightly on Wednesday morning. The longer-term impact, however, should not be underestimated.
In a shrinking economy, companies may decide to save money by encouraging employees to use their own phones. Emerging markets, where RIM's most recent disruption started, are also an increasingly important part of the company's business. In the three months to the end of August, more than half its revenue came from outside the United States, U.K. and Canada. Corporate customers won't, and can't, dump RIM overnight.
Despite Apple's rise, most firms still rely on computers running Microsoft's Windows software. But the sudden loss of BlackBerry service can only accelerate the quest for alternatives. The danger for RIM is that when its system is up and running smoothly again, the addicts will be resolved to choose another supplier.