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UPDATED 11:48 EST / NOVEMBER 21 2011

New BlackBerries Already on the Decline, Windows Phone 7 Market Intensifies

RIM got a bit of attention during the initial days of its BlackBerry 7 product line release. Right now, however, tides are beginning to turn. Emasculating their glory is the nearly incessant growth of the iPhone, and the much anticipated release of Samsung’s Galaxy Nexus in the US, topped by the buzz surrounding the upcoming devices from Nokia, Samsung and HTC that runs on Windows Phones 7.

Even in their stronghold in India and Indonesia, the situation is unhealthy, thanks to Nokia’s Asha. Its price sits lower, and it sure is eroding RIM’s low end market, though Walkley’s previous examination speaks of a growing demand for the BlackBerry Bold. In addition, RIM’s new BBX smartphones won’t launch until mid-2012, indicating a similarly tough situation for the company over for next year.

“Our recent checks indicate slowing global sales with continued weak consumer sales in the U.S, says Canaccord analyst T. Michael Walkley. In fact, our checks indicated weaker sales to consumers for BlackBerry 7 models at Verizon, T-Mobile, and Sprint as those channels remain dominated by iPhone and Android smartphones,” Walkley wrote in a research bulletin to clients.

“Further, our checks indicate slowing global sales of all BlackBerry 7 models, including the Bold 9900, post the launch of the iPhone 4S and price reductions for the legacy iPhone 4 and 3GS.”

Windows Phone 7 Milestone

Microsoft’s Windows Phone 7, on the other hand, celebrates a milestone of 40,000 applications in its Marketplace. There was a dilemma during the early days of the platform’s launch, since the adoption was not as openly welcomed in comparison to Android and iOS.  Developers are slowly catching the drift, however. And it’s been partially due to Microsoft’s big push to lure developers to Windows Phone 7, especially after HP dropped webOS.

Recent developments show that Windows Phone will gradually pick up in 2012, as its phones feature cheaper hardware alternatives, such as 4G LTE and NFC capabilities. According to Gartner and IDC, Windows Phone 7 is set to conquer the second spot as the most widely used mobile platform by 2015.  The success is partly credited to Nokia, who laid a wager and embedded the mobile OS into its Lumia 800 and 710 smartphones.

The benefit is mutual though. Nokia was unsatisfied with Symbian and MeeGo, they’re market was in the dumps and they wanted to make a comeback. Windows Phone 7 was the missing piece. Nokia is now targeting the lower end market, and plans to manufacture Windows 8 tablets to compete in the ever intensifying tablet market as well.


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