BlackBerry Torch fails to make a dent in iPhone and Android market share.

by Nick on August 20, 2010

A couple of weeks ago, before the release of the new Blackberry Torch, I wrote an article about how I believed that RIM’s new Blackberry Torch was not all that it was cracked up to be.  The new Blackberry Torch, in my opinion, did not close the gap in functionality between Blackberries and iPhones/Android phones.  And to top it all off, my main complaint was that the new Torch was only being offered through AT&T.

After writing that article, I went to my local AT&T store and ordered an iPhone.  I was told it would be close to 3 weeks before it would arrive (another testament to the iPhone’s success) but luckily it arrived in just three days.  After exactly one week of having my iPhone, I can safely say it is one of the best purchases I have ever made.  The web browsing, application variety and even the way the voicemail works are far superior to that of the Blackberry.  Apparently, I am not the only one that thinks so as Blackberry Torch sales have been horribly disappointing for RIM.

According to an article at CNNMoney.com, only 150,000 Torch smartphones were sold in the first weekend they were available compared to 1.7 million iPhone 4’s that were sold in their first weekend available.  That is more than a 10 to 1 difference and highlights the lackluster enthusiasm for the new Blackberry Torch.  In addition, Morgan Stanley downgraded RIM today, in part, because of a loss of market share to Google’s Android phones and Apple’s iPhones.  The downgrade specifically mentioned the poor performance of the Blackberry Torch.  As of the writing of this article, the downgrade has sent RIM’s stock price down by almost 5%.

Market share and stock prices can kind of be like an avalanche headed downhill.  Once they start, they can be hard to stop.  I have a feeling that RIM’s market share, along with its stock price, are headed down that path unless RIM can come out with a superior Blackberry smartphone sometime soon.  Pretty soon RIM may have to change it’s company’s name to RIP!

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