RIM’s biggest challenge: mindshare

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San Jose, California. Colloquially referred to as the Capital of Silicon Valley and also the venue for this year’s BlackBerry Jam Americas 2012 (formerly BlackBerry DevCon) — a convenient location, or maybe there’s symbolism here: an embattled company having a call to arms a stone’s throw away from Cupertino.

As the event went on, I picked up on a sense of understated confidence. It wasn’t swagger. It’s the type of confidence rooted in assiduous work — derision be damned. While it’s too early to call RIM’s fate, I came away feeling optimistic.

We noted how RIM’s stock started to spike after the keynote last week. The company’s stock continued to rise up 17% soon after RIM reported an upward trend for the company’s revenue in its last quarter. Though not indicative of industry gains, it shows that RIM is still on track to fire off a shot with BlackBerry 10.

These are positive signals, but perhaps, only for #teamblackberry. The investors, the die-hards and the developers who would like to see RIM deliver them riches — RIM estimates four percent more revenue per app/per month than iOS developers, and about 40% more revenue than Android developers. But, what about everyone else?

For a brand to be deified, is it simply a case of having the best constituent parts? The best hardware. The best software. The best marketing campaigns. The best eco-system. The best earnings reports.

The iPhone 5 reveal provoked a decidedly anodyne reception from the public. Its design was said to be “evolutionary not revolutionary” and the new Maps application in iOS 6 has exploded into a full-scale clusterfuck, with Apple co-founder Steve Wozniak weighing in and calling it “disappointing.” As I’m typing this, CNN is reporting on the apology statement issued by Apple CEO Tim Cook — ouch.

Shortly before the iPhone 5 was revealed, Nokia clambered to show the world its new flagship device, the Lumia 920 which trumped the iPhone 5 with NFC and a higher resolution display. The jury is still out, but it looks like the iPhone 5 could also face strong if not overpowering competition from the 920′s maligned PureView camera. Nokia Maps are better too. Probably.

Despite all of this, there continues to be overwhelming demand for the iPhone 5. Analysts call the record breaking first weekend sales “below expectations” and Forbes warns that supply shortages, unconfirmed pre-order numbers and unrealised growth in China belie true demand for Apple’s latest.

No. It’s not about the best constituent parts. So what is it about then?

In the buildup to RIM’s first quarter 2013 unveiling of BlackBerry 10 — the smartphone maker’s panacea to it’s current lineup drought and subsequent market loss / investor doubt — I keep thinking about mindshare — that intangible and yet invaluable measure of a brand’s perceived worth.

In the hearts and minds of the lion’s share of consumers, Apple has become the number one aspirational brand. It has a glow, which despite flickering in the wake of things such as the new Maps application, continues to draw consumers in. It still has plenty of positive mindshare left in the tank.

Generating positive mindshare is not formulaic. It can’t be concocted with strategy meetings, clever marketing campaigns or even industry leading products.

Table stakes and then some

But, looking good on paper is important too. For example, RIM is quick to point out its strong position in emerging markets, but the glow will eventually fade if its best efforts are no longer seen as threats in markets where the upper echelons rule.

Luckily, BlackBerry 10 looks to be shaping up to hit parity — and then some — with its competitors in terms of technological prowess. I’ve had hands-on experiences with the latest builds of the BlackBerry 10 software and development hardware. I’ve seen the potential of the BlackBerry 10 eco-system — apps, games, movies and TV shows. Even if BlackBerry 10 doesn’t launch with hundreds of thousands of apps, the platform is light years beyond legacy versions of BlackBerry OS and capable of delivering rich user experiences. Critically however for RIM, it needs to cover the basics and deliver them with flair — it still hasn’t confirmed whether or not we’ll be seeing Skype, for example.

But, as the iPhone 5 case study shows, there is more to mindshare than features. So, what will it take for RIM to defy the fate that pundits so assuredly see in the tea leaves and make people believe in the brand again?

A glow of excellence and the evangelists

Recall Apple prior to 1997. It was flatlining. Then, there was a revival when Jobs returned. What sparked that renaissance? Apple didn’t suddenly have the best eco-systems, the best financials, or even the best products. There was a shift internally. Back then you could probably sense an understated confidence. Not swagger. The type of confidence rooted in assiduous work. Amid derision, under the guidance of a punctilious leader, a rhythm slowly began to emerge…

Apple’s new product line was focused and inspired, and the small group of desperate evangelists received new fodder for their gospel. The gospel spread and Apple won back positive standing in people’s minds. That aura of excellence (reality distortion field?) increasing mindshare, eventually leading to them becoming the most valuable company in the world.

That laser focus to deliver mind-blowing, not also-ran products and services is infectious and incendiary — it ignites a passion in everyone, from the employee to the consumer who is proud to be identified with the brand and what it says about them.

Something unique

Differentiation remains key. BlackBerry has unique enterprise solutions with Balance and Mobile Fusion, but unless you’re a CIO that’s probably not that interesting. For consumers however, BlackBerry has a strong people centric approach and it’s a feature BlackBerry 10 will build upon with RIM’s Gist acquisition.

Apple had “think different.” RIM needs to build out its own identity, which — in my opinion — is rooted in the social graph, with BBM at the core. It also has to deliver it with flair.

Hmm, licensing

I believe RIM’s nebulous statements on licensing also relate to mindshare. There’s something less exclusive about licensing your platform to other smartphone makers. I understand it as a survival tactic, but it’s just doesn’t feel very confident. Imagine a world where Apple licensed iOS.

Is it too late for RIM to regain lost mindshare and tip the scales?

Driving back to the airport I overheard the following conversation between two BlackBerry Alliance Elite members: “Last year [BlackBerry DevCon] was terrible, this year was much better, they are learning fast.”

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  • Googlethis

    Writer is trying too hard to sound smart…

  • http://twitter.com/martincarstens martin’

    Thank you for taking the time to comment, Kevin.

  • http://www.facebook.com/people/Susan-Antony/1784964840 Susan Antony

    “…I believe RIM’s nebulous statements on licensing also relate to mindshare. There’s something less exclusive about licensing your platform to other smartphone makers. I understand it as a survival tactic, but it’s just doesn’t feel very confident. Imagine a world where Apple licensed iOS….”
    Are you sure they were referring to other smartphone makers? They may have been referring to automobile makers or manufacturers of hospital equipment.

  • http://twitter.com/martincarstens martin’

    You’re right, they might very well be, but the fact that they haven’t dispelled the rumours makes me wonder. They are already heavily invested in the automotive industry as they now own QNX and Heins did mention possible healthcare applications — why not just put the smartphone rumours to rest?

  • frankzaman

    “It’s the first time in three consecutive quarters that RIM added cash to its reserves — ”
    No offense but this is wrong. RIM’s cash position has not decreased since last summer when they spent 800 million on Nortel patents.
    August 27th 2011 cash position was 1.4 B
    November 30th 2011 cash was 1.5 B
    March 3rd 2012 cash was 2.1 B
    August 30th cash was 2.2 B
    Earnings include lots of non-cash items like amortization and are not the same as cash flow. This is how you can have negative earnings but still add cash to the coffers like RIM has done. Otherwise good article, keep it up.

  • frankzaman

    Martin, I should add that it is great to see someone reporting on RIM that has actually done their homework instead of regurgitating the mass media’s headline grabbers. There are alot of moving parts to RIM and licensing is a biggie. Everyone always gets this one wrong. You said “. There’s something less exclusive about licensing your platform to other smartphone makers. I understand it as a survival tactic, but it’s just doesn’t feel very confident. Imagine a world where Apple licensed iOS”

    RIM’s big opportunity in licensing is getting all the embedded device manufacturers using a hodgepodge of QNX Software (Api’s, QNX CAR, coding themselves but still using QNX) to upgrade to BB10. Then instead of 80 million blackberry users, and hundreds of millions devices running QNX, You will have an ecosystem of let’s say about 500 million Blackberry 10 devices out there. That would be if you include all the medical devices, smart grid servers, and 60% of cars being produced today. Sure, they may license out the OS to someone like Samsung who could actually make a slim profit selling cheap BB curves, but it is the network effect they are after there.

  • http://twitter.com/martincarstens martin’

    Hi Frank, you’re right about RIM’s cash position. Cash reserves have increased. I meant to point out RIM’s latest increase in revenue (and decrease in previous quarters), which I failed to do. Thank you for pointing this out. I’ve corrected the article.

  • http://twitter.com/martincarstens martin’

    Frank, thank you, your comment is insightful and I appreciate you taking the time to put your thoughts down. It’s a valid point. Another commenter, Susan, also pointed it out. I probably should have made it more clear that I understand RIM’s opportunity with BB10 with regard to their various QNX properties. The fact that they haven’t outright fielded the questions relating to smartphone licensing, makes me wonder.

  • Matt

    Officially over for tacked on keyboard/mouse support?

    What about the fact that PC has the largest game catalog out of any platform in history… or the fact that you can easily mod said games? How about no mandatory subscription fee’s to access multiplayer on AAA titles?

    “But teh sohknee’s xcloosives!?!”… Well if you like the single player storyline driven experience which really only offers a fresh experience on the first playthrough then go ahead… but the multiplayer is still the same as everything offered by multiplats and in fact most of the time it’s just a copy/paste job from a previous title.

  • jwmii2

    Why not just use the Titan One from consoletuner.com to connect your controllers to your PC? It also allows you to connect a keyboard and mouse to your console and does so much more for only $60. Turn any controller into a rapid fire modded controller, create and use macros, cheats, and all sorts of cool stuff. Well worth the price of admission.

  • demfax

    Deranged blind fanboy hate.

  • Matt

    How so? I have XB1 and a A8 laptop. It’s just the truth and if you have a counter argument then come at meh brah.

    What exactly am I a fanboy of? Obviously I don’t have a PC… I did at one point own a 8350/680 combo but I sold it back in june so I’m obviously not a loyalist to the cause… I choose XB1 because of the controller and Halo 2 (mainly Halo 2 for the memories). So tell meh y ahm eye soo deranges blind fanboyz?

  • Gerry Nieves

    i guess he didnt read the developer of ds4 tool well enough to comprehend, all this is different and way off of the details the developer explains

  • demfax

    PCs and consoles have different pros and cons depending on THE CONSUMER’s needs. It’s only deranged fanboys (you) that think their opinions are “the truth” and try to prove them as absolutes.

    You are making up deranged strawmen to attack people who like playing games on consoles. Stop spreading fanboy lies, hatred, and FUD. It’s not healthy to hate pieces of plastic and people who like playing video games on them.

  • Matt

    Please get back at me when you have a point. K?

    My opinions are my own… yes, but I base them heavily on fact. If you want to attack them without even so much as a glimmer of intelligence then go on your way little lamb. There are true fanboiz out there that are dying for you to inform them of your fruitless knowledge.

  • demfax

    Another malicious, blind shill replying to facts, reality, and reasonable arguments by flinging feces and screaming.

  • Matt

    Just cowardly insults from someone with no point.

    You have given no facts.
    You have given no “reasonable arguments”.
    I doubt your reality is anywhere but in your own head.

    Go on now… I’m sure there are biased PS4 articles that need praising or XB1 hate articles that need your narrow opinions.

    “Oh the holy grail of our closed systems and handful of games at a premium”

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