Research in Motion Current Situation

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Analyze and Record the Current Situation
Research In Motion is a Canadian telecommunication and wireless equipment company who’s doing business in smartphones and tablet, Blackberry is the best known brand owned by it. In terms of global wireless market environment, the subscribers of wireless had been 2.7 billion in 2006 and will over 3 billion by the end of 2007 according to the analysts’ expectation. The customers of mobile communication devices could be classified into 3 types, mainstream consumers, the prosumers and the enterprise. Even though the three segments had different priorities, the technology of these devices was converging. Smartphones as the newest generation product of this market could cost as much as 600 dollars. And the sales of smartphones had been growing in a geometric rate in recent years.

As the emerging field began in 1990s, all of the market features including market demand, replacement units and subscriptions were growing through recent years. There are several main competitors in this market such as Nokia, Panasonic, Motorola and NEC. Nokia has the highest market share with 48.1% in 2006, RIM ranked second but a way less than Nokia. Nokia and Motorola entered the wireless data market by leveraging their dominant positions in the cellphone industry. These two competitors had advantages on the global equity, strong financial resources, experiences in wireless communications and network carrier partnerships around the world. In 2006, Nokia had 37.1 percent and Motorola has 17.5 percent market share in cellphone market, which has been replaced by Samsung and Apple now, Samsung has 35.8% percent smartphone market share today.

In terms of organization, RIM had made notable increases in R&D expenditures over the years, increasing its spending from $62.6 million in 2004 to almost $235 million in 2007. And there were 34% of its employees working on research and development activities. In addition, the company established some...
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