The key to RIM’s great expansion from relative obscurity came in 1999 with the introductory release of the BlackBerry. This product quickly became the leader in this high-growth wireless communication industry as it offered emailing functions from its handset device, something that had yet been done in mass production. Since 2003, the number of subscribers has increased sixteen-fold truly highlighting the immense growth RIM and especially the BlackBerry has undergone. This product consists of 71% of the companies revenue which itself has increased over ten times since 2003.
The chart illustrates the importance of RIM’s
devices on the income and well being of the company.
Growth and expansion key's to RIM’s success. When there is success there is excitement. Investors will speculate that the future will continue to produce the same results. They completed the expansion of their manufacturing facility to meet growing demands and to physically establish themselves as a powerhouse. RIM added over 2000 employees during the fiscal year of 2007. The growth of the company has been substantial and the increased size of operating facilities and offices worldwide are essential in order to sustaining RIM’s rapid growth. In the fiscal year of 2007, the BlackBerry subscriber account base increased by 8 million. In the fourth quarter alone it added more subscribers than they had in the previous 5 years combined. These factors, when marketed, are essential in adding intangible value to the company. Since 2005, and really the first introduction of competition for RIM and its BlackBerry’s, over 25 companies have launched new mobile emailing devices slightly modified or altered to give it a competitive advantage. These companies include Microsoft Corp., Motorola Inc., Casio Inc., Novatel Wireless Inc., Sony Ericsson, Fujitsu Ltd., and Hewlett-Packard just to name a few. Different models of smartphones and personal digital assistants have been launched with updated versions following soon after. The main competitive models include the Danger Hiptop, HTC S620, Motorola Q, Nokia E62, Palm Treo 700 and 750 and the Sony Ericsson P900 series.
RIM also has competition in areas other than their hardware or handsets. Their software development, which accounts for 5% of RIM’s revenue, is in competition with Microsoft while their services and access to leading wireless data networks, which consists of 19% of their revenue, is in competition with Nextel Network....