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Sunday, 1 July 2012

AT&T Approached RIM To Build An iPhone Competitor in 2010

The Wall Street Journal has a feature story detailing the missteps that led to RIM's downfall. While the reasons varied from lack of communication between the ex co-CEOs, mismanagement and the emergence of the iPhone and Android phones, the story reveals a few interesting details about carriers and what they thought of the iPhone.
Most carriers, no surprise here, didn't like that the iPhone was gaining popularity amongst their subscriber base, and that they would have to relinquish control to Apple in order to carry the iPhone.


The whole piece outlines how RIM ignored the changing market, refused to acknowledge internal as well as external signals, and lived in a state of denial until the entire market tide shifted to iOS and Android. Its most important customer base, the enterprise,
In RIM's latest quarterly earnings, the company announced 5,000 layoffs, a half a billion dollar loss, and the delay of its BlackBerry 10 smartphone OS to early next year.
 has also started adopting alternate platforms, although most of RIM's revenues still come from this segment.

So many carriers, anticipating the rising popularity of the iPhone, approached Research In Motion to develop a phone that could compete with the iPhone. The BlackBerry Storm was a result of Vodafone and Verizon asking RIM to build this competitor.
What's most interesting, however, is that AT&T, the carrier with exclusive US rights to the iPhone up till early 2011, also asked RIM to build a touchscreen rival to the iPhone. The BlackBerry Torch was the result of RIM-AT&T's collaboration. From WSJ's story:
 
[AT&T] approached RIM about a plan to develop a touch-screen rival to the iPhone, said two former RIM executives. The chief of AT&T's mobile division visited RIM's research and development team in Waterloo to stress how important it was for AT&T to have a successful BlackBerry product to sell, according to people familiar with the visit. RIM said the objective of the visit was to develop "a differentiated, unique BlackBerry experience for AT&T customers."
[...]
A RIM-AT&T collaboration resulted in the BlackBerry Torch, say people familiar with the effort, but it was hobbled by hardware and software shortcomings.

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