RIM, a company which was once dominant in the smartphone market, seems to be unable to keep up with the likes of Android and Apple’s iOS. Now, it would appear that RIM may be considering a new direction for the company.
According to a recent report by The Telegraph, who spoke to RIM’s CEO, Thorsten Heins, RIM is considering licensing their new BlackBerry 10 OS to other manufacturers.
“We don’t have the economy of scale to compete against the guys who crank out 60 handsets a year. We have to differentiate and have a focused platform. To deliver BB10 we may need to look at licensing it to someone who can do this at a way better cost proposition than I can do it. There’s different options we could do that we’re currently investigating.
“You could think about us building a reference system, and then basically licensing that reference design, have others build the hardware around it – either it’s a BlackBerry or it’s something else being built on the BlackBerry platform.”
The Potential Benefits of Licensing BB10
This could actually be a good move by RIM. Their new BlackBerry 10 platform is expected to launch next year, and giving other manufacturers the opportunity to produce devices based on BB10 could actually help the platform grow. By licensing BB10, RIM could potentially reach a broader audience without the need to manufacture a large number of devices themselves. This strategy could allow RIM to focus on software development and innovation, while other companies handle the hardware production.
Licensing the BB10 OS could also lead to a diverse range of devices in the market, catering to different segments and preferences. For instance, manufacturers could create BB10-powered smartphones with various form factors, price points, and features, making the platform more accessible to a wider range of consumers. This approach could help RIM regain some of its lost market share and re-establish its presence in the competitive smartphone industry.
Challenges and Considerations
However, there are challenges and considerations that RIM must address before moving forward with this strategy. One of the primary concerns is ensuring that the licensed devices maintain a high level of quality and performance. RIM will need to establish strict guidelines and standards for manufacturers to follow, ensuring that the user experience remains consistent across all BB10 devices.
Additionally, RIM will need to invest in marketing and support to promote the BB10 platform and educate consumers about its benefits. This includes building strong relationships with carriers and retailers to ensure that BB10 devices are widely available and well-supported. RIM will also need to provide timely software updates and security patches to maintain the platform’s reputation for reliability and security.
Another consideration is the potential impact on RIM’s brand identity. By licensing BB10 to other manufacturers, RIM risks diluting its brand and losing control over the end-user experience. To mitigate this risk, RIM could adopt a co-branding strategy, where licensed devices prominently feature the BlackBerry name and logo, reinforcing the association with RIM’s legacy of quality and innovation.
In conclusion, licensing the BlackBerry 10 OS to other manufacturers could be a strategic move for RIM, allowing them to expand their reach and focus on software development. However, careful planning and execution will be essential to ensure the success of this approach. By addressing the challenges and considerations outlined above, RIM can leverage the potential benefits of licensing BB10 and position itself for a successful comeback in the smartphone market.
Source Gizmodo
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