Insult to an already injured company: Research In Motion – R.I.P. 1999-2011

As Reuters reported Wednesday, the Blackberry outage that has swept through Europe, the middle East, Africa and India has officially spread to the united states.

Roughly half of Blackberry’s 70 million subscribers are affected in the outage which is due to a core switch failure in Blackberry’s infrastructure.

This outage couldn’t have come at a worse time for RIM, the manufacturer of Blackberry, as their number one rival, Apple, released their newest iPhone, the 4S.  As RIM was trying to recoup its reputation after suffering a loss of 4.3 million users last year in just the US alone, this is a kick to an already down and out manufacturer.  Having this outage spread across the ocean could leave Blackberry in a lurch in the US.

“With only about 16.5 million US users and an average loss of half a million users per month, unless something drastic happens, RIM could lose its entire US user base by the end of next year.”

Blackberry’s battle to gain the consumer market is well over as users are leaving Blackberry in droves for flashier devices with feature rich applications.  But what about the corporate market?  Blackberry still has a connection in the business front with their strong BES security features, but this could be coming to an end with many companies moving the cost of mobile purchases to employees and allowing them to add corporate email to their own personal devices.  This is especially evident with Mobile Device Management companies growing like wildfire offering BES equivalent security features on non-Blackberry devices.

The fallout from this latest RIM debacle could be the deathblow.


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