Blackberry vs. iPhone For years, Research in Motion’s (RIM’s) Blackberry has been dominant in the mobile device market. Its flexible design allowed users to check , make phone calls, and browse the Internet.
You can see a sign of RIM’s success by looking at its revenue, which is the amount of money coming into the company from sales of Blackberry products. This is before expenses are taken into account. (Source:
Blackberry vs. iPhone This table shows RIM’s revenue from 2000 to Throughout this period, the revenue shows an increase. (Revenue is in thousands of dollars.) YearRevenue: RIM 2000$84, $221, $294, $306, $594, $1,350, $2,065, $3,037, $6,009, $11,065, $14,953, $19,907,000
Blackberry vs. iPhone Here is the graph of the revenue data, which shows dramatic increases from year to year.
Blackberry vs. iPhone This graph shows the percent increase in revenue from year to year. Note that although revenue increases every year, the percent increase from year to year goes down after 2008.
Net Income takes into account the expenses incurred and gives a better indication of the success of a company. Let’s look at RIM’s Net Income from 2000 to 2011.
Blackberry vs. iPhone This table shows the Net Income from 2000 to Note that some years show negative values, representing a profit loss for that year. YearNet Income 2000$10, $6, $28, $148, $51, $213, $382, $631, $1,293, $1,892, $2,457, $3,411,000
Blackberry vs. iPhone This is a graph of the Net Income data.
Blackberry vs. iPhone Now look at the percent increase in Net Income from year to year. Not only are there negative values, but since 2006 the Net Income has been flat to declining.
While RIM continues to generate more revenue each year, it’s becoming more expensive for them to do so. As a result, their Net Income declines.
Blackberry vs. iPhone You can see that the start of RIM’s Net Income troubles coincide with the release of the first iPhone.
Blackberry vs. iPhone RIM’s Net Income problems got worse in 2008 with the release of the first Android phones.
Blackberry vs. iPhone The result of two huge competitive forces (Apple and the Android phones) has taken a toll on RIM’s stock price, which has been in continual decline.
Blackberry vs. iPhone Although RIM has a new CEO, it’s unclear what can be done to stem the tide of profit loss.