Vancouver Sun

Androids ready to take over Canada: report

RIM’S Blackberry barely holds No. 1 smartphone spot as Google, Apple chomp into market share

- BY MATT HARTLEY

TORONTO — Research In Motion Ltd.’ s Blackberry devices are still the most popular smartphone­s among Canadians, but that could be about to change.

While RIM maintains the No. 1 spot in the smartphone rankings in Canada, shifting market dynamics suggest the company’s hold on the top position is “tenuous at best,” according to a report from market tracking firm Comscore Inc.

Still, the appointmen­t of chief executive Thorsten Heins could signal a potential change in fortunes for RIM as the company looks to maintain its leadership position in its home market, even as its losses in the coveted U. S. market continue to mount.

At the end of December, RIM’S Blackberry­s accounted for about 32.6 per cent of the Canadian smartphone market, while Apple Inc.’ s IS platform, which powers the computer giant’s iphones, was the second most popular, with about 31.2 per cent of the market.

Still, although Apple appears to be hot on RIM’S heels, Google Inc.’ s Android software — which accounts for about 27.8 per cent of the Canadian market — is gaining fast and could soon take over the overall lead in Canada, just as it has in the United States and other markets.

“Over the past six months, RIM has lost six percentage points of market share with most of it going to Android,” the report states.

“It should be noted, however, that RIM’S January appointmen­t of a new CEO likely signals some upcoming strategic changes that may result in more innovative product offerings. Should this change in leadership and enhancemen­t in product offerings prove successful, RIM’S home market Canada represents perhaps the best opportunit­y to stem the tide and regain lost market share.”

In the United Kingdom, RIM ( 18.3 per cent) now trails both Apple ( 26.4 per cent) and HTC Corp. ( 18.5 per cent) in market share, while the company failed to crack the top three in the other markets where ComScore tracks user data ( including Japan, Germany, Spain, Italy and France).

Despite a disastrous year in the U. S., RIM’S Blackberry Curve 8530 was the fourth- most- popular smartphone sold in 2011.

A trio of Apple devices — the iphone 4, iphone 3Gs and iphone 4S — were the three most popular smartphone­s in the U. S. last year. In Europe, all five of the top five smartphone­s were either iphones or Samsung Galaxy devices running Google’s Android software.

Comscore’s 2012 Mobile Future in Focus report found about 9.1 million Canadians now carry some kind of multifunct­ion smartphone, while the U. S. smartphone install base grew to nearly 98 million.

Last June, smartphone­s began out- selling traditiona­l feature phones in Canada, a milestone the U. S. passed in July.

In February 2010, RIM’S Blackberry­s were the most popular smartphone­s in the U. S., commanding 42.1 per cent of the market, according to data from Comscore. At the same time, Google’s Android, a relative newcomer to the market, accounted for just nine per cent of the market, while the iphone’s share of the market stood at 25.4 per cent.

Since then, Apple’s share of the market has jumped to about 29.6 per cent at the end of December, while RIM and Google have effectivel­y traded places. Meanwhile, thanks to product delays, lacklustre marketing and a perceived inability to keep pace with its rivals, RIM’S share of the U. S. smartphone market has plummeted, sliding to just 16 per cent in December.

By contrast, Android has grown steadily, now accounting for 47.3 per cent of the U. S. market.

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