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The real reason RIM hasn’t yet competed with Apple

Written on:February 13, 2012
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People were saying we can’t make powerful phones like Apple. Yes, we can, but we couldn’t believe consumers would put up with that kind of battery inefficiency and that kind of network inefficiency.

Much like I wouldn’t try to manage a business school, Roger Martin, dean of the Rotman School of Management at University of Toronto, shouldn’t be explaining why Research In Motion hasn’t yet fared well against Apple. The RIM board member offers up his viewpoints in an inteview with Canada’s The Globe and Mail. Clearly inefficienies in the iPhone’s battery and supporting networks have been “put up with” quite a bit: To the tune of more than 182 million iPhones sold through the end of 2011, if my math is correct.

With the iPhone’s average selling price well past $ 600, Martin may want to whip out a business calculator to do the figures on Apple’s revenues and profits from the handset. That’s what I’d do considering that 79 percent of RIM’s total revenues came from hardware sales in the final quarter of 2011. And let’s not even get started on the Playbook vs iPad numbers….

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