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For how much longer will Vivek Bhardwaj, BlackBerry’s Head of Software have a job?

If I were to guess, not more than 12-months to 18-months.

My prediction is that BlackBerry is in an unstoppable death spiral that will snatch not just Vivek Bhardwaj’s job but eviscerate many, many jobs at the Canadian company.

Air-Savings.com

Blackberry – Once a Star

Just six years back Blackberry had no challengers to its vaunted status as the preferred high-end phone, the smartphone to own and flaunt.

In the second quarter of 2008, BlackBerry had over 53.6% of the still-nascent smartphone market in the U.S.

Owning a BlackBerry was a badge of honor.

The movers and shakers in the U.S. swore by it.

In Washington DC, in New York City, in San Francisco and many places in between you’d see the corporate types, politicians and their aides, lobbyists and IT support guys frantically thumbing away on their BlackBerry.

So popular was the BlackBerry that a neologism called BlackBerry Thumb to describe a form of repetitive strain injury came into vogue

Even Barack Obama, the Republicans’ favorite “Kenyan” whipping boy, was seen in public on several occasions pecking away at his BlackBerry.

And then came Apple’s touchscreen smartphone, the iPhone.



Finito.

The sun started to set on BlackBerry, slowly eclipsing its prospects in the fast-growing smartphone segment.

Blackberry - End of the Road?BlackBerry – Few Takers

Losing Market Share

Today BlackBerry seems to be on its last legs.

If you listen carefully, you can hear the death-rattle of the company, a feeble sound bound to strengthen in the coming quarters.

BlackBerry’s market share in the first quarter of 2013 was a pitiful 2.9%, according to IDC’s latest smartphone OS survey.

Hell, even Windows phones now have a higher markets share than BlackBerry.

In my lexicon, there can be no greater humiliation or dimmer prospects for a mobile phone vendor than trailing a bumbling blunderhead like Microsoft in mobile OS market share.

Top Smartphone OS Shipments Q12013

BlackBerry misread the shift in consumer taste and complacently sat on its haunches ceding the market to Apple iOS first and then to Android.

BlackBerry – Last Gasps

With iOS and Android so powerful, here’s the big question gnawing at many minds – Is there room for a third smartphone OS platform like BlackBerry’s BB10.

I doubt it. Continue reading »

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Smartphones are entering the irritating terrain of gimmickry with features that most of us don’t care about, will not use or that just don’t work.

In a desperate attempt at boosting sales, most of the major smartphone vendors including Apple, Samsung and LG are lately guilty of trumpeting features that are completely irrelevant to 95% of the device’s users.

Air-Savings.com

Sony is the latest smartphone vendor to jump on the gimmickry bandwagon with a new device Xperia ZR that is supposedly great for underwater HD photography in fresh water.

Oh, yeah, I can see a million smartphone users around the world quitting their day-jobs and jumping into neighborhood swimming pools and lakes to become underwater photographers! :(

Sony Xperia ZRUnderwater Photography with Sony Xperia ZR – Really Useful!!!

Sony’s Waterproof Xperia ZR

Following in the footsteps of the gimmickry-laden Samsung Galaxy S4  smartphone, Sony today launched a new Android smartphone whose main selling point is its “highest level of water-resistance for capturing photos and Full HD videos underwater.”

Now how many of you buy a mobile phone with the intention of capturing photos or taking full HD pictures underwater? Continue reading »

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Selling electronic gadgets to Hanumans scampering down from coconut trees, mango trees, neem trees, guava trees, palm trees, jack-fruit trees and a thousand other kinds of Indian trees is not an easy task.

Not some thing your ivy league MBA types can even dream of handling.

You see, selling smartphones to a nation of 1.2 billion Hanumans requires familiarity not with Marketing 2.0 but extensive knowledge of Marketing 0.2.

Unfortunately, Marketing 0.2 is not listed as a course taught at any of the management schools.

No sweat. It can easily be learned by watching a troupe of Hanumans (monkeys) performing their simian antics.

Tawdry, Tacky, Trashy

When South Korean electronics giant Samsung launched its new Galaxy S4 smartphone in partnership with its Indian partner Reliance Digital in Mumbai, it rightly eschewed the slick, classy show for the downright tawdry, tacky and trashy.

After all, India’s 1.2 billion Hanumans have demonstrated time and again in their abiding passion for the Bollywood, Tollywood and Kollywood horror shows that nothing resonates better with them than the tawdry, tacky and trashy from the bottom of the gutter.

iPhone has a low market-share in India compared to the U.S. or Europe not because it costs a lot.

Au contraire, the real reason behind iPhone’s low market share in India is that Apple deludes itself that it’s selling the smartphone to humans in India.

Samsung, Nokia and the Chinese smartphone peddlers are smart enough to realize otherwise.

Any surprise that Samsung’s market share for smartphones in India is 43.1%, leaving its main global rival Apple kissing the dust with an insignificant presence.

If Apple has to have any hope of gaining market-share for its popular iPhone 5 in Mera Bharat Mahaan, it needs to pronto hire a bunch of hijras, snake-charmers and a gaggle of clowns from Bollywood, Tollywood and Kollywood and get them all together on one stage to scream iPhone 5 in unison at five-second intervals to the tune of Michael Jackson’s Billie Jean or better still the hideous Dhadang Dhadang number from Akshay Kumar’s vomit-inducing Rowdy Rathore.

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Smartphone vendors shipped 216.2 million units in the first quarter of 2013, the first time that over half the total phone shipments in a quarter were smartphones.

In the first quarter, smartphones accounted for 51.6% of all mobile phone shipments, according to market researcher IDC.

Chinese Danger

In a distressing development, two Chinese vendors Huawei and ZTE are among the top five smartphone vendors.

Given that Chinese brands operate completely under the diktat of the government, it’s not unrealistic to expect the military will force manufacturers to install backdoor exploits on smartphones meant for countries like India.

Unlike feature phones, smartphones can “call home” for updates via the Internet and can be exploited by the Chinese government and military for nefarious ends.

Indians are better off buying South Korean smartphones or Apple if they can afford it.

Smartphones Shipments & Market Share in Q1 2013 - image © SearchIndia.com

Beginning of End

Higher shipments of smartphones vis-a-vis feature phones in Q1 is a landmark event in the mobile phone business as it heralds the looming replacement of a single purpose device (phone) by a multipurpose device (computer).

I cannot imagine feature phones being around for more than two years.

Users are no longer content to have a device in their pockets or bags that can only make and receive phone calls.

Consumers want a phone that can browse the web, take high-quality pictures, send and receive e-mail and text, give them the weather, serve as a GPS, play music and video and do a thousand other things.

In short, mobile phone users want a computer in their pocket. After all, that’s exactly what a smartphone is – a mini-computer that also doubles as a phone.

Samsung is King

Samsung continued its leadership of the smartphone business with a market share more than that of the next four vendors combined.

Samsung shipped 70.7 million smartphones to Apple’s 37.4 million.

Samsung’s new Galaxy S4 smartphone, which has just started shipping, will help to extend its lead over Apple.

Samsung Galaxy S4

Hey, does anyone believe Blackberry or Windows phones will be around in three years. I’m not betting on them.

All Mobile Phones

Sales of all mobile phones, which include both smartphones and feature phones, were 418.6 million units in the first quarter.

Samsung was the leader in the overall mobile phone shipments too.

Mobile Phone Shipments & Market Share Q1 2013 - image © SearchIndia.com

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Apple reported results for its fiscal second quarter ended March 30,2013 and they are not pretty.

The company’s profits for the quarter fell 18% to $9.5 billion ($10.09 a share) from $11.6 billion ($12.30 per share) in the same quarter a year ago.

Apple observers note that this is the company’s first profit drop in over a decade, a period during which it turned into the darling of both consumers and the stock market.

Revenues in the quarter were up 11% to $43.6 billion.

Gross margin fell to 37.5% (47.4% in the year-earlier quarter).

Placating Investors

To mollify investors incensed about the 42% fall in Apple’s share price since hitting a high of $702.10 on September 19, 2012, the company announced it’d return $100 billion to shareholders by the end of 2015, mainly through share repurchase and higher dividends.

This represents a $55 billion increase to the company’s previously announced program to return capital to investors.

Apple shareholders have lost $284 billion since September 19 following the the tumble in its share price.

The company ended the second quarter with $145 billion in cash, much of it stashed away in overseas subsidiaries to avoid U.S. taxes.

iPhone Sales

Reflecting lower consumer interest in its flagship iPhone and increased competition from rival smartphones running the Android software, unit sales of iPhones fell on a sequential basis to 37.4 million.

iPhone Sales Fall in Q2 2014

However, iPhone sales were higher when compared to the 35.1 million units sold a year earlier.

Rival smartphones have larger screens, better cameras, more advanced features and are priced lower than the iPhone 5.

iPad Performance

Sales of Apple’s iPad tablet device in the quarter rose 65% to 19.5 million units compared to 11.8 million in the year-ago quarter but were off by 3.36 million units from the preceding quarter.

iPad Sales Fall in Q2 2014

Mac

Mac sales were down 2% in the quarter reflecting overall weakness in the PC industry as consumers flock to mobile devices like tablets and smartphones.

Apple sold just under 4 million Macs compared to 4 million in the year-ago quarter.

Third Quarter

For the current quarter, Apple is projecting revenue of $33.5 billion to $35.5 billion with gross margin of 36%-37%.

It’s anyone’s guess if Apple’s cash sops will energize its shares and give the company’s angry investors something to cheer about.

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In slightly over seven months, Apple shareholders have lost a mind boggling $283.78 billion.

I doubt there’s been anything like it in the history of stock markets.

Apple’s share price, which peaked at $702.10 on September 19, 2012, closed at $398.67 on Monday, April 22, 2013.

Apple’s market capitalization (total shares multiplied by share price) has collapsed from a stratospheric high of $658.15 billion in September 2012 to a more earthly $374.37 billion on April 22.

In other words, a tumble of over 43%.

What about Tomorrow?

Tomorrow could pile on more bad news for Apple shareholders when the company announces its fiscal second quarter results. Continue reading »

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