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Mobile pioneers RIM and Nokia struggle over growing competition

Research In Motion (RIM) and Nokia are currently adjusting to the growing competition brought about by giant newcomers Google and Apple with their smartphones and tablets.

The two wireless communication pioneers that were the top contenders in the mobile phone industry are now “fighting to regain balance” according to reports considering that the new mobile devices (Google’s Android, Apple’s iPad and iPhone) have changed the face of the game resulting to a successful launch for competition.

An independent technology Analyst Jeff Kagan relayed that RIM and Nokia are now struggling with issues of PR, advertising and marketing targets which are the fundamentals of success in this industry.

The evolution of the market calls for drastic changes according to Analyst Ramon Llamas. He reiterated that the two companies should upgrade their operating systems to keep at par with the new competition.

A report revealed that Nokia is developing “Meltimi”, a new operating system that will be used for cheaper smartphones. This provides an avenue for Nokia to enter the lower-priced segment. It is also a sign that the Company is staying away from high-end smartphones.

Another report revealed that a halt has been made on RIM’s production of the PlayBook tablet that uses the QNX operating system, although the Company denies the allegation. The schedule for the PlayBook update is set this month.

Analyst Collins Stewart explained that for the second quarter RIM only sold 200,000 PlayBooks, which is alarmingly low from the first-quarter sales of 500,000. The Company currently ranks third in the U.S. market behind Android smartphones and Apple’s iPhone respectively.

The production of PlayBook, according to analysts is RIM’s reaction to the continues decline of its smartphone sales. Kagan shares his opinion that the Company’s losing key senior executives is a major contributor to this decline. He added that a refocus on RIMS core customer group is imperative. And a refresher should be done fast before things get worse.

Moreover, the main marketing challenge for RIM is creating a bridge for business and consumer markets according to the Company’s Ryan Bidan.

As for Nokia’s lower-cost smartphones, Kagan predicts that this will have a better chance of success compared to RIM. Therefore, the latter should have a speedy update of technology.

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