At least a couple of times now I have mentioned on the SMRpodcast that Research in Motion should partner with Amazon to bring their ecosystem to the BlackBerry PlayBook and RIM’s next-generation BlackaBerry 10 operating system.
Here is a short list of 5 reasons why…
1. RIM has no ecosystem and needs one desperately
The biggest issue the BlackBerry PlayBook has, less the embarrassing absence of an email client, is the lack of applications, books, and media that people actually want and use.
There is no Netflix, Hulu, or any other streaming video application of consequence. There is no Kindle or Nook reader app (Kobo just doesn’t count). There is no real music purchasing service that people have heard of and the application selection on the PlayBook is abysmal which is why RIM will support Android Apps in BlackBerry PlayBook OS 2.0.
Amazon’s ecosystem addresses all if this immediately…
2. Amazon doesn’t see the BlackBerry PlayBook as competition to the Kindle Fire
Most analysts agree that Amazon’s margin on the sale of the Kindle Fire is nil at best and more probably is sold at a loss of $3 to$10 per unit.
Amazon CEO, Jeff Bezos, last September said that even though Amazon’s goal was to make a profit on the Kindle Fire, as a retail company, Amazon was willing to live with a smaller margin than most electronics companies would.
Amazon’s goal with the Kindle Fire is to sell as much music, video, and books as possible. Amazon would like to see every Kindle Fire owner turn into paying Amazon Prime memberand user their tablet as a virtual showroom for all the goods and services Amazon has to sell.
Amazon’s goal as a company is to do these same things regardless of if you have a Kindle Fire or not and wouldn’t mind at all if BlackBerry users turned to Amazon for all their media needs on the BlackBerry PlayBook and upcoming BlackBerry 10 devices.
3. The BlackBerry PlayBook could be a proving ground for higher end Kindle Fire tablets
The Kindle Fire is a very low end piece or hardware. The hardware in the PlayBook is actually quite good and can act as a model for Amazon on how its ecosystem will play on hire end Kindle Fire tablets.
4. Android App submissions to BlackBerry App World haven’t taken off as expected
There is no shortage of Android App developers creating good quality Android Apps. There is, however, a shortage of Android App developers resigning their Apps and submitting them to BlackBerry App World. The Amazon App Store will get quality Android Apps in front of BlackBerry users more more quickly.
5. Could facilitate a deal putting BlackBerry services on Amazon hardware
What if, as part of your Amazon Prime account, you got access to BlackBerry Email, BlackBerry Messenger, and access to other BlackBerry services?
Android isn’t going anywhere but up and will be the biggest player in mobile beyond the foreseeable future. Amazon will continue to be a player in the Android space, but, will eventually have to offer more than the cheapest hardware that is good enough.
RIM is open to licensing options and Amazon already has a subscription service that people sign up for outside of their mobile carriers. BIS services on Amazon hardware could be a big deal for both Amazon and RIM…
I can think of a few other reasons why bringing the Amazon ecosystem to the BlackBerry PlayBook and BlackBerry 10 would be a good thing for RIM, however, I will leave those for the comments.
Let us know what you think, is this a deal RIM should pursue?
I agree with points one, three, and four. Two and Five seem like they would be of more benefit to Amazon than to RIM.
Why on earth would Amazon want to license anything from RIM when they can just keep using Android for free? The only reason BBM is so big on the BlackBerry is because it is one of the few applications that doesn’t absolutely suck compared to apps that you can get a dime a dozen on other platforms…
I don’t think Amazon would be licensing anything from RIM actually. It would be a Kindle “Inferno”/BB Playbook/BB 10 phone with BB hardware, BBM, BES/ActiveSync, and Amazon’s app store. Right now the same chassis is used for both Kindle Fire and BB Playbook. The Amazon CEO is fond of BB and likes to mimic their design. Why not have a true marriage? Hell, most people wouldn’t even have to know that RIM is making the device. They would just see a similarity between BB phones and the tablet maybe. They wouldn’t have to go it alone and they would instantly address their Achilles issue right away. Because if BB 10 came out tomorrow with the baddest specs ever, but had no apps, it would still be DOA.
I don’t know why you even write a BlackBerry blog if you are only going to be negative on RIM.
1. RIM’s ecosystem makes more money than Androids so I don’t think it is a problem.
2. The Kindle Fire doesn’t even compare to the BlackBerry PlayBook. No mic, no Bluetooth, no HDMI, half the processing power, 1/2 the memory at best. The only thing that comes close is the screen.
3. Point three is redundant. You admit that the Fire is crap hardware compared to the PlayBook.
4. OS 2.0 isn’t out yet. Every Android App on the planet will get their apps in App World so that they can have a chance at selling them and making money as compared to Amazon giving their hard work away. 13% of Devs in App world have made over 100k selling their apps.
5. Amazon knows the value of RIM which is why they tried to buy them back in the summer. They know that can’t compete with Apple with their crappy hardware so they need world class services from RIM. Amazon needs this deal not RIM, so, this point makes no sense…
Why don’t you just start a new site call Androidarkable or something because you clearly aren’t on the same page as RIM…
I appreciate your comment, but, I respectfully disagree with everything you said.
This is a BlackBerry blog, and I am somewhat pro BlackBerry in my opinions, however, I don’t offer blind loyalty to any company.
RIM has messed up on a lot over the passed several years and poor decisions have caused harm, quite possibly irreparable harm, to the company’s future.
This particular post wasn’t meant to dig at, or, pile up on RIM, but, offer an opinion on a strategy that I think might make things a little better for the company.
I am a glad that it has sparked debate.
Shouldn’t a blackberry blog be the device’s biggest critic? A person who loves something should be able to state what they dislike because they want to see it do better.
If the people who supposedly love it are bashing the platform all the time. How are people haven’t had a chance to form an honest opinion about the platform supposed to make an informed decision.
Do you really believe that I am bashing RIM in this post?
Robb,
You were not bashing them in this post at all. Just offering some sound ideas for their success. It is interesting to see, as of late, the whole “Tools not Toys” and Blackberry faithful argue anyone who offers alternatives beyond keeping things the way it is or even trying another platform. Anything not praising Blackberry is considered bashing. Somehow they don’t understand those “toy” devices are being used as a better “tool” by many every day. You gave viable options for it to become an even better “tool”. Take the strength it has and marry it with the strength of another platform.
The first part of every URL is www (WORLD WIDE web). Anyone who wishes to be informed can read a number of sources. They said nothing detrimental to someone wanting to be informed here. Why shouldn’t someone know that hey this platform is in transition right now. Maybe you do want to use another device until then. That is called honesty. You almost sound as if you are saying they should never speak ill of RIM. It’s their blog. You are free to not read it as much as they are free to post what they want.
It never ceases to amaze me how people he read the same words can have such differing opinions on what was actually said.
I am a big BlackBerry fan, and, couldn’t agree more with 4 and a half of your points… I do believe that Amazon competes with RIM.
I also think that that point 5 is a really interesting idea. If RIM is going to license, I could really see Amazon hardware running BlackBerry services.
I’m certainly didn’t get an MBA, and I probably don’t know enough about business and the smartphone industry to offer a deeply informed opinion on RIM’s prospects as an acquisition target. But speaking as a former BlackBerry user (now on iPhone) who follows the industry, I just don’t see the appeal…
I get that BlackBerry has infrastructure and (some) expertise that would be useful to other companies. They have a plant in Waterloo, distribution chains for parts, and a library of patents since they were basically the “original” smartphone.
But I hear people say that RIM should just get bought and do hardware. Some people go the opposite route and say they should just be a glorified software company (due to things like BBM, I guess). Yet, I just don’t think that RIM’s reputation for EITHER of those things is particularly that good. The build quality on their devices is pretty good, but they’re antiquated, inferior devices. And the total lack of imagination in their software and ecosystem (app store, etc.) was probably an even bigger failure than their reluctance to accept touchscreen devices.
So what’s the appeal of RIM to other companies who already do it better?
This is an absolutely valid question. Fact is, RIM hasn’t been bought out possibly for some of the very reasons that you state.
RIM does have, however, a user base of over 75 million users which is growing, albeit, not as fast as Android or iOS.
The appeal of RIM to a company like Amazon in my opinion would be buying into that 75 million+ BlackBerry user base as well as being able to offer BlackBerry services like email, and BBM to their existing Kindle and Kindle Fire user base.