BB10 - Innovation or just another smartphone?

Finally BlackBerry (or should I call them RIM) launched BB10 software and two new phones – Z10 and Q10 on January 30^th, 2013. This blog is not a review of these phones or BB10 software platform but an attempt to understand company’s current innovation model and business strategy.
Lets focus on Z10. It is a pretty decent Smartphone with competitive features and design. Market was waiting anxiously for BB10 as most of the analysts predicted that RIM’s future depends upon success of BB10 generation phones. After months of delays BlackBerry launched a product that I would say is not disappointing but neither is a ray of hope.
Innovation is the mantra in technology industry and if you are in Smartphone business, you have to innovate continuously to attract customers who are curious, tech sensitive and impatient. Apple created Smartphone segment and lived up to the expectations of the customers and tech pundits not just once but repeatedly. Android (Read Google) enabled Smartphones (Read Samsung) smelled the opportunity and took advantage of following Apple as first followers. Most importantly Samsung and other Android enabled devices are following the path of continuous innovation (Check out Samsung’s new bendable screens) and pushing hard to overtake the Smartphone market Godfather Apple. However, once recognized as Smartphone giant, BB got lost in this race completely. They not only lost the opportunity of creating this market segment (understandable as they did not have Jobs) but also missed the bus by not jumping into this segment right behind Apple. Now they have come up with BB10/Z10 which is a competitive product but innovative? No way. You cannot call converting keyboard to touch screen and introducing an external battery charger innovation. Strong OS, security feature and user friendly texting were already part of BB’s strength before this launch. Most of the features are mere improvements of currently available smartphones features or BB phones itself. It will be interesting to see whether BB would be able to come up with BB11,12,13...launches every six months to one year or not(And obviously with even better features that can woo customers). People may argue that this is highly innovative product as compared to previous BB products, but who cares (except for few BB fans) that Z10 is better among BB products. Innovation is measured across an industry, not across one company’s products. BB could have learned from Amazon who forced Apple to launch iPad mini by creating another segment altogether in tablets market (anyone remembers Playbook??). I pity BB for appointing Alicia Keys as new Global Creative Director as this is not going to help them in improving their odds to become innovation leaders.  
BB10/Z10 needs to make money. BlackBerry has currently 6% market share with forecasts projecting 5.9% in 2016 (Source: please check here). They have to attract users to buy Z10 and develop those users as brand ambassadors. Is there any key feature in Z10 that will force Apple or Android users to switch? Forget about switching, why would first time Smartphone buyers consider Z10 as their first choice? iPhone users who have bought iPad and Mac would never leave iOS platform, iTunes and apps. Android is growing strong by improving their OS and adding more apps. Android phones provide plenty of choices in smartphone devices with a strong support by Google. With 70,000 odd apps, no strong music store, no strong developer community and potentially no other device in portfolio, is BlackBerry attractive option to switch? At least not for now.
BB is taking more than a month to bring this product in US market after showcasing Z10. This will disappoint even those users who are interested in this device. I highly doubt that customers would be lining up outside stores to buy Z10. Sales will surely increase after this launch but would that revive the whole company?
BlackBerry has a great history. They still have a strong business across globe with more than $ 2 billion in cash. But their struggle starts and finishes at home, North America.  Z10 is competitive but not one step ahead of any other phone. This is true specifically in current market where smartphone users are connected to a system that gives more value out of a smartphone than it’s market price. The only option for Heins and his team is to keep everyone on their toes and use innovation as fuel. I am not a BlackBerry hater. I believe turnaround of this company is possible but not by appointing a celebrity their Global Creative Director and following other companies innovations. True innovation with continuous cycle is the only option that will survive this company.  

Amazon's Kindle - From threat to opportunity

I remember when Apple launched iPad everyone, from tech gurus to market analysts, was wondering how Apple would sell this product in a market flooded by smartphones and laptops. But iPad caught everyone’s attention and one of Steve Jobs’ babies sold more units than anyone expected. It was pretty clear that tablets had a separate market space among other new tech gadgets. However it was not clear who will compete with iPad. Eyes were mostly on traditional software/hardware/electronics giants such as RIM, Google, Nokia, Microsoft, Samsung, Sony, etc.

Looking at today’s tablet market it is clear that iPad is still a front runner. However what is surprising is that the second most popular/sold tablet is from Amazon. Who would have thought that Amazon, an e-commerce giant, would jump into tablet market and become successful? Amazon’s Kindle is on fire and today they launched next generation Kindle. Looking at the product it is clear that Kindle is no more a rushed up and nervously made product. Amazon has made sure that the new Kindle Fire has best features at the lowest price. Moreover they have a few versions that have similar features and price range as iPad and may become a potential threat to iPad’s next generations.

Amazon did a great job in positioning first generation Kindle. It was simple, affordable and easy to carry. Those who did not want to spend too much money on iPad bought Kindle and they had a great experience using this device. It was great to see that Amazon did not go with “me too” product strategy unlike Samsung and RIM. The message was clear – Kindle was a different product for specific customer segment.

It is amazing to see how Amazon has forced its competitors to follow the path it has created. Google came up with Nexus following Kindle’s success having same features and almost same price range. Apple is planning to launch mini iPad targeting the customer segment created by Amazon. It will be interesting to see how Amazon will respond when this segment will become crowded (Remember cheaper products are easier to create and sell). Plus side is that Amazon is planning to make money by offering services on Kindle such as books and other apps rather than having thick margins on tablet itself. Apple may fight on this battleground as iTunes and Apple’s app store have a loyal customer base. But for others, the road will be full of obstacles.

Kindle is a classic example of how a threat can become an opportunity. Amazon read the trend earlier that users prefer to read books on electronic gadgets and Apple may take away Amazon’s market share. Threat of losing market share to Apple forced Amazon to come up with a product that is redefining a new market completely.