ABI Predicts RIM Will Finish Second Behind Nokia for 2007 Smartphone Sales

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ABI Predicts RIM Will Finish Second Behind Nokia for 2007 Smartphone Sales

When it comes to smartphone market share, no-one can touch Nokia. But it looks like Research in Motion (RIM), maker of BlackBerry devices, will come pretty close for 2007. That’s the conclusion reached by ABI Research in its research brief, Research in Motion Strategic Review, released Thursday.
 
ABI is predicting that RIM will end 2007 with 10 percent of the smartphone market, making it the second largest such vendor in terms of device shipments—second only to Nokia. RIM’s market share, ABI reported, has risen steadily during the past five quarters (from 7.2 percent in the third quarter of 2006 to 9.5 percent in the third quarter of 2007).
 
So how can RIM capitalize on its current winning streak?
 
“In addition to operator partnerships, RIM needs to grow both its R&D and manufacturing capabilities to expand and increase its presence in markets beyond North America and Europe,” advised ABI analyst Shailendra Pandey, in the research brief. “Considering the growing opportunities in the Asia Pacific region, a manufacturing and R&D presence in India or China can help RIM in shipping more devices and reducing overall costs.”
 
ABI also noted that one of RIM’s strengths is a consistently high and stable average selling price (ASP) for its devices. For 2007, ABI estimates that RIM’s ASP for smartphones is $345, significantly higher than the overall industry average of $248. This demonstrates that, if the feature set is right and the device is well-executed, consumers and carriers are willing to support higher prices.
 
What do you think—will RIM catch up with Nokia during 2008?