Smartphone pie, XXL please

Good coverage on RIM today. In the wake of the iPhone launch hype, it is good to see folks showing some love to BlackBerry. While iPhone has buzzed the consumer consciousness regarding smartphones, BlackBerry for the better part of the last 5 years has been the only company genuinely delivering on the promise of smartphones. It’s breakthrough integration with corporate email servers, and the multiple generations of tweaking their user interface has made the BlackBerry one of the most successful portable devices, ever.

IPhone mania is great and all, and I admit it’s pretty awe inspiring. The fact that Apple pulled off such a hype campaign is a testament to their past successes in delivering great end-user experiences. But, their track record of making great connections with consumers’ emotions also sets a very high bar for themselves. Which is to say that the iPhone, however pretty, better darn well deliver a killer user experience, or it will be nothing short of a letdown.  People seem to ignore the fact that Apple is not alone in this space. It’s also not yet obvious how the iPhone’s innovations will create any sustainable advantage in the smartphone market.  What are the apps that people truly believe Apple has revolutionized?  Here are my early judgements on the iPhone’s wannabe killer apps.

Web Browsing? Still too small of a screen, and not much better than on other smartphones. EDGE isn’t gonna knock anyone’s socks off. No Flash. Verdict: While it looks prettier than other phone browsers, is web-lite ever a killer experience?

Email? Lack of corporate email integration is an issue. Soft keyboard is an annoyance. I suspect future iPhone models will have hard qwerty keys in the future — their corporate HCI guys won’t put up with software gee-whiz for long. Verdict: Not even close to killer. Lose the touchscreen keyboard, support exchange server, then we’ll talk.

Maps? Hardly a killer app that justifies a smartphone. BlackBerry, LG, and Samsung are already ahead in terms of GPS integration, and so far, no location-based services have been implemented or deemed vital… And again, what can Apple deliver uniquely that Google/BlackBerry/MS can’t? Verdict: Not killer… not yet at least.  Let’s see more here.

Integrated iPod? I just don’t buy it. My iPod is still a better device, right? I find it hard to believe that Apple thinks they can leverage their iPod platform to make a smartphone indespensible. These functions have not shown to benefit from any coupling in the past, and it isn’t apparent why they should be combined going forward. Verdict: Not killer.

My opinions… time will tell.  But I don’t think a bunch of “pretty neato” features cobbled together make a homerun device.  There has to be something that the iPhone does better than any other device.  Early reports do not signal this has happened.

Apple has educated a whole new swath of the market in a big way. So the iPhone is goodness for the whole smartphone market, enlarging the pie, not just taking a bigger a slice.

I had the feeling this was so, and recent articles confirm that RIM-themselves are thankful. Competition breeds innovation, and RIM, let’s face it, is plenty poised to give Apple a run. They have a robust pipeline, reasonable costs, a loyal user-base (Stats say that less than 6% of iPhone buyers were previously BlackBerry users), and a focus on the enterprise user, which is where multi-purpose devices today deliver immense value.

RIM is moving forward from a position of strength, an affordable, capable platform with a bona fide killer app, and a relatively loyal captive market. Apple moves forward on reputation and software usability street-cred, which loyalists will love.  But can it alone revolutionize the segment and lead to market domination?

Whispers of RIMM shares headed to $300 don’t seem that far fetched.