Too little too late for RIM?

Ever since iPhone and Android devices began to flood the market two years ago, RIM's plunge into irrelevancy began.

BlackBerry was the first cool kid on the block in the cellphone industry.  Back in the days of flip phones like the RAZR, BlackBerry's were viewed as the iPhone's of their generation.  Full QWERTY keyboards, track ball, ability to send and receive email, and most importantly browse the web (something very few if any of its rivals could do).  Fast forward to 2011, the world of apps, apps, and more apps, RIM is scrambling to find a way to remain in the cellphone/portable industry.

Recent rumors are that RIM is looking to give their highly touted BlackBerry Messenger (BBM) application to iOS and Android marketplaces.  If you ask anyone who currently has a BlackBerry handset what is one of the great features, the first thing they will say is BBM.  BBM seems to be the holy grail of messaging.  It combines status updates, picture and video sharing, unlimited character length, received and read confirmation, and most importantly group messaging, all into one seamless messaging application that can only be found on RIM devices.  A solid group messaging application is something that both Android and iPhone users have been searching for since the devices first generation models, but not one they desperately need.

So why would RIM decide to hand over the software that is for the most part the only reason people use their devices?

By handing over this prized possession, unless they decide to integrate Android onto some of their devices, they have no reason to be in the handset game.  With similarly priced devices and plans, TV targeted ads and mainstream media coverage, the majority of consumers will be choosing Apple or Google devices when it's upgrade time (especially if the devices have access to RIM's best feature).  RIM is making what it believes to be a move to prevent its fall from the grace, only they don't realize they are a year late.

At the tech seminar in Austin coming up next weekend, SXSW (South by Southwest), where applications like Twitter and FourSquare were pushed into the mainstream, this year heavy emphasis appears to be on social applications geared towards groups.  Applications like Yobongo, Ditto, and Beluga all have features similar to BBM, and are FREE in the AppStore.  In order for RIM to stay afloat and turn a profit, there is no way they can make BBM a free app.  It would most certainly come with a large one time fee, or a monthly subscription based fee.

When users have several options to choose from to obtain relatively the same service, the majority will chose the free one.  Couple in the fact that Yobongo, Ditto, and Beluga (which was bought by Facebook) all link to your Facebook account (which makes inviting and finding friends simple), RIM is way behind the eight ball.

Had RIM decided a year ago to make this move they may have been credited with excellent foresight instead of desperation.  RIM has entered the dance just as everyone is leaving for the after party.  They have a long road to travel to catch up, and since they are traveling in a device and software that is 5 years behind the models it is going after, they will have a hard time doing it.