RIM's CEO sees iPhone as "dangerous"

updated 02:35 pm EDT, Mon July 9, 2007

RIM CEO on iPhone Danger

Research in Motion head Jim Baisilie believes the iPhone could be potentially toxic for the cellphone industry, according to a recent interview. The head of the BlackBerry firm points out that while AT&T has obtained a multi-year contract for the device, the terms leave the carrier out of much of the sales process and give it little influence over the customization of the phone's hardware or software. Apple may be putting AT&T -- and other networks -- in danger of becoming simple enablers for hardware from other companies, Balsillie warns.

"It's a dangerous strategy. It's a tremendous amount of control," he says. "And the more control of the platform that goes out of the carrier, the more they shift into a commodity pipe."

RIM's devices are built around the company's centralized BlackBerry "push" e-mail service but otherwise follow a conventional business model, selling exclusively through cellular providers and frequently shipping with customized software and logos stamped on to the device.

By contrast, Apple has so far insisted on a largely hands-off approach. The iPhone itself includes no branding aside from AT&T text in the menu bar and activates within iTunes rather than through AT&T's official stores or sanctioned resellers. Apple has also insisted on handling repairs for the equipment.

By Electronista Staff

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njfuzzy

Fresh-Faced Recruit

Joined: Apr 2001

07/09, 02:41pm | report spam | close reply

You have to be kidding me

If I have to choose who controls my phone, Apple or AT&T, the answer is the biggest no-brainer in the history of technology.

This is great for consumers.

schwie

Joined: Aug 2006

Duh...

Thats exactly why Apple and AT&T have it right. Apple can focus on their great hardware and user interface (of which AT&T should never touch) and AT&T can focus on making their nationwide network better.

He's just irked that he didn't think of visual voicemail first.

climacs

Joined: Sep 2001

07/09, 02:45pm | report spam | close reply

let's hope so

let's hope Baisilie is right. It would be dangerous for carriers, great for consumers. A lot of cellphone innovation is stifled by the carriers.

ClevelandAdv

Joined: Jul 2004

Dangerous?

It was dangerous having the carriers with any control over the way phones operate. They clearly had no idea as to how to implement features on cell phones. I have owned 3 phones with web, and email features but since my IQ is less than 150 I could not operate these features. IT took me 10 minutes to set up and use my email, phone book, web etc. on my iPhone.

legacyb4

Mac Elite

Joined: May 2001

07/09, 02:49pm | report spam | close reply

Roles

That's EXACTLY what should be happening; bandwidth is a commodity and that's what the carriers should be focusing on.

He's just pissed that Blackberry/RIM wasn't able to exert the amount of influence that Apple has over the carriers.

07/09, 02:52pm | report spam | close reply

buh-bye Blackberry,RIM

incidentally, one would think that a cellphone maker would be thrilled that Apple is busting the ridiculous paradigm of carriers telling handset makers what and what not to put in their phones.

In this case, Baisilie is seemingly siding with the carriers because he can read the handwriting on the wall. Apple will crush RIM within 5 years.

jogdish

Joined: Jan 2006

07/09, 02:54pm | report spam | close reply

Great for consumers

In order to find the truth in any statment made by an iPhone competitor, just turn their comment around to its opposite. This is great for consumers! With the iPhne, the industry is finally able to innovate and provide service without getting reamed (too much).

csi95

Joined: Apr 2005

07/09, 03:04pm | report spam | close reply

Is he serious?

Wait, so he's concerned that the cell companies will just be selling cell service, and won't be able to cripple my phone and sell me all of it's other "features"?

Sounds like utopia to me.

noibs

Joined: Jul 2007

07/09, 03:14pm | report spam | close reply

Wow...

Yeah...the cell phone networks are so loved by consumers...NOT!!!

I **LIKE** using my Macs and always have. And I will **LIKE** using an iPhone when I buy one. How many people really like using their cell phones?

Hey...Jim Baisilie...that sound you hear is a tiny little violin playing just for you. I hope Apple kicks your b***tt.

jimothy

Joined: Sep 2000

07/09, 03:19pm | report spam | close reply

Good for RIM?

If this ends up being true, why is Mr. Baisille so concerned? Wouldn't that be good for RIM (and Samsung, Nokia, Motorola, etc.)?

I ask this rhetorically, because I know the answer. Baisille is trying to suck up to the cell providers, warning them "Don't take a bite of that evil Apple!" And of course, he's not really concerned about the providers, but about his company's ability to compete in a future market where consumers will be able to choose a handset based on features (and price, naturally) instead of whatever watered down product the providers offer. That he's spreading FUD tells a lot about his confidence in his own company's prospects.

mr100percent

Forum Regular

Joined: Dec 1999

07/09, 03:22pm | report spam | close reply

then wahtt's RIM?

Correct me if I'm wrong, but doesn't RIM do a similiar thing, selling through a carrier, but all email goes through RIM servers anyway? Remember when all blackberries lost connectivity when their servers went down, regardless of carrier?

jpellino

Joined: Oct 1999

good lesson all around

att should be moving signals, apple and rim should be making phones that do what we want. case in point - att poisons the use of java permissions on their branded mot phones, rendering killer apps like salling clicker... useless. no reason, no workaround, no logic, just the decision of a company without any reason to do otherwise.

mmmdoughnuts

Joined: Feb 2006

07/09, 03:23pm | report spam | close reply

Talk about someone

smoking their own crack. This is hands down the biggest win for consumers. Cingular is the regulator of bandwidth. That is what they paid the US Government for - a licence to use MY governments radio spectrum. Cingular and everyone else are just realizing that they don't have control over what people access through it.

Herod

Joined: Jun 2007

07/09, 03:38pm | report spam | close reply

jim.....

were you holding your hand on your forehead making an "L" while making these statments?

what kind of cheese would you prefer with your whine?

dennisobell

Joined: May 2002

07/09, 03:41pm | report spam | close reply

...must not be named

In other news, Voldemort said today that giving Harry Potter and his friends "more control" over spells could be "dangerous for the future of the evil-magic industry."

lamsdale

07/09, 04:01pm | report spam | close reply

Irony

This is so ironic - the control that RIM have over their devices and service already leave the operators as basic connection providers. RIM design the devices and UI (with a little tweaking allowed for each operator), and RIM host the servers and charge the operators a monthly fee per device. Sounds like RIM are worried to me.

07/09, 04:08pm | report spam | close reply

This just in!

RIM is releasing a touch screen, V-cast blackberry, verizon 2 year exclusive contract to combat the iphone monster!

horay!

jcatma61

Joined: Nov 2006

07/09, 04:23pm | report spam | close reply

More of the same...

duh-duh-duhhhhhh. AT&T could really profit from more relationships like this one.

Here's a formula for RIM to consider: Cost of Apple Phone + Cost of support/features = 0.

UberFu

Joined: Oct 2002

07/09, 04:57pm | report spam | close reply

WTF Ever !

Good for Apple_

That's EXACTLY WHY I buy Apple gear in the first place_

It breaqks down take my s*** to the Apple Store and tyhey get on it and fix it right the first time_

My RAZR from Cingular breaks - I have to go thru some 3rd party company called LifePrice or something_ AT&T doesn't deal with any problems and neither will Motorola_

God - for all of it's faults - I Love Apple_

07/09, 04:59pm | report spam | close reply

Good for Apple_

That's EXACTLY WHY I buy Apple gear in the first place_

It breaks down - I take my s*** to the Apple Store and they get on it and fix it right the first time_

My RAZR from Cingular breaks - I have to go thru some 3rd party company called LifePrice or something that no one has ever heard of_ AT&T doesn't deal with any problems and neither will Motorola_

God - for all of it's faults - I Love Apple_

07/09, 05:00pm | report spam | close reply

also...

Who TF is RIM and this CEO anyway ?

Research in Motion ? Never heard of them_

l008com

Addicted to MacNN

Joined: Jan 2000

07/09, 05:04pm | report spam | close reply

umm yeah

just like all you other comments, this is great news. I had to hack my motorola-verizon phone just to be able to copy photos from the camera to my computer. Apple is preventing carrier-extortion, that is great.

robttwo

Joined: Nov 2005

07/09, 05:11pm | report spam | close reply

oh brother

Assilie is such a neutral observer, isnt he? Kind of like the head of Exxon saying hydrogen cars are bad for gas stations.

I am so tired of these alleged CEOs only business strategy being to "prophecy" how awful their competitors are. RIM had the market, they had the corner, they had the trend, they had the buzz. But like all dickless, ball-less coporations, they were afraid to do anything with it. That is what all these doofuses STILL dont understand about Apple. Pay attention, will ya? Innovative functionality with aesthetic appeal - and NO STANDING STILL. Its really quite simple!

johncarync

07/09, 05:13pm | report spam | close reply

a decade earlier...

Hmm...I can imagine a similar headline in 1994...

AOL CEO SEES INTERNET AS "DANGEROUS"

AOL's CEO believes the Internet could be potentially toxic for the online industry, according to a recent interview. He points out that while browsers such as Netscape Navigator and Internet Explorer can directly connect to the Internet, it leaves online providers such as AOL and Compuserve out of much of the sales process and give it little influence over the customization of the look of the online experience. Browsers may be putting AOL -- and other networks -- in danger of becoming simple enablers for Internet access.

...and a better world it is.

hardmanb

07/09, 05:15pm | report spam | close reply

Damn straight!`

Who appointed the carriers to control what features are on my phone, where I buy music, and what phone I use.

Steve Jobs are right...they are merely portals...and their only valid function is selling bandwidth.

Again, Apple is putting control in the hands of the consumer/user...where it belongs.

broohaha22

Joined: Jul 2006

07/09, 05:45pm | report spam | close reply

This was discussed...

...in a well-written article on ars technica.

http://tinyurl.com/2c9v8c

ender

Junior Member

Joined: Mar 1999

07/09, 07:09pm | report spam | close reply

internet

Imaging where personal computers would be in the ISPs had the kind of control over computers as cell phone providers have over phones. We'd all still be using Commodore 64s!

Although, on the broader stage, if you think about it, ATT is still seriously restricting access to advanced phone features to most cell phone users. If I'm not an ATT customer, Apple can't sell me an iPhone. Let's not fool ourselves that we've achieved cell phone nirvana just yet. ALL carriers are STILL evil!

roberto

07/09, 09:01pm | report spam | close reply

@ johncarync

i love your article 'a decade earlier...' very clever!

thanks for the wit ; )

slider

07/09, 11:21pm | report spam | close reply

As it should be!

Just make sure the network is rock solid and you'll make money. Don't try to nickel and dime every chance you get and cripple my phone (verizon). Try being the best at one thing first. Point being the networks had a shot at this and they blew it. Once again, Apple didn't invent the concept of an internet smart phone (like they didn't invent the MP3 player), but they found an industry which was seriously lacking and filled it with the user in mind. This is really the exact same thing as the iPod. What gets me is that all of these super high paid analysts and corporate heads don't seem to get it. How many of these dumb@$$es still don't get it.

aristotles

Grizzled Veteran

07/09, 11:55pm | report spam | close reply

Does he really think consumers want to have branding of the carrier's logo? Does he really think consumers want the carrier s******* with the software? What kind of crack is this guy smoking?

ceedee20

Joined: Dec 2005

07/10, 01:19am | report spam | close reply

Yea, so...

"Apple may be putting AT&T -- and other networks -- in danger of becoming simple enablers for hardware from other companies, Balsillie warns.

"It's a dangerous strategy. It's a tremendous amount of control," he says. "And the more control of the platform that goes out of the carrier, the more they shift into a commodity pipe."

EXACTLY! Someone tell me why the stupid mobile PROVIDER should produce phones? Is this strategy really not directly in conflict with the wants and wishes of the consumer? Why the heck should the PROVIDER dictate the development of technology for the consumer? To h*** with the Dingle-berry.

resuna

Joined: Jan 2005

07/10, 01:24am | report spam | close reply

Where's the danger?

Guest

Joined: Nov 1999

07/10, 03:15am | report spam | close reply

Why is this a problem?

Carriers should not be limiting phone features anyways. I have RZOR V3c on Telus and They have disableded the the ability of the phone to use iSync via USB. Not only that, but in the Bluetooth Sync only the Address book works, but no iCal. They insist on giving me a camera that can only move pics via their service but they disable simple calander syncing. I understand Verizon does this in the US as well. Its not like they are offering some calander service as part of their networks they are trying to force us to use. I think it is time the manufactuers started selling unlocked phones that can be purchased for either CDMA or GSM networks with out carrier involvement. If you beleive what the carriers are saying they subsise the phone costs heavily to get you on to their network. How about better plans and let me pay full price for a phone. But the CDMA networks will never let that happen because the number of CDMA carriers world wide is small compared to GSM so the their phones will be twice as much. Not to mention that the Phone makers will have to start building more durable phones close to the size we are used to.

Please note I am nearly falling asleep as i type so Please dont grief over Typos and spelling.

dezinewiz

Joined: Mar 2007

07/10, 05:24am | report spam | close reply

People need to learn...

You know, everyone complains that Apple is the end all, be all. Steve Jobs and his amazing company really sat down, and are attempting to fix all of the annoying issues that all other cell phones have.

Why aren't the other cell phone companies attempting to come out with something as competitive and elegant?

Who ever said that Apple is the last creative force in the electronics industry?

Come one people... Stop complaining, and START COMPETING!

(Well, you can try, anyway - he he he he..)

purpleshorts

Joined: Sep 2004

07/10, 08:17am | report spam | close reply

Quality, not Danger

AT&T and Apple is a great partnership because (unlike other newbie cell phone carriers) AT&T understands product development, as does Apple. It's in their history and culture. They know enough to let Apple call the product design shots.

Hooray for AT&T's courage and vision. I hope they use the iPhone profits to improve network speed and customer service, so that the marriage will last.

manleycreative

Joined: Sep 2005

07/10, 08:50am | report spam | close reply

Sounds like…

M&M when they backed out of being the candy of choice for the movie E.T.

07/10, 11:55am | report spam | close reply

manley & manley

The M&Ms reference deserves some kind of recognition - so here it is!

Also reminds me of George Lucas getting the licensing rights for Stars Wars because the film company said, "who would license anything from a movie?"

And Assilie is a doofus.

smashedbanana

Joined: Jun 2005

07/10, 04:12pm | report spam | close reply

Scare tactic

He's just saying this to scare carriers away from Apple products.

Obviously some people want 100% plan-subsidized phones and they will have to live with carriers dictates functions.

But Apple has read the market right and a significant portion of users would rather have a unsubsidized phone where the features are contolled by the manufactuerer and the carrier is just the carrier.

slur

07/11, 01:44am | report spam | close reply

Very silly point

So... all the years we've been allowed to hook up any device to the phone lines into our houses... that was somehow a bad thing for AT&T too?

Stupid article.

Communications providers decided to get into the business of selling phones not too long ago. They've always had competition. If the business of selling phones interferes with their ability to provide a nice open network - or they try to leverage their communications lines to sell more of their own phones -- well that's a conflict of interest.

It's because of dangers like this that they should get out of the phone selling business anyway.

chadpengar

Joined: Oct 2001

07/12, 04:11am | report spam | close reply

iPhone is great but I

bought a Nokia N95 a few days before the iPhone launch. Unlocked for a little under $700 delivered plus $25 for a 2gb card.

Why? I would love to have an iPhone, but it lacks a few things that are a must for me:

UMTS (on 2100mhz -- world wide standard) and ability to do "ssh" (and in general add apps). I go to Japan and need a phone that will work there and in the US. The N95 does that (as did my previous N80 and SE V800). I can live with EDGE speeds in the US -- not that bad at least on T-Mobile. And I need to be able to ssh in to my servers from my phone in an emergency so I don't have to carry my PowerBook everywhere I go -- I can do basic trouble shooting on the phone and decide what to do once I know what the problem is. Fix it on the phone, get the PowerBook out of the car or drive home or find a local store with internet access I can borrow.

Hopefully Apple will have remedied these issues in a year or two when the N95 is getting long in the tooth :-)

The iPhone is years ahead of the N95 in terms of ease of use but the N95 is light years ahead in terms of customizing the phone to my actual needs -- not what Apple thinks I need. I don't need YouTube on my phone really (I hardly look at it on my computer) but I do need ssh

gregarios

07/13, 01:13pm | report spam | close reply

Danger is relative...

Anything that is dangerous to carriers is better for consumers in my book. They are already too greedy and power-mongering.

Especially Verizon, who disables 90% of the features of every phone they allow on their networks.

I wonder if it was really Verizon that refused Apple's offer to carry the iPhone, and not the other way around.

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RIM's CEO sees iPhone as "dangerous"

updated 02:35 pm EDT, Mon July 9, 2007

RIM CEO on iPhone Danger

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