RIM and AT&T Having a Bold Summer

Implications: RIM’s announcement of the new Bold model for exclusive U.S. distribution to AT&T adds to the carrier’s potential with the new 3G iPhone to sell both enterprise and “prosumer” customers.

Analysis: AT&T is rumored to be hiring employees for a strong summer selling season from a new 3G version of the iPhone.  RIM’s announcement to offer the new Bold model in U.S. markets exclusively through AT&T is another key tactic.  RIM has to ensure that Blackberry users wanting an upgrade do not defect to the iPhone.  For AT&T, the selling opportunity is to cover both enterprise applications and “prosumers” combining business and personal use.  Research shows that over half of employees use their mobile devices to access business applications.  But also more than half of the users buy their own phone instead of being provided by the company.  With the growing interest in mobile device management (MDM) and security, IT departments could strive for device standardization.  Both RIM and AT&T appear ready to compete for the nomadic employee with the combination of business and personal-use models. 
The additional speculation of AT&T subsidizing the iPhone price by $200 could be a challenge for RIM’s $300-$400 price point.  The combination of economic slowdown and reduced corporate budgets could emphasize price.  But RIM is strategically diversifying across global markets with the distribution through Brightpoint for Latin America, Europe, the Middle East, Africa, and the Asia Pacific.  At the same time, Apple has broadened its outreach through contracts with Rogers, Vodafone, America Movil and SingTel.  RIM’s new Bold model and Apple’s upgraded 3G version will compete in a cross-section of worldwide markets during 2008.