RIM shares drop on Dell announcement

RIM's share price tanked on Dell's Windows Phone 7 announcement.RIM’s share price has dropped more than 3% Friday after Dell announced their intent to move all of their staff off Blackberries to Windows Phone 7 devices.

RIM, who saw a 53% decline in market share between Q3 2009 and Q3 2010, is currently appearing increasingly embattled, particularly as the company does not appear to have any next-generation devices on the horizon to halt the decline.

Windows Phone 7 appears to be an unexpected challenger to RIM’s enterprise crown.  The software has not been originally targeted at the business user, but as enterprise IT departments have become increasingly more lenient regarding security and manageability requirements for the smartphones their employees bring to work the platform has seen an unexpected business adoption.

The most recent report is of Avanade, a business technology service, who is the first company in the Netherlands to move 225 employees to HTC’s 7 Trophy.

The company reports that not only does the phone meet their requirements of cloud integration, it is also very pleasant to use, an increasing factor in IT deployment, and enables a “new way to work.”

Windows Phone 7 formally launches in USA today, and it seems likely the OS will continue taking market share away from the current US incumbents.  With only 3% of the market at present, it seems, unlike RIM,  it is likely the only way is up.

Via SiliconIndia.com

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