BlackBerry Maker Remains Dominant in Soft IT Market

June 9, 2008

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Information technology spending remains lackluster among companies of all sizes, but BlackBerry-maker Research in Motion (RIM) continued to dominate the smartphone market with 76% share in Q1 (up three points from the previous quarter), according to a May study from ChangeWave.?

Of those planning smart-phone purchases next quarter, 82% will buy BlackBerries, finds the quarterly survey of 2,049 respondents involved in corporate IT spending; just 13% plan to buy the iPhone next quarter, and only 8% say their company was considering Palm devices.

Though Palm has the second-highest market share (17%), it continues to decline, according to ChageWave.


Below, additional findings from the study.

Reported IT spending remained at virtually the same (lowered) level as in the previous quarter, indicating that although things have not gotten worse economic weakness will continue for the second half of the year.

  • Asked if their overall IT spending was on track in the second Quarter, 11% of respondents say their company had spent “more than planned,” up one point since February, and 27% say they’ve spent “less than planned” – unchanged from the prior quarter.


  • Nearly one-in-four respondents (24%) say their company’s IT spending will decrease in the third quarter or there will be no spending at all, a decline of one point from the previous survey. Only 15% say spending will increase, unchanged from last quarter.
  • Asked about their IT spending outlook for the entire second half of 2008 (July-December), 28% say their IT budget will be less than in the first half of 2008, a decline of 8 points from the previous survey.
  • Only 18% say their company’s IT budget will be greater than it was in the first half of 2008; 44% say their IT budgets will remain the same.

These results strongly suggest that businesses will continue to maintain a wait-and-see mode regarding capital spending – possibly until the November elections, according to ChangeWave.

“While the slowdown in overall spending may finally be stabilizing, this survey suggests that IT spending will remain anemic for the rest of the year,” said Tobin Smith, founder of ChangeWave. “The one exception here is RIM,” which is likely to enjoy one of its best quarters ever.


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