How did RIM's proprietary Mobitex network and associated hardware experimentation contribute to their eventual downfall?

RIM's focus on the proprietary Mobitex network and associated hardware experimentation led to a delay in recognizing the shift in the market towards more versatile devices. While RIM was concentrating on the Mobitex network, other players like Motorola, Nokia, and U.S. Robotics were developing devices that offered a wider range of features. RIM's vision was centered around a device primarily for sending and receiving emails, which limited their ability to adapt to the changing market demands for smartphones with more comprehensive functionalities. This strategic misstep contributed to their eventual downfall.

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In the years immediately after Balsillie joined, RIM continued to focus efforts on the Mobitex network – getting it off the ground, programming tools for users to write applications for it, and creating software for Mobitex users already connected to it. Soon, however, it was clear that the big money was in hardware, not software. While other players began charting the territory with devices like Motorola's Tango (a two-way pager), Nokia's 9000 Communicator (an expensive cell phone with a keyboard, the size of a book), and U.S. Robotics's Palm Pilot 1000 (a sleek device with calendar, contacts, and other information), RIM was slowly and quietly building a wealth of experience and knowledge in the sector by operating the proprietary Mobitex network and experimenting with associated hardware. Lazaridis's vision was a future where the most "logical device" would send and receive email.

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Losing the Signal

The Kodak of smartphones, RIMs rise and fall, is an epic tale of how relationships, patents, lack of unity, and the wrong strategic plan led to the fa...

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