Analyst says that Apple's iCloud could seriously damage RIM
The new service, expected to be introduced Monday, will make iTunes more powerful according to Wu, who says that it can hurt Google, Amazon, Microsoft and RIM. While all of the aforementioned companies have tried to compete with iTunes,Wu sees iCloud making life especially difficult for RIM. Why? Because RIM offers its own "push" network for users of BlackBerry phones. While iCloud won't offer all of the same services that BlackBerry does, it will relieve some of the traffic congestion that carriers face by offloading data processing and as we reported the other day, the service will begin life free to users.
This banner, displaying the new iOS icon for Apple's soon-to-be-introduced iCloud service, hangs over the Moscone Center, home to Apple's WWDC
After speaking to industry contacts, Wu told clients that iCloud could impact RIM's forward service revenue and gross margin. Currently, carrier payments offer RIM gross margins as high as 87%. With that kind of profitability in danger, Wu has cut his revenue estimates for the Canadian based company to $24 billion (US) for the 2012 fiscal year, a drop of $100 million from his previous figure. Even more damaging, Wu now expects the BlackBerry maker to produce earnings of $6.35 a share, down from the $6.65 originally estimated. With this in mind, the analyst has cut his target on RIM's stock to $44 from $52. Friday morning, the stock was trading at $39.83.
Monday, Apple CEO Steve Jobs is expected to introduce the iCloud service during his keynote speech at the WWDC in San Francisco. A banner showing the iOS icon for iCloud is already hanging at the Moscone center where the WWDC will be held.
2. E.Graves (unregistered)
My question is that for all the people that do not have unlimited plans how will the icloud benefit them. Why use a icloud service in your own house on your own wifi network when your music is most likely on your computer any how. I currently use amazon mp3 cloud player with my Evo, but i do have unlimited data that isn't throttle as far as I have noticed. The cloud concept is great, i have taken 6 gbs of music off my sd card and uploaded it to amazon. But i don't see it crushing other services right now because the IPhone is on two networks that are no longer offering unlimited non throttle data packages.
12. LionStone (Posts: 444; Member since: 10 Dec 2010)
Yea well, for the next two years most of us still do! :)
26. MpowerSkills (Posts: 35; Member since: 19 Feb 2011)
When is it supposed to go away? I should probably get an unlimited plan before it goes away, right? Then I'll be grandfathered in?
3. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
We'll see what Apple has up their sleeve. They're very innovative so they may offer something more than cloud storage. They could really make it game changing.
4. koutrelakos (Posts: 30; Member since: 17 Mar 2010)
I've stored 7000 songs and counting with Google Music Beta. iCloud isn't innovation, it's just Apple's version of what already exists. Who cares.
5. Lucas777 (Posts: 2121; Member since: 06 Jan 2011)
uhhh everyone who uses itunes cares... im sorry but ur google music kinda fails... holy crap u uploaded ur songs when u cud have just put them on ur phone in 1/5 the time! and anyways i believe icoud is much more than just music
8. Rich (unregistered)
everyone uses itunes? well mostly everyone who has an iphone uses itunes. but not everyone uses itunes. i think the whole cloud thing is kinda dumb. but maybe itll work. but clouds already exist. this isnt innovative, but however apple will get all the media credit and publicity bc apple is just the tend right now. i can plug my phone in my computer, click connect as hard drive, and just drag any files into the phone that i want to have there to bring around with me.
31. Lucas777 (Posts: 2121; Member since: 06 Jan 2011)
i said everyone WHO uses itunes... learn to read... and ya it already exists... but in every aspect of life, its who makes money from it that matters...
14. Whateverman (Posts: 3187; Member since: 17 May 2009)
Lucas777. Why do you think Google Music is a fail? Looks pretty cool to me.
16. InspectorGadget80 (Posts: 6141; Member since: 26 Mar 2011)
I store 17,000 songs on my Google Music Beta
6. theBankRobber (unregistered)
Every cloud streaming service sucks Ass, its going to be a batter killer and data increased. This is just the most stupid ideal I ever heard, and god I hate to really really really say this but, Apple is talking another ideal that others have started and is going to make it seem like they invented the Shit. Look at what Wu said , its going to be another game changer, how, its another persons ideal that Apple will throw billions of dollars around just to make it seem they did it 1st and was completly their ideal.
10. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
All you Apple haters don't get it. Apple isn't innovating new ideas. They're taking things that exist and innovating to make them better and user friendly. That's why Apple sells. Look at touch screens. They existed before the iPhone, but the iPhone OS was way more user friendly and made touch screens mainstream. Same thing with the iPad. Tablets existed for years, but no one cared because they weren't user friendly. Apple may be able to do the same with icloud.
19. iHateCrapple (Posts: 734; Member since: 12 Feb 2010)
Bill Gates had the right idea all along; he just couldn't implement it in a user-friendly way.
11. LionStone (Posts: 444; Member since: 10 Dec 2010)
So people are apple haters if they don't buy into the whole apple game? Great they have nice touch screens and tablets, and what else? Oh yea, a grand marketing (brainwashing) scheme...so let's not confuse what really sells apples.
13. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
No people who prefer different products aren't Apple haters. People like you that follow Apple articles around just to talk shit are. Statements such was "brainwashing" is nothing, but hating. You know very well that Apple makes good products and that's why people buy them. Anytime someone is successful there are haters. You happen to be one of those people which sucks for you.
22. LionStone (Posts: 444; Member since: 10 Dec 2010)
Taco, who is the one hating? I even agreed that apple has nice touchscreens and tablets (I even bought one for my buddies daughter's birthday!) But you don't realize that you pretty much said what the Bank Robber said...only difference is I don't think you know what you are saying. First you say they are very innovative, then you say they're not innovating new ideas, just taking something existing and making it better. To me, that's not really innovative, that's polishing. Which leads into their marketing scheme which everyone knows about and does NOT come from a hatred position.
Especially since i have heard first hand how people don't even care about what apple has for specs, etc. but that they want it (whatever it is) because its apple and that's all they hear about...from their friends, the news, the billboards every 200'...I mean come on, that's reality. Apple makes a fine product yes, but that is not the whole picture as to why people buy them. I follow these articles to see what the competition offers and to share with my friends who use apple. Even 530Gemini stated he's not sold on the iCloud service in general, does that make him a hater too!? I think not.
23. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Did you read your own statement? You said "great they have nice touch screens and tablets and what else?". Then you said they brain wash people into buying their products. Anyone can scan Apple articles on this website and see you posting one shit talking comment after another. It's not news to anyone, but you apparently. You're saying what Apple did with touch screens isn't innovation? Pinch to zoom? Webkit browser (which android now uses by the way).
You also have a reading comprehension problem even for things you write. I never said if you aren't sold on Apple products or don't want to use icloud you're a hater. I said people who follow Apple articles just to post shit talking comments are. You're first comment you were clearly trolling. Now you don't want to own up to it.
24. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
There's a guy that named himself ihatecrapple for gods sake. His screen name is based on hating Apple. I'm guessing he's a VZW employee because he hasn't talked to much since Verizon got the iPhone.
29. LionStone (Posts: 444; Member since: 10 Dec 2010)
Oh waahh taco, grow a backbone...my "brainwashing" comment is my opinion of apples marketing scheme, yea so what?! You gonna cry "hater!" everytime somebody's comments don't agree with yours on apple subjects?
15. 530gemini (Posts: 2198; Member since: 09 Sep 2010)
I'm not sold on this cloud service in general. If it's just music and videos, I wouldn't care for this service. I have my music and videos with me now and can play them anywhere, so I don't know how the cloud service can significantly impact the way I access my media.
I will see it beneficial if it can let me access all my files (music, videos, photos, and docs), synch all my idevices, and let's me switch devices and continue what I was doing. Otherwise, I'm not interested.
18. iHateCrapple (Posts: 734; Member since: 12 Feb 2010)
I'm not sold on cloud services either, honestly. Like the guy who responded to me said above, Verizon has unlimited data...for now, and probably not much longer. With these cloud services, there is going to be a lot of uploading/downloading from devices and streaming, all of which use data. If everyone is moving to tiered data plans, how is this going to benefit the consumer? Sure it might be convenient, but having to pay for the cloud service (which they say crApple might do) and having to worry about your data usage kinda negates that? In my opinion anyway.
17. InspectorGadget80 (Posts: 6141; Member since: 26 Mar 2011)
How is it going to KILL RIM? This is why I hate analyst they can't predict anything that's accurate.
25. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Youre assuming it's only for storing music. They can use it to push email, offer sync services similar to how rim uses their servers.
27. iHateCrapple (Posts: 734; Member since: 12 Feb 2010)
IN RESPONSE TO COMMENT #24
Yea, I hate crApple products....
I have my preferences, and you have yours. I don't say much anymore because there weren't too many interesting articles here for a while.
And yes, I am also a VZW employee. And that's another reason I hate crApple; they stifle the commissions on that piece of sh*t and you barely make money on the phone itself.
Windows 8 will crush everything... :)
28. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
You had that screen name way before VZW had the iPhone. I hate crapple came from being a brainwashed Verizon employee who bought into the hype of hating the iPhone just because VZW didn't have it.
30. LIboy (unregistered)
Forget iCloud. I have instinctiv app...instinctiv.com...way better. I control my library across multiple players and get many features too.