According to Reuters, British bank Standard Chartered is replacing the Blackberry with the iPhone. The Company is performing a test run by allowing its 75,000 bankers located in Asia the option to switch to the iPhone, with the Company covering all expenses (including the data plan.)
According to industry experts, this move by a large financial institution could set a precedent that causes other banks to switch as well.
Bankers have long valued the simplicity and ease of typing/emailing on a Blackberry compared to the iPhone. Investment Banking Analysts can easily respond to their demanding bosses in mere seconds by typing "Yes Sir" or "I'll be here all night" or "I'll drop off the pitch book on your doorstep while you're asleep."
Buttons on the Blackberry just make it easier to type and result in fewer mistakes, a big no-no in the financial services industry. So why did Standard Chartered switch? The Company has yet to release a statement on their rationale, but the whole world (especially RIM) will be anxiously awaiting their line of reasoning.
According to a recent study by the NPD Group, RIM has the biggest share of the U.S. smart-phone market with 36% compared to Android with 28% and the iPhone with 21%. Thus it looks like RIM's top spot is safe in the short-run.
Furthermore, Wall Street analysts report that it takes a large amount of time and effort for a Company to switch phones given security concerns. Given the financial crisis and pending legislation in Capitol Hill, bankers have much bigger fish to fry in the short term than worrying about smart phones.
While RIM's position as the market leader in the US looks safe for now, the departure of arguably its most loyal customer base - large financial institutions - has undoubtedly made the Canadian Company nervous about its future prospects - "Uh, oh - Eh!"
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