Sirius XM has an app for Apple’s iPhone. They also have one for the Blackberry. As yet, the company has not developed an app for Google’s Android platform. In an interesting article about possible consumer defectors from the Blackberry platform some interesting points and statistics arise giving a possible indication of what Sirius XM’s next step might be in the mobile phone arena.
In the past, Blackberry users have been a loyal bunch. RIMM seemed to have a strangle hold on the business professional market with ease of e-mail access and the ability to sync corporate contacts, emails, and calendar being a strong selling point. Blackberry’s early success would seemed to have given them an edge in the marketplace that was sustainable. In my mind, what happened to Blackberry is that they got leaped in the technology arena by both Apple and Google.
I am a prime example of someone who has taken the leap away from Blackberry. I now use a Motorola Droid, and love it. Many users of iPhones and Droids love their devices, and in my mind it is all of the additional capabilities of these devices that set them apart from Blackberry.
What is being reported according to a survey is that 39% of Blackberry users, if getting a new phone the next day, would said they would get an iPhone and 33% would grab a droid. These numbers are staggering. Nearly 3/4 of Blackberry users seem to be giving serious consideration to abandoning the Blackberry platform. Numbers like these should not be ignored by consumers, investors, and even a company such as Sirius XM.
As the Android continues to gain share, it would seem logical that the company develop an app for the platform. Competitors such as Slacker and Pandora already have apps for Android. Sirius XM should consider following suit, and do so sooner rather than later.
“According to comScore, RIM’s market share dropped a percentage point in the fourth quarter of 2009 from the third quarter, and Apple’s rose 1.2%. PCWorld’s Tony Bradley calculated that, given the same rate of rise and decline, Apple could surpass RIMM’s market share by February 2012. And buoyed by the success of the Motorola (MOT) Droid, Android showed the biggest gains — rising 2.7% to 5.2%.” – Mike Schuster
From a satellite radio perspective this news is noteworthy, but not a driver of the success of Sirius XM. The mobile phone arena has not been a huge contributor to the subscriber base, but the company needs to maintain or get a presence in this area. The positive side of the mobile phone market is the that the costs are not as high as the auto channel and the company does get exposure. The app market is worth pursuing but should NOT be the main focus of Sirius XM. The focus needs to remain in the OEM channel.
The key is developing a seamless solution that matches the wants, desires, and needs of the consumer. Cell phones have become a staple of life. They act as a phone, a rolodex, and e-mail tool, and more. These days, the cell phone is basically a mini computer. Like computers, cell phones have many brands and choices, but it is the big players, and up-and-coming players that Sirius XM needs to hitch their wagon to. Right now the next logical step is an Android app.
Position – Long Sirius XM, Apple – No Position RIMM, Google
[via Yahoo Finance]