Microsoft's Bing to Become Default Search Engine on RIM Blackberry Smartphones

Strategic Insights -

Microsoft Corp. has sealed a significant partnership with Research In Motion Ltd. (RIM) to make Bing the default search engine and map application on RIM's BlackBerry smartphones. This move aims to boost Microsoft's presence in the mobile device market and challenge Google Inc.'s dominance. According to Microsoft CEO Steve Ballmer, the partnership will be "deeply integrated" into the devices, creating "unique experiences for millions of BlackBerry customers." This partnership is expected to be ready in time for the holiday shopping season later this year.

Key Takeaways:

  • Microsoft's Bing will be the default search engine and map application on RIM's BlackBerry smartphones, aiming to expand its presence in the mobile device market.
  • This partnership will be "deeply integrated" into the devices, creating unique experiences for millions of BlackBerry customers.
  • The partnership will be ready in time for the holiday shopping season later this year.
  • Microsoft is trying to challenge Google's dominance in the U.S. search market, where Google holds a share more than four times larger than Bing.
  • RIM is looking to pack more features into its handsets and PlayBook tablet to challenge larger rival Apple Inc.
  • RIM's forecast cut, triggered by the development time of new products, led to the company's stock price drop by its biggest margin in 19 months.
  • Angry Birds, a popular game, will be available on the PlayBook soon, while a new PlayBook app for social-networking website Facebook and the Android player were also demonstrated.
  • The new Bold, a faster browser-enabled phone, is designed to replace the current Bold and other aging models, which have lost market share to Apple's iPhone and devices using Android.

Statistics:

  • Google held 65.4% of searches in February, while Bing held 13.6% (ComScore Inc. – Reston, Virginia).
  • Microsoft has partnered with Nokia Oyj (the world's largest mobile-phone maker by unit sales) to expand its presence in the mobile device market.
  • RIM's stock price dropped by its biggest margin in 19 months following the forecast cut (TSX).
  • The new Bold has a faster browser, designed to replace the current Bold and other aging models.
  • The partnership with Microsoft will be ready in time for the holiday shopping season this year.

Sources:

  • Bloomberg News
  • Microsoft Corp.