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The Honolulu Advertiser
Posted on: Tuesday, August 10, 2004

BlackBerry taking larger slice of PDA pie

By James Pilcher
Cincinnati Enquirer

Remember getting busted for reading a comic book in class? Or for passing notes? Remember the embarrassment of having the notes read to the class after you were caught?

Those days are here again, thanks to what is becoming the ubiquitous BlackBerry.

For the uninitiated, the BlackBerry is basically a personal digital assistant that keeps your schedule, contact list, to-do list and so on, on a device slightly bigger than a standard cell phone.

But more important, it also can receive regular e-mail wirelessly, freeing users from the tethers of either their office PC or a laptop. And it can triple as a regular cell phone.

This has created quite an addiction. Some people have even taken to calling them "CrackBerrys" because of the inability of users to put them down anywhere, whether at home or in an important staff meeting when the boss is writing on the blackboard.

"Some people were leery of them at first, but now they say that I'd have to break their arm to take them away," says Paul Grone, vice president for infrastructure management for the Kroger grocery store chain, where 100 workers use BlackBerrys.

"It is very, very addictive, because it grounds you and keeps you connected," he says. "And that keeps you in the loop, and you never want to get out."

Canadian firm Research In Motion (www.rim.com) makes BlackBerrys and is starting to turn heads on Wall Street as well as throughout the tech world.

Using primarily word of mouth to market the devices, RIM turned a $55 million profit for its fiscal first quarter ended May 29. The company now boasts about 1.3 million BlackBerry subscribers, and it signed up 270,000 new users just last quarter.

It's slowly taking market share away from Palm or Pocket PC PDAs as well as laptop makers.

Many users say they will sit at their desks and use the BlackBerry for e-mail, while their desktop computer sits idle. Others find the devices indispensable no matter the time of day or their location.

"I can say personally that it saves me at least an hour a day that I used to spend just dealing with e-mail," Grone says.

"Now, I can do two to three at a time when I'm sitting on a bus to the airport, or at lunch or wherever."

And the addiction can hit anyone in any profession.

They've been seen in the halls on Capitol Hill — the company provided free devices to all members of Congress after the 9/11 attacks.

BlackBerries cost from $199 to $450, depending on whether the device can double as a cell phone and whether you want a color or less expensive black-and-white screen.

Rob Porter, who sells the devices through The Wireless Store chain in Kentucky, says demand is exploding for the device, even though RIM has not really advertised much.

"It's like an adult instant messaging device," says Leo Chan, a product manager with Cincinnati Bell, who acknowledges being a BlackBerry addict.

But there is a backlash.

Tim Burke, partner in a Cincinnati-area Web development firm, says his wife hates his BlackBerry.

"She calls it a raspberry and worse," says Burke, who has had his device for three months.

"But the feeling of being too connected is a syndrome of this day and age. Some of us bring it upon ourselves, and this device, while enabling me to give better customer service, certainly does keep me too connected at times," he said.

• • •

BlackBerry FAQ

What is it? A BlackBerry is a hand-held messaging device that uses the same wireless networks as cell phones to send and receive e-mail from company or personal accounts. When the BlackBerry was introduced, it was used almost exclusively for e-mail. Newer models can make and receive voice calls and surf a stripped-down version of the Web.

How much does a BlackBerry cost? A new BlackBerry costs between $200 and about $450, depending on its features. The most expensive models include voice-calling capabilities and a color screen. The least expensive models are data-only and have a black-and-white screen. When you buy a BlackBerry, you'll also have to buy a service plan. These run about $40 per month for unlimited messaging.

Where can I buy a BlackBerry? RIM doesn't sell direct to consumers, but your wireless provider might. T-Mobile, Verizon, AT&T Wireless, Cingular, Nextel and many smaller providers sell BlackBerry devices and service.

Where can I find out more? On the Web at www.irm.com.

Some alternatives to Blackberry

PalmOne Treo 600: It's a combination cell phone and data device that uses the Palm operating system. In addition to wireless e-mail and Web capabilities, it can run thousands of Palm PDA programs. It costs about $500 and is available from AT&T Wireless, Cingular, Sprint PCS and Verizon.

T-Mobile Sidekick: Targeted to the youth market, the SideKick includes wireless e-mail, Web surfing and AOL Instant Messenger. It works as a cell phone. Sidekick II (right, $299) is scheduled to arrive this fall.