BLACKBERRY: A GRAVE MISSTEP

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The story of Blackberry, once a pioneer in the world of smartphones, now surviving as a cybersecurity firm.


 

The device of choice of the 2000s’ corporate world that had every working man and woman of the time in a chokehold, was the line of Blackberry mobile phones. Peaking in September 2011, it had garnered over 85 million users across the globe. Its sleek design and keyboard paired with its enhanced security features made even the likes of former US president Barack Obama endorse it. Yet, despite being the first smartphone of its kind, Blackberry witnessed its great downfall unfold before its eyes as it failed to keep up with its new competitors, Apple and Android.

 

HOW BLACKBERRY CAME ABOUT

The Blackberry we know today finds its ancestry dating back to 1996, when Research in Motion (RIM) – a Canadian software company specialising in cybersecurity, launched the Inter@ctive Pager 900. Nicknamed ‘The Bullfrog’ and ‘The Hamburger’, it was described as a clamshell-type device that enabled its users to page others. A device with Blackberry in its title did not come about until January 1999, when the company released the Blackberry 850. A two-way email pager, the Blackberry 850 stood out because it was the first device to integrate email. Its features of such a speedy push email system that could be mirrored through the pronunciation of ‘Blackberry’, alongside the device’s buttons’ resemblance to the blackberry fruit are what made ‘Blackberry’ the final choice out of 40 as the new name of the brand.

ROAD TO SUCCESS

The company picked up traction as it pioneered in integrating more features into a single hand-held device. In 2000, Blackberry released what is often credited to be the first smartphone – Blackberry 957. The Blackberry smartphone enabled its users to access features like mobile telephone, web browsing, text messaging, push email and more. Its greater focus on incorporating a convenient email system into its devices led to its success in procuring greater market share in the mobile phone industry.

In parallel to the easy access Blackberry phones provided its users to their emails, its assurance of the security in email communications is what paved its way to becoming a corporate favourite. It allowed its users to remain constantly connected under a wireless network, and so business communications had never been easier. It was this corporate and government endorsement of the Blackberry devices that produced heaps of revenues for the company. Such garnered success allowed Blackberry to transcend national borders and enter the global market during what is known as Blackberry’s golden period from 2001 to 2007. It was also able to expand its portfolio, widening its functionality to cover a much broader set of uses that made it a celebrity in the mobile phone industry. Owing to its pioneering technology and appearance, Blackberry witnessed its peaks of success during this period, with its stock price reaching USD 147.55 in 2008, according to Macrotrends’ stock price history.

THE BEGINNING OF BLACKBERRY’S DOWNFALL

Blackberry’s success, however, was ultimately not perpetual. In 2007, Apple introduced the first iPhone, which was a completely keyboardless, touchscreen smartphone that reimagined the boundaries of what a mobile phone could be. The iPhone saw great success and was well-received by tech industries and general consumers alike. However, Blackberry made the mistake of not acknowledging Apple’s potential and continued to revel in its glories so far.

Dismissing the iPhone as an unserious device targeted towards the younger, more fleeting consumer market, Blackberry ignored what was the beginning of its downfall. Soon, Apple had spread past the general consumer base and penetrated into Blackberry’s main market – the business world. While Blackberry did manage to retain its identity as a business communication device for some time, its newer models, especially its first touchscreen Storm released in 2008 in response to the iPhone, failed to live up to expectations. Despite great success in the initial sales, Storm failed to bode well with customers as complaints about the device’s performance started to arrive in heaps. This was the first instance where Blackberry’s investors and the media were compelled to grow concerns over the brand’s hold on the mobile industry.


DISMISSING THE IPHONE AS AN UNSERIOUS DEVICE TARGETED TOWARDS THE YOUNGER, MORE FLEETING CONSUMER MARKET, BLACKBERRY IGNORED WHAT WAS THE BEGINNING OF ITS DOWNFALL.


In September 2010, Blackberry was able to pride itself on holding the largest market share of 37.3% in the American smartphone market for the last time, as it slowly started to be eclipsed by its new rivals Apple and Android. What was once a case of pride soon turned into a matter of shame for Blackberry as it watched its market share drop to a whopping 7.3% in 2012. What served as its only saving grace at the time was that despite poor success in sales within the USA, Blackberry still retained its impressive global sales. However, unpredictable stock owing to Blackberry’s poor performance locally in contrast to successful sales globally ultimately led to an approximate 30% decrease in its share price. Despite repeated attempts to return the brand to its past glory with the release of new devices like the Blackberry 10 and Blackberry Playbook tablet, volatility surrounding its stock continued.

 

WHERE IS BLACKBERRY NOW?

Unable to recover and return to what it once used to be, Blackberry is now Blackberry Limited – a cybersecurity and Internet of Things (IoT) services provider. Having completely abandoned the smartphone manufacturing business, Blackberry now holds a backseat as Apple and Android dominate and cultivate a loyal consumer base.

It cannot be said that Blackberry has been completely wiped out of the industry. It may not have great achievements similar to its first smartphone to pride on anymore, however, the story of Blackberry has now become one of survival. Despite its declining popularity in the West, Blackberry maintained its stronghold globally. Its ease of access and affordability compared to its rivals, for instance, its low data usage and compatibility with older technology at a time when developing nations had not adopted 3G or 4G networks yet, are all part of the reason why it survived. In 2013, after several failed attempts to sell the company, John Chen was appointed to be its new CEO in a display of quick strategy.

 

 

Chen played an integral part in Blackberry’s revival, as he shifted the brand’s focus back to its main consumer base – the business world. Additionally, in a move that evoked sadness amongst people, he announced that Blackberry would cease to manufacture its own phones, and would instead help to design phones only. Under Chen’s administration, Blackberry shifted away from its past as a smartphone pioneer to a more software-centred company. The company now survives as a cybersecurity and IoT services provider, instead of concentrating its resources on producing for a market it had lost a long time ago.

At present, the story of Blackberry as a company stands to be a story of survival. Closely studying the case of Blackberry sheds light on how it is important to show awareness when maintaining a business. Relying on previous achievements to dismiss new rivals is not an ideal business approach, as past glories do not secure us a similar future. However, Blackberry’s story is also of more than just a failed smartphone brand, it is a story of resilience. Over the years, Blackberry has made numerous attempts to save the company and has altered itself to better suit the needs of its market in an impressive display of determination. One can learn a lot from Blackberry, both from an entrepreneurial perspective as well as a personal one.

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