First Appeared: October 12,2012
Recently, the Android’s Samsung Galaxy S-series and the Apple iPhone have become the new “must have” for the smart phone enthusiast. The “PING-ing” days of the Blackberry is gradually losing its appeal in Jamaica almost as dramatically as it has in North America. Some of us who currently own a Blackberry and seemingly have an interest in the current affairs of the revolutionary handset, ought to be aware of Blackberry’s catastrophic decline over the last couple months. Blackberry, which is owned, created and designed by the company Research in Motion (RIM), has lost significant market share from new rivals iPhone and Android. In 2009 RIM was arguably on top of the world, trading at approximately US$140 per share, easily controlling 40% market share of the smart phone industry. Today, RIM can only dream of a fraction of such success as the stock price currently trades in single digits of approximately $8 per share with a meager market share of about 13%. Yes, from $140 to $8 per share and from 40% to 13% contraction of market share in 36 months! Some may ask how a company of such stature could have allowed itself to lose such a commanding position. A company that led the smart phone industry as recently as 2009 according to the Wall Street Journal now finds itself at the edge of the cliff! Has the Blackberry truly lost the plot?
Trip down memory lane with Blackberry
Although several people, including myself, utilize the Blackberry for its ease and affordability with its instant messaging, the idea and technology behind Blackberry goes beyond email and instant messaging. Mike Lazaridis and Douglas Fregin are the founders of the once small Canadian company and are amongst an impressive list of college drop outs that focused their energy on developing the company that we know today as Research in Motion. This college drop-out duo started RIM as an electronics and computer science consulting company that led them to developing a two-way messaging system and then into commercialized mobile technology. Not many people were aware of the Blackberry devices which hit the market in 1999. The device, although fairly unknown was widely used by the “elites” of the World; CEO’s, business owners and Government officials. During the 9/11 terrorist attacks on the World Trade Center, the New York Times highlighted that the Blackberry was the one device that worked when other phones failed. How so? Well, RIM has its own proprietary network which facilitates the secured exchange of data across its devices, the key driving force being its strength of security and ease of communication. Many will propose that such assets arguably helped RIM’s Blackberry attract a number of business and government clients in rapid succession. As the company continued to improve on the features of the handsets, they tapped into the market of the consumer savvy individual, especially with the introduction of the Blackberry Messenger (BBM). In essence, having a Blackberry became more than a “business” phone but a must- have communication machine! The Blackberry became the pioneer of the “smart phone” era, as former formidable brands of the “dependable” Nokia, “Hello Moto” Motorola and even the Sony Eriksson “walkman” phones were quickly seen as ancient devices. Ironically, the abandonment experienced by those brands is happening with Blackberry, with many jumping ship to iPhone and Samsung Galaxy S Droid. So could one infer that Blackberry’s decline is just a natural paradigm shift of consumers’ tastes?
So what happened?
It is easy to criticize and speculate when one is on the outside. What was management doing? How could they allow this to happen? Why did it take so long for action to take place? Although it may be easy to blame management, there may be factors beyond the control of the company. Being the number one choice for corporations and governments as well as possessing features unique to the Blackberry line probably gave little reason for management to conceive that its market position would ever be threatened. That all changed when the iPhone and Android announced their presence to the mobile World. Today, most smart phone users crave applications otherwise called “apps”. Most would agree that the iPhone and Android’s fast popularity ascended from the host of apps that are compatible with their devices. In essence, the Android and iPhone are said to have approximately 500,000 apps! Although boasting other unique features, the apps available on both devices have, without a doubt, contributed significantly to the 50% stronghold on the smart phone industry. With social media apps such as Facebook, Twitter, Instagram and Pinterest (a must have) – along with other apps that just make life easier for this generation, the Blackberry, unfortunately, no longer boast revolutionary status.
No Longer a Crackberry Addict
RIM’s Chief Marketing Officer (CMO), Frank Boulben recently told the Wall Street Journal that the company has approximately 78 million users worldwide. Not a terrible count, but how realistic is it that this number is likely to grow? More people are simply switching their devices away from Blackberry. Over the years, Blackberry users have tolerated occasional freeze and malfunction here and there but this tolerance is quickly coming to an end. Although Blackberry is known for its security, ease of communication and affordability, people are more concerned these days with how best a phone fits their lifestyle. The Blackberry 10 is scheduled for release early next year. The date was pushed back twice to ensure this device delivers beyond all expectations. Will it be too late? Or is it already too late for Blackberry to reclaim its position and please what is left of the ‘Crackberry’ family out there? One thing is for certain, the Apple iPhone and Google Android devices will stop at nothing to eat away every ounce of Blackberry’s market share with or without RIM’s blessings.
Share this post:
First Appeared: October 12,2012
Recently, the Android’s Samsung Galaxy S-series and the Apple iPhone have become the new “must have” for the smart phone enthusiast. The “PING-ing” days of the Blackberry is gradually losing its appeal in Jamaica almost as dramatically as it has in North America. Some of us who currently own a Blackberry and seemingly have an interest in the current affairs of the revolutionary handset, ought to be aware of Blackberry’s catastrophic decline over the last couple months. Blackberry, which is owned, created and designed by the company Research in Motion (RIM), has lost significant market share from new rivals iPhone and Android. In 2009 RIM was arguably on top of the world, trading at approximately US$140 per share, easily controlling 40% market share of the smart phone industry. Today, RIM can only dream of a fraction of such success as the stock price currently trades in single digits of approximately $8 per share with a meager market share of about 13%. Yes, from $140 to $8 per share and from 40% to 13% contraction of market share in 36 months! Some may ask how a company of such stature could have allowed itself to lose such a commanding position. A company that led the smart phone industry as recently as 2009 according to the Wall Street Journal now finds itself at the edge of the cliff! Has the Blackberry truly lost the plot?
Trip down memory lane with Blackberry
Although several people, including myself, utilize the Blackberry for its ease and affordability with its instant messaging, the idea and technology behind Blackberry goes beyond email and instant messaging. Mike Lazaridis and Douglas Fregin are the founders of the once small Canadian company and are amongst an impressive list of college drop outs that focused their energy on developing the company that we know today as Research in Motion. This college drop-out duo started RIM as an electronics and computer science consulting company that led them to developing a two-way messaging system and then into commercialized mobile technology. Not many people were aware of the Blackberry devices which hit the market in 1999. The device, although fairly unknown was widely used by the “elites” of the World; CEO’s, business owners and Government officials. During the 9/11 terrorist attacks on the World Trade Center, the New York Times highlighted that the Blackberry was the one device that worked when other phones failed. How so? Well, RIM has its own proprietary network which facilitates the secured exchange of data across its devices, the key driving force being its strength of security and ease of communication. Many will propose that such assets arguably helped RIM’s Blackberry attract a number of business and government clients in rapid succession. As the company continued to improve on the features of the handsets, they tapped into the market of the consumer savvy individual, especially with the introduction of the Blackberry Messenger (BBM). In essence, having a Blackberry became more than a “business” phone but a must- have communication machine! The Blackberry became the pioneer of the “smart phone” era, as former formidable brands of the “dependable” Nokia, “Hello Moto” Motorola and even the Sony Eriksson “walkman” phones were quickly seen as ancient devices. Ironically, the abandonment experienced by those brands is happening with Blackberry, with many jumping ship to iPhone and Samsung Galaxy S Droid. So could one infer that Blackberry’s decline is just a natural paradigm shift of consumers’ tastes?
So what happened?
It is easy to criticize and speculate when one is on the outside. What was management doing? How could they allow this to happen? Why did it take so long for action to take place? Although it may be easy to blame management, there may be factors beyond the control of the company. Being the number one choice for corporations and governments as well as possessing features unique to the Blackberry line probably gave little reason for management to conceive that its market position would ever be threatened. That all changed when the iPhone and Android announced their presence to the mobile World. Today, most smart phone users crave applications otherwise called “apps”. Most would agree that the iPhone and Android’s fast popularity ascended from the host of apps that are compatible with their devices. In essence, the Android and iPhone are said to have approximately 500,000 apps! Although boasting other unique features, the apps available on both devices have, without a doubt, contributed significantly to the 50% stronghold on the smart phone industry. With social media apps such as Facebook, Twitter, Instagram and Pinterest (a must have) – along with other apps that just make life easier for this generation, the Blackberry, unfortunately, no longer boast revolutionary status.
No Longer a Crackberry Addict
RIM’s Chief Marketing Officer (CMO), Frank Boulben recently told the Wall Street Journal that the company has approximately 78 million users worldwide. Not a terrible count, but how realistic is it that this number is likely to grow? More people are simply switching their devices away from Blackberry. Over the years, Blackberry users have tolerated occasional freeze and malfunction here and there but this tolerance is quickly coming to an end. Although Blackberry is known for its security, ease of communication and affordability, people are more concerned these days with how best a phone fits their lifestyle. The Blackberry 10 is scheduled for release early next year. The date was pushed back twice to ensure this device delivers beyond all expectations. Will it be too late? Or is it already too late for Blackberry to reclaim its position and please what is left of the ‘Crackberry’ family out there? One thing is for certain, the Apple iPhone and Google Android devices will stop at nothing to eat away every ounce of Blackberry’s market share with or without RIM’s blessings.
Share this post: