New Book Explores How the iPhone Contributed to BlackBerry's Downfall

Over the past several years, BlackBerry has gone from one of the top smartphone manufacturers to a company that's struggling to stay afloat in an increasingly competitive market. BlackBerry is hemorrhaging subscribers and losing revenue quarter after quarter as it attempts to turn the tide by focusing on marketing secure devices and software to its enterprise customers.

An upcoming book by Jacquie McNish and Sean Silcoff, Losing the Signal, explores the events that led to the rise and fall of BlackBerry, and an interesting excerpt was shared by The Wall Street Journal today, covering the iPhone's contributions towards BlackBerry's (then known as RIM) failure.

As we've previously learned from Google execs, the launch of the iPhone, which stood apart from all other smartphones on the market at the time, took everyone by surprise. Not only was the iPhone incredibly different from its competitors, it also had features that carriers had previously denied other manufacturers like a full web browser and later, an App Store that had no carrier ties.

blackberryiphone

Image via CIO

One of RIM co-CEO Mike Lazaridis' first comments was "These guys are really, really good," but despite that fact, RIM failed to see the iPhone as a threat due to its lack of security and the fact that it had no keyboard, features RIM execs thought would make it unappealing to RIM's core consumers.

If the iPhone gained traction, RIM's senior executives believed, it would be with consumers who cared more about YouTube and other Internet escapes than efficiency and security. RIM's core business customers valued BlackBerry's secure and efficient communication systems. Offering mobile access to broader Internet content, says Mr. Conlee, "was not a space where we parked our business."

RIM executives did not understand the iPhone and were "incredulous" that people were purchasing it, realizing too late that form had become as important as function in the eyes of consumers. In an effort to combat the threat of the iPhone, RIM teamed up with Verizon to create a competing touch-based phone -- the Storm.

Verizon pressured RIM into speeding up development on the phone, resulting in a product that was riddled with bugs and issues when it launched in 2008. Despite the flaws, the product was heavily marketed and RIM sold 1 million in two months, leading to a lot of unhappy customers who wanted to return or exchange their devices.

The Storm was a spectacular failure that impacted RIM's relationship with Verizon, ruined its reputation, and cost upwards of $100 million. After the failure, the company was demoralized and at a crossroads, unsure of where to take the company going forward and how to compete with the iPhone and other smartphones in a landscape that was radically different from what the company knew.

RIM was unable to fully recover from failure of the Storm and find its footing, eventually leading to the path that it's on today. "The Storm failure made it clear we were not the dominant smartphone company anymore, said RIM co-CEO Jim Balsille. "We're grappling with who we are because we can't be who we used to be anymore, which sucked...It's not clear what the hell to do."

The full excerpt from the book is worth a read and can be found over at The Wall Street Journal. The book itself is coming out on May 26 and can be pre-ordered from Amazon for $21.

Top Rated Comments

kwikdeth Avatar
76 months ago
Lesson learned (again): carriers are clueless
Score: 25 Votes (Like | Disagree)
ProwlingTiger Avatar
76 months ago
As someone who made the unfortunate of buying a Storm (was locked into a Verizon contract at the time), I can attest that RIM had no clue what it was doing. The executives never managed to pull their heads from their asses and design something even moderately competitive. I kept the Storm for a whopping 10 months before switching to AT&T for the iPhone. The Storm was complete garbage. The OS deteriorated over time to the point that I couldn't even answer telephone calls and that was with minimal apps installed and plenty of free space on the device.

I would expect any electronics company to take at least 2 years to catch up to Apple when it enters an industry with a groundbreaking device such as the iPhone, but the fact is RIM had 8 years and couldn't produce ****, all the while insisting that business customers needed a physical keyboard. Sure some are probably still clinging to their Blackberries but that is such a niche market.
Score: 23 Votes (Like | Disagree)
GenesisST Avatar
76 months ago
Steve Jobs and I cannot wait to see that day.

I would say "get a life" to both of you, but...

How soon is too soon?
Score: 20 Votes (Like | Disagree)
rekhyt Avatar
76 months ago
Arrogance. It's that simple.

It killed Nokia, and it killed BlackBerry. It nearly killed Microsoft (Before they managed to recover under S. Nadella).

And it'll be what kills Google as well.
Score: 19 Votes (Like | Disagree)
JoEw Avatar
76 months ago
Moral: Must keep innovating or you will not survive.
Score: 17 Votes (Like | Disagree)
AngerDanger Avatar
76 months ago
Ooh, it's from the same people who brought us Rain and How It Contributes to Wet Grounds. :p
Score: 17 Votes (Like | Disagree)

Top Stories

iphone 6 in hand

Apple Faces Another iPhone Lawsuit Over 'Programmed Obsolescence'

Monday March 1, 2021 6:44 am PST by
Apple faces a new class-action lawsuit that accuses it of deliberately releasing iOS updates that slowly reduce the performance of an iPhone, forcing customers to upgrade their devices. The lawsuit comes from the Portuguese Consumer Protection Agency, Deco Proteste (via Marketeer), which in a statement says that it will proceed with a case against the Cupertino tech giant because it...
PIA23764 RoverNamePlateonMars web

NASA Mars Perseverance Rover Uses Same PowerPC Chipset Found in 1998 G3 iMac

Tuesday March 2, 2021 3:21 am PST by
NASA's Perseverance rover, which recently made history landing on the surface of Mars, is powered by the same processor used in an iMac more than 23 years old. Image Credit: NASA As reported by NewScientist (via Gizmodo), the rover includes the PowerPC 750 processor, the same chip used in the G3 iMac in 1998. The main chipset is the same; however, there are differences between the...
magsafe charging brick feature

Prosser: iPhone 12 MagSafe Battery Pack to Feature Reverse Charging

Monday March 1, 2021 1:18 pm PST by
Apple is working on MagSafe-compatible battery packs that will be compatible with the iPhone 12 models, and leaker Jon Prosser today said on the Genius Bar podcast that one version of the battery pack will feature "reverse charging." According to Prosser, Apple is working on two versions of the battery packs, one that's a standard version and one that's a premium version with reverse...
iphone 12 pro display video

iPhone 13 to Include 1TB Storage Option and LiDAR Across the Board, Says Wedbush Analyst

Monday March 1, 2021 4:00 am PST by
Apple's forthcoming iPhone 13 could include a 1TB storage option for some models and LiDAR Scanners across the entire lineup, according to a report from Wedbush analysts. In a new note to investors, seen by MacRumors, Wedbush analyst Daniel Ives said that initial Asian supply chain checks gave the firm "increased confidence" that Apple's 5G-driven product cycle would extend well into 2022,...
Top Stories 47 Feature copy

Top Stories: MacBook Pro, iMac, and AirPods Rumors, macOS 11.2.2, MagSafe Wallet Revisited

Saturday February 27, 2021 6:00 am PST by
March is right around the corner, and that means our first good opportunity for Apple product launches in 2021 as the company frequently has significant launches in March or April each year. We're hearing rumors about MacBook Pro, iMac, AirPods, and more, although many of these will be coming out at different times over the course of the year. This week also saw a macOS update to address a ...
microsoft edge ios android

Bill Gates Says His Preference for Android Over iPhone is Due to Pre-Installed Software

Friday February 26, 2021 3:35 am PST by
Microsoft co-founder Bill Gates this week participated in his first meeting on Clubhouse, the increasingly popular invite-only conversation app, where he fielded a range of questions as part of an ongoing book tour. Gates was interviewed by journalist Andrew Ross Sorkin, and given that the Clubhouse app is currently only available on iOS, naturally one of the questions that came up was...
iphone 12 120hz thumbnail feature

Kuo: iPhone 13 Lineup to Feature Smaller Notch and Larger Batteries, 120Hz Display for Pro Models, and More

Monday March 1, 2021 7:50 am PST by
iPhone 13 models will all feature a smaller notch, while the two Pro models will be equipped with low-power LTPO display technology for a 120Hz refresh rate, analyst Ming-Chi Kuo said today in a research note obtained by MacRumors. Subscribe to the MacRumors YouTube channel for more videos. Several other sources have previously claimed that some iPhone 13 models will support a 120Hz refresh...
maxresdefault

HomeKit Essentials Worth Checking Out

Saturday February 27, 2021 7:05 am PST by
HomeKit was slow to take off after its 2014 launch, but now that it's been around for seven years, there are hundreds of HomeKit products available, ranging from doorbells and speakers to TVs, lights, and cameras. In our latest YouTube video, we rounded up some of our favorite HomeKit products that we find most useful. Subscribe to the MacRumors YouTube channel for more videos. HomePod...
First Look Big Sur Feature2

Apple Releases macOS Big Sur 11.2.2 to Prevent MacBooks From Being Damaged by Third-Party Non-Compliant Docks

Thursday February 25, 2021 10:07 am PST by
Apple today released macOS Big Sur 11.2.2, the fourth update to the macOS Big Sur operating system that launched in November. macOS Big Sur 11.2.2 comes two weeks after the release of macOS Big Sur 11.2.1, a bug fix update. The new ‌‌‌‌macOS Big Sur‌‌‌ 11.2.2‌ update can be downloaded for free on all eligible Macs using the Software Update section of System Preferences....
Apple Prefer Lightning Over USB C Feature

iPhone Sticking With Lightning Port Over USB-C for 'Foreseeable Future'

Tuesday March 2, 2021 9:32 am PST by
Apple will retain the Lightning connector on the iPhone for the "foreseeable future," with no intention of switching to USB-C, according to reliable analyst Ming-Chi Kuo. In spite of much of the industry moving toward USB-C, Apple will not be using it to replace the Lightning connector on the iPhone 13, or indeed on any iPhone model for the time being. In a note seen by MacRumors yesterday,...