WHAT HAPPENED TO BLACKBERRY (RIM)
Blackberry which was formerly know by the name Research in Motion (RIM) Canadian telecommunication and Wireless Equipment Company founded in the year 1984 released its first handheld mobile in the year 1999 January with specifications like capturing pictures, recording videos, playing music audio video and other things like web browsing, electronic mail and instant messaging which was very much popular with the name BBM BlackBerry Messenger. Then with the passage of time, RIM also introduced mobiles focused at consumer market with models such as Blackberry Pearl, first blackberry phone to include multimedia features such as camera.
After some years of launched Blackberry smartphones actually dominated United States market along with other players such as Microsoft, Palm (RIP). But a major shift in the dynamics took place with the arrival of Apple I phone and Google Android in the year 2007 which completely changed the fate of Blackberry.
How does one big smartphone company go from controlling half the world’s smartphone market to less than 1% today, and from a profit of $1.9 billion to a $5.8 billion deficit –all this within the span of 5 year?
The story of a giant smartphone company Blackberry started when Steve Jobs CEO Apple staged at the MacWorld Conference in 2007 and showed the entire world community a gadget that can download music, video, take pictures, download videos and world maps, browse internet and can download hundred different applications in one go through a small glass look like handheld smartphone. This newly released I phone gained much of people attention around the world and many media analyst referred it as Blackberry Killer. At the point of time, the founder and chairman of Blackberry Lazaridis actually wondered as to how do Steve Jobs did that while been on his treadmill? Blackberry still maintained a sustainable growth until I phone grew rapidly within the smartphone market. Blackberry executives instead of thinking to develop a consumer centric gadget which will be as useful containing a pack of different interactive feature in just one device, they comforted themselves with reminders that I phone keyboard is difficult to use and the phone has a low battery life.
Excerpt from the book by Globe and Mail:
The next day Mr. Lazaridis grabbed his co-CEO Jim Balsillie at the office and pulled him in front of a computer.
“Jim, I want you to watch this,” he said, pointing to a webcast of the iPhone unveiling. “They put a full Web browser on that thing. The carriers aren’t letting us put a full browser on our products.”
Mr. Balsillie’s first thought was RIM was losing AT&T as a customer.
“Apple’s got a better deal,” Mr. Balsillie said. “We were never allowed that. The U.S. market is going to be tougher.”
“These guys are really, really good,” Mr. Lazaridis replied. “This is different.”
“It’s OK — we’ll be fine,” Mr. Balsillie responded.
Later after few months, Apple I phone improved on its design, look and features in their forthcoming I phone generations with better longer battery life, bright touch screen, and more responsive to user. And then when I phone were launched in the Apple stores in year 2008, it bashed out sales across United States making Blackberry to fall down to less than 1% market share of the total smartphone market.