What Happened to BlackBerry? Blackberry's Dramatic Downfall, Explained

Fifteen years ago, owning a BlackBerry was the pinnacle of technological status. Celebrities like Lady Gaga and Kim Kardashian flaunted their devices, while even former President Barack Obama fiercely guarded his. The BlackBerry wasn't just a phone; it was a symbol of success and connectivity. Naomi Campbell once famously used a BlackBerry as a projectile in a moment of frustration, underscoring its omnipresence and cultural significance.Photo via Guardian Liberty // No one uses BlackBerry anymore. What happened to this once iconic brand?

A Meteoric Rise and Sudden Fall

Revolutionizing Communication

BlackBerry, originally known as Research in Motion (RIM), revolutionized mobile communication with the introduction of the Inter@ctive Pager 950 in 1998 and the first smartphone, the BlackBerry 957, in 2000. These devices, featuring secure email services and a full QWERTY keyboard, became indispensable tools for business professionals and government agencies. Tech writer Jonathan Margolis reminisces, “I was in New York working on a book, and I noticed everyone had these things called BlackBerrys... It was incredible.”Photo via Romeo White (YouTube) // The BlackBerry 957 thrust BlackBerry into the limelight when it was first introduced.

The iPhone Effect

The launch of Apple’s iPhone in 2007 marked the beginning of BlackBerry’s decline. The iPhone's intuitive touchscreen and consumer-friendly features swiftly overshadowed BlackBerry’s offerings. Margolis observes, “BlackBerry had become quite smug... the clicky-clicky BlackBerry method of typing seemed completely antiquated.” This shift not only eroded BlackBerry’s market share but also redefined consumer expectations for smartphones.Photo via Apple // The biggest threat to BlackBerry's existence came in a sleek black package: It was called iPhone, and Steve Jobs joyfully introduced it during a highly anticipated Apple keynote.

Cultural and Workplace Impact

Beyond being a status symbol, the BlackBerry transformed work dynamics by enabling constant connectivity. Professionals could reply to emails anytime, anywhere, fostering a culture of perpetual availability. This innovation laid the groundwork for today's remote work environment but also led to issues like burnout and blurred work-life boundaries. The device’s addictive nature earned it the nickname “crackberry,” and terms like “BlackBerry thumb” highlighted its physical toll on users.

BlackBerry’s Cinematic Retelling

A new film, BlackBerry, based on the book Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry by Sean Silcoff and Jacquie McNish, brings the company’s dramatic journey to the big screen. Directed by Matt Johnson, who also portrays co-founder Douglas Fregin, the film offers a satirical yet poignant look at BlackBerry’s rise and fall.

“The idea to basically seize as much power as possible for no reason,” Johnson laughs. “Just to have power. Yeah, the dance between those two things, I really recognised it.”

The movie captures the intense rivalry between visionaries Mike Lazaridis and Jim Balsillie, highlighting the internal conflicts that ultimately led to BlackBerry’s downfall. Johnson reflects on the loss of Fregin, stating, “This idea that there’s something that doesn’t quite obviously seem to affect the bottom line, but creates a harmonious, egoless positive environment... For Johnson, Fregin’s removal represented nothing less than the spiritual death of the company.”

Financial Turmoil and Decline

BlackBerry’s financial trajectory is a stark testament to its volatile market presence. At its peak in September 2011, BlackBerry boasted 85 million subscribers worldwide and a stock price of $147. However, the rise of Google’s Android and Apple’s iOS platforms caused a near three-quarters decline in its market share. By April 2024, BlackBerry’s stock had plummeted to around $3.

Failed Comebacks

Attempts to regain its footing included the launch of the BlackBerry Storm and later the BlackBerry 10. The acquisition of QNX in 2010 aimed to diversify into tablet OS, resulting in the unsuccessful BlackBerry Playbook. Despite these efforts, BlackBerry could not resonate with consumers, leading to significant financial losses. By 2016, the company ceased manufacturing phones, shifting focus to cybersecurity and Internet of Things (IoT) services.

Margolis suggests that BlackBerry’s hubris contributed to its downfall: “BlackBerry had become quite smug... the clicky-clicky BlackBerry method of typing seemed completely antiquated.” The company's inability to adapt swiftly to touchscreen technology and evolving consumer preferences hastened its decline.Photo via CNET // BlackBerry 10 was a bit bet for RIM, but it ultimately didn't catch on with consumers.

Current Focus and Future Prospects

Today, BlackBerry Limited operates primarily in cybersecurity and IoT, reporting fiscal year 2024 revenues of $853 million, with $815 million from IoT and $280 million from cybersecurity. Despite abandoning the smartphone market, BlackBerry continues to influence the tech landscape through its enterprise solutions.

Will BlackBerry Survive?

BlackBerry’s transformation underscores the dynamic nature of the tech industry. While the company has successfully pivoted to new markets, its long-term survival hinges on overcoming its tarnished reputation and competing in highly specialized sectors. As Matt Johnson notes, “BlackBerry invokes a human response... It’s almost like, ‘Oh, you ran a company? Oh, that’s so nice. Oh, I’m so sorry’.”Photo via Sherwood News // Pictured: A graph of BlackBerry's revenues from 2003 to 2023. Right now, the future isn't looking very bright for BlackBerry.

Legacy and Lessons

BlackBerry’s legacy is a testament to the importance of innovation and the dangers of complacency. Its rise highlighted the potential of mobile communication, while its fall served as a cautionary tale about the necessity of adapting to market changes. Johnson aptly summarizes, “The general legacy of the BlackBerry is one of a company that couldn’t see the writing on the wall... BlackBerry invokes a human response.”

Key Takeaways

• Innovation Leader: Pioneered the first smartphone with a full QWERTY keyboard, transforming mobile email.
• Cultural Icon: Became a status symbol, embraced by celebrities and business leaders alike.
• Competitive Downfall: The launch of the iPhone in 2007 led to a rapid decline in BlackBerry’s market share.
• Financial Decline: Stock price fell from $147 to around $3 by 2024, with significant losses in market share.
• Shift in Focus: Transitioned from smartphone manufacturing to cybersecurity and IoT services.
• Cinematic Portrayal: The film BlackBerry captures the dramatic rise and fall of the company, based on real events and personal accounts.

Financial Overview

Data sourced from Statista, Reuters, and company financial reports.

Conclusion

BlackBerry's journey from a pioneering smartphone manufacturer to a niche cybersecurity provider illustrates the volatile landscape of technology businesses. While its decline serves as a cautionary tale, its ongoing efforts in cybersecurity and IoT may offer a path to resurgence. The new film not only entertains but also preserves the memory of a company that once defined mobile communication, reminding us of the rapid pace at which technology and consumer preferences can evolve.

Recommended by the editors:

• What Happened to Apple AirPower? Why Was It Cancelled?

• Apple's October M4 Mac Event: What to Expect and What Might Change

• Apple Silicon vs. Intel: What You Need to Know

• Top Rumors: What to Expect From the iPhone 17 Air

• Surprising Specs Emerge About Apple’s Leaked M4 MacBook Pro Lineup

• More From Apple Scoop — America's Favorite Source For Apple News, Rumors & More