The Rise and Fall of BlackBerry

BlackBerry is a Canadian brand of smartphones and other mobile devices and services. It pioneered integrating email services into mobile phones with a proprietary QWERTY keyboard. BlackBerry became an instant hit among well-known politicians, corporate leaders, and the rich and famous. However, after dominating the market, the brand was discontinued. What happened to BlackBerry? In this article, you will find the intriguing stories behind the rise and fall of BlackBerry. 

History of Blackberry

In 1984, two engineering students from Canada established Research in Motion (RIM). Mike Lazaridis and Douglas Fraggin worked on wireless motion technology. They also ventured on random projects, such as LED systems for General Motors (GM) and a local network for IBM.

Five years later, the Canadian phone company Rogers worked with RIM on its mobile text network, a system designed for messaging. This positioned RIM as an early leader in mobile messaging.

In 1996, RIM launched its first two-way messaging pager. One of the initial products to bear the ‘BlackBerry’ name was among the first pagers with a full QWERTY keyboard.

The Rise

To give you an overview of what happened during the glory days of the smartphone, here are the milestones of Blackberry:

1999

Research in Motion (RIM) introduced BlackBerry, which focuses on smartphones. The company produced the 850 pager, which supported “push email” from the Microsoft Corp Exchange Server. In 2000, BlackBerry unveiled its first product launch, the BlackBerry 957.5.

With the increased use by enterprises and governments, RIM’s revenues grew exponentially from 1999 to 2001. RIM also expanded the functionality of the BlackBerry Enterprise Server (BES) and BlackBerry OS. 

2000s

During this period, RIM experienced spectacular growth,  making its co-CEOs billionaires. Sales peaked at almost $20 billion in 2001. Likewise, BlackBerry’s global expansion and the addition of new products happened in the golden period of 2001 to 2007.

After its successful venture in the enterprise market, BlackBerry expanded into the consumer market. The BlackBerry Pearl was very successful. It was followed by the release of the Curve and Bold product lines, which were also well-received by consumers.

Cultural Impact

BlackBerry’s high-quality features change the way people use cell phones. BlackBerry became popular in boardrooms, offices, and even fashion statements. BlackBerry’s secure encrypted network and military-grade safety framework made it a preferred choice for business professionals, including the FBI, CIA, and the White House.

The Fall

Complacency and competition are the major factors in Blackberry’s sudden decline in popularity. BlackBerry failed to innovate and adapt to changing market dynamics, and with the emergence of the iPhone and Android, BlackBerry’s popularity started to fade. 

BlackBerry’s stock peaked at a historic high of $147 in 2008. Apple’s iPhone, the first popular touchscreen phone, had debuted in the previous year. BlackBerry initially disregarded it as a frivolous device for younger consumers. However, the iPhone’s overwhelming popularity marked the beginning of BlackBerry’s decline.

The iPhone wasn’t limited to individual users. It also attracted business leaders, invading BlackBerry’s core market. The market was soon saturated with similar email-capable smartphones, but BlackBerry retained its reputation as a “business email device.” Many people at that time had to carry two phones – a BlackBerry or personal phone for work.

To compete with the iPhone, BlackBerry introduced its first touchscreen phone, Storm, in 2008. However, after high initial sales, complaints about the device’s performance started pouring in. This was the first time that investors, analysts, and the media began to worry about BlackBerry’s business prospects.

In September 2010, Comscore reported that RIM registered a 33 percent market share in the U.S. smartphone market. Consequently, the brand expanded its global user base to 41 million subscribers. That was the peak of RIM’s market penetration in the U.S. After that, the company continued to lose customers due to the increasing popularity of Apple’s iOs and Google’s Android operating systems.

Continued earnings losses resulted in further declines, with the most prominent first-quarter loss in 2014 amounting to $84 million. Finally, the remaining devices were killed off in January 2023.

Corporate Comeback

BlackBerry’s stock has been a rollercoaster ride, driven by many comeback attempts and corporate developments. The company tried to reinvent itself with acquisitions like QNX and new products like the BlackBerry Playbook, but these efforts fell short. Despite occasional positive spikes, BlackBerry’s stock ultimately faced a downward trend throughout the mid-2010s.

Today, BlackBerry helps organizations in protecting against cyber threats. The brand has evolved into a leader in cybersecurity, supporting businesses, government agencies, and safety-critical institutions of all sizes in securing the Internet of Things (IoT).

Trivia: When Was the BlackBerry Movie Premiered?

The “BlackBerry” movie premiered across Canada on May 12, 2023. It tells the story of the three men who turned their ideas into the world’s first smartphone. The movie was described as more satire than history and is loosely based on the 2015 book “Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry.”