As you may know from previous blog posts (see 'Are We Trapped Online?'), I am a Blackberry owner, a phone and a company that currently has one of the worst reputations in the industry. In fact, I have only just received my phone back from repair because the entire handset - keypad, trackpad, everything - stopped working all of a sudden as I was actually in the process of using it. This was before I had even owned the phone for six months, I should add, which only reinforced the poor reliability of the brand which has been commented upon frequently in the media. I cannot count the number people I know who have owned a Blackberry phone, and have proceeded to switch to an iPhone or an Android equivalent.
Has it always been like this?
Blackberry is a world away from its glory days; the previous decade saw the euphoric introduction of a sleek, compact and revolutionary device that allowed the user to email from their phone. From their phone.
If we look back to 2003, the utility provided by Blackberry was unparalleled in the phone industry, with businesses and their employees, in particular, seizing the opportunity to pack a variety of office facilities into their pocket. The appearance and capabilities of the Blackberry blew its competitors out of the water, and the company RIM (producers of Blackberry) went from strength to strength. Its fortunes were such that it was fondly nicknamed 'the Crackberry' by its consumers, referencing the smartphone's ability to create addicts of its users. In 2009, RIM soared magnificently to its peak market share of 21% (down to approximately 12% by 2011) and saw tremendous revenue from its global market. In contrast, figures published mid-2012 revealed a measly 6.4% market share for RIM.
What caused such a severe decline for Blackberry?
As a user myself, I vividly remember the October 2011 incident where 70 million Blackberry customers worldwide suffered from long-term service faults and delays which lasted three consecutive days. It was a scandalous event for RIM, and received international coverage in the media, as customers across all continents were hit by email, internet and BBM (Blackberry Messenger) blackouts. Consequently, a mass movement of consumers from Blackberry to its competitors occurred.
Of course, we cannot say that a simple software malfunction (despite its scale and duration) was the sole factor of Blackberry's plummet into shame. The emergence of Apple's iPhone and the various Android phones on the market have contributed enormously to the decrease in Blackberry sales. By late 2012, Android phones occupied 51% of the market, with the iPhone swallowing most of the remainder. I believe one of the greatest reasons for Blackberry's decline was simply the fact that it came first; it was the first successful and mass produced smartphone on the market, and thus it had to make all the mistakes first.
These mistakes were observed closely by the competition, and allowed them to develop products that overcame these obstacles. Blackberry's initial success in the face of its competitors gave it a seemingly immortal and invincible status, and as a result, Blackberry's innovation gradually slowed. The existing status of its products, and its dismissal of its competitors who waited in the wings, meant that whilst companies such as Apple, Samsung and Microsoft were working furiously to develop phones with capabilities that rivaled and, arguably, surpassed those of Blackberry, RIM failed to respond with newer models that held on to the company's dominance in the smartphone industry.
A former RIM employee told The Guardian: "RIM grew in popularity too quickly, and got complacent over the iPhone."
This extends beyond the development of the handset itself; the app market is a huge source of revenue for the smartphone industry, and developers have stopped creating software for RIM because it presents too much of a liability in comparison to its rivals. Millions of apps are created for Apple, and this provides yet another attraction for potential customers. The lack of development for RIM represents one more blow to the future of Blackberry smartphones.
Is this the end for Blackberry?
RIM have launched the Blackberry 10 OS, which many are called 'RIM's lifeline'. The future of the company hinges on this new model, and the majority of opinion shows that it is unlikely to save it.
Finance and business experts have said that only time will tell, but time is getting on and Blackberry have yet to make a reappearance as a major player in the smartphone industry.
Here is the advertisement Blackberry shared for their new model:
Comment below and share your thoughts.