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  • BlackBerry Ignored the Threat of the iPhone Due to Misunderstanding the Market


    According to an excerpt from an upcoming book that details the rise and collapse of Canadian smartphone manufacturer, BlackBerry; the company which was previously known as RIM, had some appreciation for the first-generation iPhone back in 2007 but didn’t see the device as a threat given RIM’s core customers. The excerpt from Jacquie McNish and Sean Silcoff’s Losing the Signal, as published by the folks over at The Wall Street Journal, mentioned the following regarding the matter:

    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.
    The company firmly believed that its central business customers cared more about security and efficient communication rather than watching YouTube video and tending to some Internet distractions. At the time, most phones had limited Web and video functionality along with clumsy button-based browsers. As many of you know the iPhone was the first smartphone to bring a web browser that was even remotely comparable to a desktop browser as well as touting an all-touchscreen interface. Furthermore, Apple negotiated a deal with AT&T at the time to allow unlimited data, something that was previously unheard of.

    At the time, RIM executives didn’t fully understand the iPhone or why exactly people were buying it. The company did try to respond to the threat of an iPhone in conjunction with Verizon with a touch-based BlackBerry Storm but the product ended up shipping too quickly, all of which resulted in a botched phone that many people returned despite initially strong sales. The Storm not only hurt RIM financially but also damaged the company’s reputation and partnership. After the whole fiasco, Rim had no idea which path it needed to go down to be successful. One of the company’s former CEOs, Jim Balsille, had the following to say regarding the matter:

    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.
    Those of you interested in reading more about the topic should look out for the book, Losing the Signal, which is set to be made available for $20.81 on Amazon and set to ship starting tomorrow, May 26th.

    Source: The Wall Street Journal via AppleInsider
    This article was originally published in forum thread: BlackBerry Ignored the Threat of the iPhone Due to Misunderstanding the Market started by Akshay Masand View original post
    Comments 6 Comments
    1. Sk37cH's Avatar
      Sk37cH -
      This sounds like it's worth a read. Never in the market for a Blackberry, though a company that went from multiple high end contracts with government agencies, to where they are now..... something interesting went down, and it wasn't just their stock price.
    1. AKCHRIS's Avatar
      AKCHRIS -
      My First Smartphone WAS a BB, the 8310 Curve Red, actually liked it..and thought the iPhone was a Joke...until i bought the 3G and heard of a think known as Jail breaking and Have been an Apple Fan EVER Since.
    1. peacedog's Avatar
      peacedog -
      Blackberry is like JC Penney and Sears. I'm sure all of them make quality stuff, but they are boring. I don't expect Apple to last forever either.
    1. Magnum's Avatar
      Magnum -
      Duh?
    1. Sage I's Avatar
      Sage I -
      Prolly thought they couldn't fall that hard that fast because they were on top of the mobile phone world... Kingdom rise and kingdom fall.
    1. Al226's Avatar
      Al226 -
      Quote Originally Posted by AKCHRIS View Post
      My First Smartphone WAS a BB, the 8310 Curve Red, actually liked it..and thought the iPhone was a Joke...until i bought the 3G and heard of a think known as Jail breaking and Have been an Apple Fan EVER Since.
      Amen!!!!