What Happened To BlackBerry?

Summary

The script traces the rise and fall of BlackBerry, once a dominant smartphone brand, peaking in the 2000s with a 43% market share. Despite attempts to compete with touchscreen phones, BlackBerry's popularity plummeted by the early 2010s. Under CEO John Chen, the company pivoted from hardware to software, focusing on cybersecurity and the automotive industry. Its QNX operating system now powers infotainment and driver-assist systems in millions of cars, positioning BlackBerry for a potentially profitable future, though not at the scale of its past smartphone dominance.

Takeaways

• 📱 BlackBerry was the most popular smartphone brand in the US during the mid-to-late 2000s, peaking at 43% market share.
• 🛡️ BlackBerry was known for its physical keyboards and strong cybersecurity features, making it a favorite for secure communications.
• 📉 The company’s stock peaked at $150 in 2008 but dropped to $5 by 2022 as BlackBerry devices became obsolete.
• 📅 In January 2022, BlackBerry discontinued its classic device, officially ending its era as a smartphone maker.
• 🏎️ BlackBerry shifted focus to software and cybersecurity, with a strong presence in the automotive industry through its QNX operating system.
• 💼 The QNX system is now used in over 215 million cars, powering infotainment and securing connected and autonomous vehicle systems.
• 🔐 BlackBerry now operates two main business units: cybersecurity and IoT, with a significant focus on automotive software.
• 🚗 BlackBerry works with major car manufacturers like Ford, Audi, and BMW, and dominates the market in embedded car software.
• ⚖️ Despite its strong software transition, BlackBerry faces intense competition in the cybersecurity space from companies like Microsoft and CrowdStrike.
• 🔄 While BlackBerry’s transition from hardware to software has been tough, it is now positioned for potential long-term growth in automotive IoT and cybersecurity.

Q & A

What was BlackBerry's peak market share in the US during the mid to late 2000s?

BlackBerry held about 43% of the US smartphone market at its peak in the mid to late 2000s.

What was one of BlackBerry's key selling points that differentiated it from other smartphones?

BlackBerry was known for its strong cybersecurity and privacy features, which made it particularly appealing to users concerned about security.

When did BlackBerry stop supporting its classic devices?

BlackBerry officially stopped supporting its classic devices in January 2022, marking the end of an era for its smartphones.

What was the first BlackBerry device capable of sending and receiving data?

The first BlackBerry device capable of sending and receiving data was the RIM 901, which used an early wireless data network.

When did BlackBerry reach its fiscal peak, and what percentage of its revenue came from hardware?

BlackBerry reached its fiscal peak in 2011, with nearly $20 billion in revenue, of which over 80% came from hardware sales.

What was BlackBerry's response to the rise of touchscreen smartphones like the iPhone?

BlackBerry attempted to release touchscreen devices such as the Storm in 2008 and the Z10 in 2013, but these efforts failed to keep up with the competition.

Who took over as CEO of BlackBerry in 2013, and what was his initial strategy?

John Chen took over as CEO in 2013, and his initial strategy was to pivot BlackBerry from hardware to software, focusing on cybersecurity and the Internet of Things (IoT).

What key acquisitions helped BlackBerry transition from a hardware to a software company?

Key acquisitions included QNX in 2010, which became central to BlackBerry's automotive software business, and Cylance and Good Technology, both focused on cybersecurity.

What role does BlackBerry play in the automotive industry today?

BlackBerry's QNX software is embedded in over 215 million cars, powering infotainment systems, advanced driver-assist systems, and securing vehicle connectivity.

What are the two main business units of BlackBerry today?

BlackBerry's two main business units are its cybersecurity business unit and its Internet of Things (IoT) business unit, with a focus on automotive software.