Inside the fall of BlackBerry: How the smartphone inventor failed to adapt
theglobeandmail.com
theglobeandmail.com
-- "How on earth did AT&T allow this ?" exclaimed an exasperated Lazaridis about the iPhone including a network challenging REAL browser
-- "Fortune 500 CIOs gathered...."
The one long running thread along all of this article is how clueless BBRY was as to who their REAL customers were. It was anybody but the people holding their handsets in the palms. The end users never mattered.
Then he put the leading blackberries up. He said that half of it was plastic buttons. But plastic buttons don't adapt to the context: they have something printed on them. So how do you solve this?
Then he said, it turns out we did solve this, in software: with soft buttons. Button text changes dynamically.
So, he would make one giant screen. Then he said, well, how do you interact with it?
Then he derided styluses as something you lose.
Then he showed off multitouch.
And that was the start of the fal of BlackBerry.
People reduce the value of ideas to 0. But look at this luminary: the single idea, that we want something smarter than any phone (as powerful as a computer ,which is what they shrank down) and easier to use than any phone.
Then, if you want something easier to use you can't have plastic keys with stuff printed on them.
Then, a giant screen.
Then, finger interaction.
So much complexity drilled down in such a high-level way. That is what separate(s/d) a $400B company from yours. Or from BlackBerry, which failed to adapt.
Pure idea.
The touch screen is superior for lots of uses but when it comes to entering none-english text (code, operating a shell) it falls flat on it's face.
Of course if we are talking about fantasy tech I want the Psion 5MX form factor with a 1920x1200 screen and capable of running something like Raspbian ;).
There are times when been able to login to a server via my mobile is really useful (generally to give a misbehaving process a good swift kicking) and any keyboard that would make a shell easier to operate would also make typing text messages, emails etc easier.
I didn't have to sell my parents on buying new iPhones, finally, when they saw me switch from typing rapid English with a friend complete with a random emoji, to Korean while chatting with a cousin halfway across the world (for free, I might add, BB really missed an opportunity there), to Chinese handwriting recognition while still talking to said cousin, and finally Voiceover (the screenreader) just to demo to my visually impaired dad. Then setting up Facetime on the big(ger than previous generation iPhones) iPhone 5 display sealed the deal, so to speak.
Touchscreens are fantastic for the average consumer, and they can be great for techies too. They might fall flat compared to physical keyboards but we're not the target audience ...and even if I'm not, I do so much more than entering code or shell commands every day that I'm willing to make that trade in a heartbeat. Just the flexibility of software keyboards switching languages being an everyday thing nowadays kind of blows my mind still, having come from the world of Graffiti and hardware keyboards for years before iPhone.
And for — as you demonstrate — not just entering non-english text but seamlessly switching between languages even within a single convo.
But what changed things wasn't that someone had one idea, it's that they were able to deliver on it.
Android did a very good job of adding touch, but that just shows that if you have a well-architected UI stack without a lot of legacy apps that would have funky behaviors, adding touch is very do-able.
Had the Android team done a less-thorough job adding touch, history might be very different. Microsoft is painted into a corner, with desktop apps adapting poorly to touch, and developers adapting poorly to "Modern" apps.
I'd argue that it wasn't because of doing a "good job" adding touch that allowed them to succeed. It was the price of free.
Even now all "touch" events are treated as 'click' events. And it's not easy to get access to the number of fingers on a view or to track them like iOS can.
And if this was the case, there were plenty of touch screen Windows Phones at the time. I think Android going touch would have been inevitable.
Having said that, if Apple didn't release the iPhone, the definition of touch on Google would probably have meant "with a stylus".
As others have stated, they could have sold high end custom Android phones and done well. They have/(perhaps had) a good brand. If they had released a solid phone like a nexus or galaxy they would have done fine. The execs in the story admitted that their technology was significantly behind. Once they realized that, they should have pivoted to Android. Perhaps keep working on their own stuff behind the scenes to try to catch up. But they can't keep releasing inferior phones and expect to stay on top. Of course, hindsight is 20/20, but there are a lot of people on the outside that have said blackberry is making the wrong decisions and headed to failure for quite awhile.
They wasted precious time and money acquiring and integrating companies like QNX when Android was there for the taking. Skinning it and rebuilding first-party BlackBerry apps on top of it would have been sufficient - the BlackBerry developers would have been happy to port their apps to Android.
There's no real good keyboard-centric Android phone out there these days. Motorola's continued to half-assedly release phones in the Droid lineup, but nothing has come close to the OG Droid. That is a niche that BlackBerry could have easily dominated.
Also have an HTC One and often use a SG4. Wow, awful. And I hate games.
I used to be a devout BlackBerry user, and could happily type out entire emails in meetings with my device under the table, send then, and be 100% confident that I had typed what I was planning on typing. Likewise I could type while walking, and only glance down to see what my incoming messages were. In many jobs, the ability to do that is essential to success. I can't come near that with any type of soft keyboard.
Having said all that, I don't use a BB any more - my 9900 died, and I bought a Nexus 4. I was looking at a Q10, but it was $300 more expensive than the Nexus, it still doesn't have anywhere near the number of apps, and I was no longer in a place in life where the key BB features - BBM and the ability to type long emails without looking - mattered any more.
That's not enough.
They probably should have realized their service had value and if they could have undercut the iPhone price, go after the texters, and hit the pay as you go market ; they could have bought themselves the time to think about what a Blackberry should be as opposed to a iPhone killer.
When Apple entered the market, they partnered with Google for Youtube content and with AT&T for a good data plan. They changed the game from talk and text to consumption of content: data, video, internet, etc.
RIM was stuck in the belief that phones were phones, and that their phones were better phones. The iPhone changed the market so that people wanted portable computers that they could access content with.
RIM never understood this.
First BB device on multimedia side of this trade-off is Z10. It has a big screen but short batter life. Otherwise fine device, I like it better than Galaxy S3.
“I said, ‘How did they get AT&T to allow [that]?’ Mr. Lazaridis recalled in the interview at his Waterloo office. “ ‘It’s going to collapse the network.’ And in fact, some time later it did.”
You have to give them at least a little bit of forgiveness for having to deal with AT&T/Verizon for so many years. I guess the constraints by their partners never allowed them to innovate.
Arguably, no one else could have won that battle. Gates, maybe, but he was out of the game by then.
Seems like they never stopped to think beyond the existing limitations, and what people would put up with for a better experience with the phone. Incumbents [1] tend to imagine that the problems they have identified (and decided to be unsolvable at the moment) are unsolvable for any newcomer too.
1. Motorola had tried touchscreen smartphones before [2] and they had failed. They did not understand at the time that the reason for the failure was not because users did not want touchscreen phones, but because their implementation broke no new ground. It was simply an archaic OS running on a touchscreen that required a stylus.
Its main drawback was the resistive screen and bad battery life.
The pattern of failure is predictable. When "executives" want to subsist on momentum, and view R&D as a pure expense (at a cost to their bonuses), the end is near.
christensen is correct in his observations on how disruptions happen, but his proposed countermeasures don't seem to work in a lot of real world situations.
BB tried to run the QNX as a separate disruptive unit which is a really bad idea if you intent to migrate your existing customers from A to B. announcing B will kill A before B is ready, etc.
BBM for all platforms would have been truly disruptive. Change the playing board, not just some pieces. WhatsApp, etc. show that this is indeed a market. BB had it right before them but got distracted by their handset/keyboard business.
The renaming of RIM to BB would have been the perfect moment to split the company. RIM for BBM, services, network - and BB for the hardware plus OS. RIM could have had a future. All easier said than done of course, but those execs earn a lot of money to execute exactly these kind of maneuvers.
It's easy to build a case that Linux is less than completely optimal as a kernel for a phone OS. It is much harder to enumerate all the tasks to beat Linux, and budget all the resources to do it, and not lose your nerve as parts of projects slip, and end up shipping something half-baked. And then you end up in a death spiral where you don't have the resources to fill the gaps and you never catch up.
say they would have switched to android - so what? now they would gave been on equal footing with samsung, etc, but with no reason for anyone to switch to BB at all. you disrupt into a completely different market, not the same with something that's now equal at best.
You're right. It's not disruptive at all, especially if all your core services (address book, calendar, etc.) are stored with a platform independent cloud service (read as: everything outside of iCloud, koff koff). Switching these days usually involves a short, tedious process of entering in all your passwords.
QnX is in many ways lightyears ahead of Linux. What do you mean with 'world class kernel'?
The money quote is that RIM thought the iPhone was impossible... It was not just beyond business scope - it was beyond their worldview.
"You guys could have avoided this entire conversation by just defining what Apple created as something more than a smartphone. What we call a smartphone today is a rather different than what was meant when the term was first coined.
The first smartphone was pretty much the Nokia Communicator back in the late 90s. It had data connectivity and some limited ability to run applications, and that pretty much what a smartphone was at the time. Today we take it to mean handheld wireless computer that happens to have a phone, but back then if you send a few packets you were a smartphone.
I was hired by RIM in 1999 just before they began work on their first phone and spent a good number years writing RIM proprietary protocol stacks that layered on top of the then new GPRS. Coming from a two-way pager background, RIM decided that phones should have two-way push synchronization of pretty much everything that Exchange provided along with a limited WML browser. The general thought was that phones would never have sufficient power density or radios sufficient bandwidth to allow anything more. That was incredibly predictably wrong, but it's how things went down.
Along with RIM was Ericsson, Palm, Motorola, and Qualcomm. Motorola came from a similar background as RIM and went on to build very similar devices. Both Nokia and Ericsson had come from phones and had decided feature phones should have far more sophisticated PDA functions. Palm started with PDAs then moved to the phones, but adamantly dismissed ideas like wireless synchronization for years making their first attempts at smart phone far more like early Nokia Communicators than early Blackberrys. Oddly enough, though Nokia made the first smartphone, which was followed by two more with RIM and arguably Palm in 20002, it was Ericsson that popularly coined the term in the mid 2000s.
So the point is that all these companies were fighting over what amounts to overgrown PDAs with phones and wireless stacks strapped on. Everyone assumed power density was no where even close to what was needed for general computing, that a full featured browser and heavy duty Internet services were impossible due to bandwidth and latency. Take a look at how our Java expert groups named standards, how people at the time talked about what features smart phones should have, and its clear that no one thought an iPhone was possible. Even Danger, which eventually went on to work on to create Windows Phone 7 and Android, was just working on a better Blackberry.
The iPhone did many amazing things, but what stands out in my mind was how it proved that these assumptions were flat-out wrong beyond any reasonable doubt. Apple pretty gave everyone the finger and said, "Fuck you guys we can build your distant impossible future today."
I left RIM back in 2006 just months before the IPhone launched and I remember talking to friends from RIM and Microsoft about what their teams thought about it at the time. Everyone was utterly shocked. RIM was even in denial the day after the iPhone was announced with all hands meets claiming all manner of weird things about iPhone: it couldn't do what they were demonstrating without an insanely power hungry processor, it must have terrible battery life, etc. Imagine their surprise when they disassembled an iPhone for the first time and found that the phone was battery with a tiny logic board strapped to it. It was ridiculous, it was brilliant.
I really don't think you're giving Apple enough credit here.
They did something amazing that many very prominent people in the industry thought was either impossible or at least a decade away, and they did it in a disgustingly short time frame."
But Apple altered their path and made something that customers wanted.
RIM stayed their course for too long, until they made what not enough users wanted, then tried to mimic everyone else (Apple, Samsung, et al).
My feeling was that they knew the path they were going to take but weren't ready and chose to control the conversation with misleading statements.
They also know how bad the memories are of the mainstream tech journalists -- which means they rarely get called out on making sneaky statements like the ones in this article: http://www.wired.com/gadgetlab/2010/02/steve-jobs/
No, what they did was prioritize their resources and release something that was good enough, and build on it. Release and iterate. They knew the first most important thing to get right was the web browsing experience which included a javascript engine. That is a user level experience that will sell more phones. They decided the Devs could wait, oh and what do you know the devs can still program the phone via the web interface so why not play that feature up -- 2 for 1 by focusing on the browser.
"A phone, an iPod, and a revolutionary new internet communicator." It as so important to the product it was in the lead. People had phones and ipods before, they had never had a fully functional mobile web browser.
I don't think having an OS level dev kit was ever part of the plan - I don't think there's any evidence out there to suggest that it was.
It might not have been part of the plan before the iphone was launched, but it certainly became part of the plan on day 0.
There were a combination of social and political forces that made the phone a success beyond its obvious technical prowess. Many people don't know this, but Apple had originally negotiated for a monthly residual fee from AT&T for each iPhone and Apple negotiated their own custom activation scheme.
For those of you not familiar with carrier land, this was the first time in the history of wireless networks something like this happened. Seriously, it was unheard of; Apple dictating terms to AT&T. Think of the ridiculousness of the situation; at the time AT&T is roughly 2x the size of Apple and gave the keys to the kingdom away. It's akin to IBM with Windows and DOS, which was again political and not technical.
The iPhone was a Trojan horse. The App Store opened up the carrier markets to apps. Do you know how apps got on phones before the App Store? Pre-loading: the ultra political game of getting manufacturers and power brokers within operators to load your application in the factory. That was basically the only way you'd hit a significant number of users, and even then you were probably buried under 4 levels of menus.
Apple blew that world apart, which was, again, political and not technical. Tons of other companies launched App stores before Apple but Apple executed.
These kinds of massive upheavals in the world don't happen with just technology. There's a tremendous amount of social and political capital required to make something like this work (and frankly some cajones and some luck).
What we saw from Apple was a perfect orchestration of technology, art and the body politic. It's the kind of thing you're lucky to see once in a generation, IMHO.
Edit: Before the iPhone we never had a single person camp out for a phone. On iPhone launch, we closed the store at 3pm to reopen for launch at 4, but people had already been lining up the day before O_O. It's hard to overstate what a shock this was to us. It had never happened before.
It would blow your mind if you knew what people were willing to do to get iPhones. The things I've seen; it's more like an intoxicant than a phone, but it is a great phone, isn't it? It's so hard to categorize the iPhone.
Edit 2: I knew that Blackberry was dead the day my friend walked into my office and demoed an SSH client on his iPhone for managing his servers remotely. Of course, his phone was jailbroken to do this, but nobody even wanted to jailbreak a blackberry. The iPhone is a computer and blackberry was a killer email experience with a phone stapled on.
Umm, yeah, I do. Handango and manual sync.
While Handango wasn't as frictionless as the App stores are today, it was popular, multiplatform and had a pretty good selection.
Pre-loads were multi-platform. You're talking about this from a consumer viewpoint, I'm talking about it from the commercial viewpoint. In aggregate the pre-loads market was MUCH larger than Handango.
Google search for "Caution: Installing this update will delete all the information on your PDA Phone."
Contrast this with OTA upgrades of iOS 7 and 30% adoption within 24 hours and the Android 4.2 OTA upgrades (global adoption rate obviously lower) ...
While you make a valid point of the state of OS upgrades at that time, I'm not sure this is a counterpoint to where and how people got apps.
Your right, it was more complicated, it was a combination with a little bit old and a little bit new.
1) partner apps first, third-party later
2) although some of "future" videos they made seemed to get it, but alas future videos don't make future products.
That's odd he would make such a fuss about an SSH client on his iPhone, coming from a Blackberry. I had SSH on my Blackberry Curve, though it wasn't in their marketplace and you had to seek it out via a simple Google Search.
After later attempting to manage servers remotely on Android (even with Swype), it couldn't beat having a real keyboard to do it with like I had on my Blackberry. Though I chose to have a more modern phone lacking a physical keyboard for other reasons than how useful the SSH client is without it.
> Of course, his phone was jailbroken to do this, but nobody even wanted to jailbreak a blackberry.
There really wasn't a need as you could sideload your own apps in the same way you do basically on Android. Even the Blackberry SSH client worked without such things. There was an awesome Zelda clone I would play in the same way on my old Blackberry (which was basically the only noteworthy game I ever saw on a Blackberry).
The iPhone was revolutionary in many ways, but those two points are a bit over-hyped and a tad disingenuous.
Yes, there was actually. Thankfully, the SSH client I used still has its update history from 2007 up so I can link it[1]. Blackberries never had restrictions on sideloading either as far as I know. That was something that came about with iPhone (unless one counts basic phones before that). Used it from around 2007 until I traded in my Blackberry Curve for a HTC Android Phone. Nice little client for the time and even supported ssh keys.
From the site site linked below:
> 27 February 2007
After another year of off-and-on development there is another stable release version. Thank you to everyone that helped test this release. The previous release version, 1.4.20, is still available for download, however please let me know if there are problems with the new stable release.
Version 1.6 includes support for Keyboard Interactive authentication and an HTTP proxy solution for people behind telco firewalls.
RIM innovated once and then stopped, but the world kept changing and passed them by.
Other than running their business more rationally to give themselves a better chance, I think that's about right. They could have been the third touchscreen OS, but they just didn't make it.
(I don't have the answer. Maybe it's just randomness.)
Blackberry was dead when they didn't recognize the iPhone's impact.
They could have easily have developed something to compete with it, while still having the keyboard line of products.
They scoffed at the iPhone, then ignored Android. Now they are paying for it.
Pride comes before the fall.
In order to understand Blackberry, you have to understand who their users were. These people are all in NYC, and these different values won't be obvious to the SF startup crowd.
If you've ever worked at a place where the execs frequently "lost" BlackBerries, they were up to something.
"The product was the BlackBerry Storm. It was the most complex and ambitious project the company had ever done, but “the technology was cobbled together quickly and wasn’t quite ready,” said one former senior company insider who was involved in the project."
"The product was months late, hitting the market just before U.S. Thanksgiving in 2008. Many customers hated it. The touchscreen, RIM’s first, was awkward to manipulate. The product ran on a single processor and was slow and buggy."
I doubt that would've saved Blackberry or even that they could've pulled it off. How could they convince (extort) carriers? Banning non-compliant carriers from selling Blackberry? Good luck with that (especially with other phone manufacturers pushing too).