1. THE RISE AND FALL OF
BLACKBERRY
PRESENTED BY :SARTHAK SHARMA
HIMANI AHUJA
HIMANSHU YADAV
ANKUR OJHA
HARSHITA YADAV
2. COMPANY HISTORY
• RIM was founded in 1984 by Michael Lazaridis, an engineering student at the University of
Waterloo.
• first product was an electronic sign system for an auto plant.
• later developed a barcode reader for film editing
• also involved in designing, building, and selling interactive pagers, radios that other
manufacturers could incorporate in their wireless products, and wireless modems for laptop
computers
• In 1992, RIM hired Jim Balsillie, a Harvard MBA, to run RIM’s business operations.
• Balsillie was appointed co-CEO with Lazaridis in 1992.
3. BLACKBERRY
• Released to the market in 1999.
• Device exclusively designed as an email pager, with which users can send and receive
emails freely and easily.
• the first always-on mobile email product with a keyboard.
• Well known for its high level security and fast response speed.
• features an innovation in mobile email connectivity and a breakthrough in handheld
technology.
• Was used by people with high social statues.
4. THE EVOLUTION OF BLACKBERRY PRODUCTS: A HISTORY OF
INNOVATION AND CHANGE
1999: First BlackBerry Device, the 850 pager, launched
BlackBerry 5810 (2002):
6. BLACKBERRY PEARL
IN 2006 The 8100 was the first Pearl model and it arrived with a 1.3-megapixel camera, as well as
microSD support for up to 8GB expansion, ringtones and a media player. This model, and the Pearl
models that followed, all featured a 240 x 260 resolution display, but they upped their camera to 2-
megapixels.
7. BLACKBERRY STORM
The first BlackBerry Storm arrived at the end of 2008, featuring a clickable touchscreen but no physical QWERTY
keyboard. This was the first time that BlackBerry had tried to move to full touch, with the iPhone starting to make
waves. The Storm didn't go down a storm.
The 9500 model, pictured, had a 3.2-megapixel camera and a 360 x 480 resolution display. There was also 1GB of
internal memory. In 2009, the Storm 2 arrived, 9550, with 2GB of memory, attempting to address the shortcomings
of the original.
8. 2013–2016
• The company’s 2013-2016 Annual Reports emphasized the many product and business developments
undertaken and identified future initiatives that would be necessary for a successful strategy. Despite these
initiatives, revenue plummeted after peaking in 2011. In fiscal 2014, the company had a write-off of $2.4 billion
for BlackBerry 10 excess inventory. Exhibit 2 shows revenue and income (loss) for the years 2011 to 2016.
From a high of almost $20 billion in 2011, in 2016, revenue was about one tenth the 2011 level. Exhibit 3 shows
the share price.
https://www.macrotrends.net/stocks/charts/BB/blackberry/stock-price-history
9. In July 2016, BlackBerry
announced that it would
discontinue its classic
smartphone with a tactile
keyboard and touchscreen, less
than two years after launching
it.
Device sales in the most recent
quarter were below 500,000
units (Apple sold 40.4 million
iPhones in its most recent
quarter). Despite calls to stop
making phones in favor of
focusing on its software
business, CEO John Chen
reaffirmed his commitment to
stay in the hardware market.
10. 2005–2007: COMPETITORS AND NEW
ENTRANTS
▪ In 2005, there were 100 wireless carriers selling Blackberries.
▪ RIM was also pushing the electronics companies, such as Motorola, to
include BlackBerry software on their phones and other devices.
▪ BlackBerry launched BlackBerry Messenger (BBM).
▪ Nokia, Samsung, Siemens, Motorola, and HP had also launched, or were
planning to launch, wireless email devices
11. APPLE LAUNCHES IPHONE IN 2007
▪ In 2007, the first iPhone released-a new era.
▪ controlled by touch, play music, and surf the internet.
▪ RIM shares dropped about 10% after the iPhone announcement.
▪ Without obvious decline in mobile sale, the RIM underestimated this
competition.
▪ In 2007, Blackberry mobile won the market but lost the future to iPhone
mobile.
12. WIRELESS CARRIERS & SMARTPHONE
COMPANIES
Carriers were the King
Carriers dictated
specifications of handsets.
Aggressive Carrier Pricing
for calls and messages
Early 2000s
Benefitted from expanding
BlackBerry’s data traffic &
growth in RIM’s corporate
consumer base
RIM’S $10 fee a concern
Launch of iPhone
Verizon rejected Apple’s
offer of partnership &
Cingular rejected
BlackBerry’s Offer
5 Year Contract
Cingular merged with
AT&T agreed on design
control, unlimited
bandwidth, maps and other
internet services
BlackBerry Storm
Verizon wanted a
competitive touchscreen
so they launched
BlackBerry Storm with RIM
in 2008
Upgrading to 4G
Storm proceeded to be a failure ,
iPhone’s sales soared
Verizon decided to invest in
Android since RIM wasn’t
convinced about 4G and had no
products
13. 2012 - A NEW CEO
▪ Thorsten Heins joined in 2007 after serving as CTO in Siemens
▪ COO to CEO in 2012
▪ Focused on BlackBerry 10 instead of carrier’s adopting with RIM’s BBM
instant messaging service along with Lazaridis, Balsillie resigns from board
▪ Lazaridis left the board in 2013 and sold majority of his shares
▪ Market Capitalization went from $40 billion to $6billion in a year
▪ 1500 jobs cut , non survival of RIM suspected as company announced
losing money in the last quarter