End game approaches as BlackBerry sales plummet
Like countless high-tech companies that captured and lost imaginations and dollars, BlackBerry, a giant of the pre-iPhone era, has faded with remarkable speed. After years of dwindling sales, the company said on Monday it was exploring "strategic options" - business code for searching for a saviour.
For the moment, few investors seem to want to buy BlackBerry or, for that matter, its newest products. Unless a suitor emerges, BlackBerry risks joining the ranks of technology has-beens such as Palm, Gateway and Commodore.
The abrupt decline of BlackBerry illustrates how consumers and investors demand almost instant change these days, especially from tech companies. The window for redemption for a tech company that misses a step can be very tiny.
Four years ago, BlackBerry accounted for a massive 51 per cent of the North American smartphone market, according to the research firm Gartner, and Mike Lazaridis, BlackBerry's co-founder and then co-chief executive, was promising an even brighter future. But then the company responded slowly to new iPhone and Android devices and sales evaporated. Now, the company has just 3.4 per cent of the market and Mr Lazaridis is gone.
BlackBerry's board and chief executive Thorsten Heins portrayed Monday's announcement as part of a new beginning, but few analysts and few in the tech community were buying that idea.
Instead, BlackBerry is often grouped with other once-powerful tech companies, such as Nokia and Dell, that are now struggling and appear to have hard roads back to growth, if any at all.
"Acquiring Blackberry [would be suicide]," said Jean-Louis Gassee, a former Apple executive who was chairman of PalmSource, an unsuccessful attempt to turn Palm, once the leader in hand-held computing, into a software company. "The brand is tarnished."
While not everyone is as pessimistic, there is little expectation the move by BlackBerry would bring much wealth to the company's beleaguered shareholders.
Frequently Asked Questions about this Article…
The article says BlackBerry’s sales collapsed because the company was slow to respond to the iPhone and Android devices. That failure to adapt led to sales evaporating and market share dropping sharply — a cautionary example for investors about how quickly tech leaders can lose ground.
"Exploring 'strategic options'" is described in the article as business code for searching for a saviour. It can include anything from seeking a buyer to restructuring. The company framed it as a new beginning, but analysts were skeptical and the article says there is little expectation this will bring much wealth to beleaguered shareholders.
According to the article (citing research firm Gartner), BlackBerry held about 51% of the North American smartphone market four years earlier, but that share fell to just 3.4% by the time of the report — a dramatic decline that underscores the scale of the company’s fall.
The article notes Thorsten Heins was the chief executive at the time of the announcement. It also points out that co-founder Mike Lazaridis is gone, highlighting significant leadership change as the company faces its crisis.
No — the article says few investors seem willing to buy BlackBerry or its newest products. Analysts and much of the tech community were skeptical that the company's move would attract a suitor or restore its fortunes.
The article quotes former Apple executive Jean‑Louis Gassee saying, "Acquiring Blackberry [would be suicide]," and adds his view that the brand is tarnished. That reflects a strong skepticism in the tech community about whether an acquisition would be a smart deal.
The article warns that unless a suitor emerges, BlackBerry risks joining the ranks of once‑powerful tech has‑beens such as Palm, Gateway and Commodore. Analysts implied there is little expectation of a quick recovery for shareholders without a major strategic move.
The article highlights a clear lesson: in modern tech markets consumers and investors demand almost instant change. For tech companies that miss a step, the window for redemption can be very tiny — a reminder for investors to watch how quickly companies adapt to new competition and technology shifts.
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