It is not easy being a fan of BlackBerry these days. In fact it hasn’t been easy for years. Especially with the recent onslaught of negative press, not just from the media, but from BlackBerry themselves too.
The press release that was released a few weeks back was depressing as hell. It was like an admission of defeat, and a premature one I might add. It hasn’t even been a year yet and they’re giving up!? BlackBerry fans are still going strong, and the company themselves are giving up? That was what I felt for weeks.
This was a news that even my local TV news reported. "BlackBerry is struggling, and exploring strategic alternatives like the sale of the company amongst other options." Not great news. Bad for brand perception.
Upon that news, how many consumers who were looking to buy a BlackBerry 10 device decided not to? How many developers who were planning to build BB10 apps has now put them on hold? How many companies who might be looking at upgrading to BES10 and BB10 devices have decided to put it on hold? How much did this press release affect BlackBerry Employees’ morale? It was a move that really damages the company as a whole, inside and out.
Then came the report from WSJ and I quote:
"BlackBerry Ltd, the beleaguered smartphone maker that has put itself up for sale, is aiming to run a fast auction process that could be wrapped up by November, according to people familiar with the matter."
Normally I wouldn’t take these type of news that seriously, especially when it says “according to people familiar with the matter”. But along with the press release, the news doesn’t seem that far-fetched after all.
It was genuinely depressing as hell. I was genuinely disappointed in the company that they were giving up so soon before even giving BlackBerry 10 a fair shot, and pushing it as hard as they could for as long as they could.
I was beginning to take the stance that BlackBerry 10 was a product that was there just to build value for shareholders, and not because they genuinely want to push the industry forward into this “Mobile Computing” they have been talking about. Not because they wanted to build a product that could change and improve the way people use their mobile devices. BlackBerry 10 was just a stepping stone to the goal of building enough value in the company so that when they sold it, they still have value. I mean it has only been 2 quarters that BlackBerry 10 has been in the market. Whilst 2.7 million BB10 device sales last quarter isn’t inspiring or even near what I had hope, it wasn’t catastrophically bad. This was similar to the first few quarters of Nokia Lumia sales. They could have pushed harder. But with the press release and negative sentiment and uncertainty surrounding the company, I would be very surprised (pleasantly) if they sold more BB10 devices this quarter.
All I can say is that BlackBerry is in a state of uncertainty.
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This was where I wanted to end my post. A rant at BlackBerry from a fan of their products. But then, in yesterday’s podcast Chris Umiastowski mentioned something that made me gave it a second thought. “What is heck is BlackBerry 10?” He then goes on to point out a particularly point from the press release.
"BlackBerry Limited, a world leader in the mobile communications market, today announced that the Company’s Board of Directors has formed a Special Committee to explore strategic alternatives to enhance value and increase scale in order to accelerate BlackBerry 10 deployment. These alternatives could include, among others, possible joint ventures, strategic partnerships or alliances, a sale of the Company or other possible transactions."
Keywords, "to enhance value and increase scale inorder to accelerate BlackBerry 10 deployment". Re-reading the press release with this in mind, it kind of gave me a different perspective.
Skipping the parts about Prem Watsa resigning from the board, as well as who is part of that committee.
"During the past year, management and the Board have been focused on launching the BlackBerry 10 platform and BES 10, establishing a strong financial position, and evaluating the best approach to delivering long-term value for customers and shareholders," said Timothy Dattels, Chairman of BlackBerry’s Special Committee of the Board. "Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives."
Keywords, “Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives.” My take now is that by competitive landscape, they meant that the adoption of BlackBerry 10 and BES10 hasn’t been fast enough for their liking. A lot of companies has the scale to do their own integration, like Apple for example. They have a ton of products that they can tie in together and create a larger value-add for consumers. Like Apple has their iPhone, Apple TV, iPad, iCloud, Mac, iTunes Store, Maps, etc, which they could all do themselves with little need to rely on others. For example I could AirPlay from my iPhone to my Apple TV seamlessly and easily.
And this is certainly something that most manufacturers are striving for. That was certainly the impression I got from Sony during their keynote at IFA 2013. Manufacturers utilising Android probably has a little less to worry about since it is open-sourced (more support such as Pebble watch, Chromecast, etc). But not BlackBerry 10.
BlackBerry knows that they can’t do that, not with the resources they have. They are trying to find partners they can work with instead. At the rate that other manufacturers are pushing forward in this direction, BlackBerry needed to move fast, before they drop so far behind that any recovery would be impossible. Which is why they said "…we believe that now is the right time to explore strategic alternatives.” Even if it meant that they have to sell the company to make that happen, to accelerate the deployment of BlackBerry 10.
At least this is my take of that paragraph.
Thorsten Heins, President and Chief Executive Officer of BlackBerry, added, “We continue to see compelling long-term opportunities for BlackBerry 10, we have exceptional technology that customers are embracing, we have a strong balance sheet and we are pleased with the progress that has been made in our transition. As the Special Committee focuses on exploring alternatives, we will be continuing with our strategy of reducing cost, driving efficiency and accelerating the deployment of BES 10, as well as driving adoption of BlackBerry 10 smartphones, launching the multi-platform BBM social messaging service, and pursuing mobile computing opportunities by leveraging the secure and reliable BlackBerry Global Data Network.”
Again, Thorsten Heins goes on to say "…accelerating the deployment of BES 10, as well as driving adoption of BlackBerry 10 smartphones, launching the multi-platform BBM social messaging service, and pursuing mobile computing opportunities…” Reinforcing the idea that this “exploring strategic alternatives” was done with that in mind.
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With this perspective in mind, the optimistic part in me can hope that whatever decision they come to, whether it results in a sale of the company (or part of) or a partnership, the end result would be for the goal of “accelerating the deployment of BES 10, as well as driving adoption of BlackBerry 10 smartphones”. With this perspective in mind, and that the press release is hurting the brand, I can certainly understand why the BlackBerry board is trying to push for a resolution as quickly as possible to clear the uncertainties surrounding the company.
Of course it then goes back to the question of “What the heck is BlackBerry 10?” Is it the OS that us consumers are using on our Q10s, Z10s, and Q5s? Is it simply a platform that could be licensed to anyone who is interested? (meaning BlackBerry could stop making hardware) What the hell is it?
I have no clear direction of it yet, but with my optimist hat on, it makes the news taste a little less bitter, and a little easier to swallow. I certainly would like BlackBerry to succeed on its own term. Even having used (and still own) products from all major competing platforms (iOS, Android, Windows Phone), I still like BlackBerry 10 best. It still suits my current needs best at this point in time. But that seems rather unlikely to happen.
With my realist hat on, It could be exactly what most people think it is. BlackBerry is giving up. No matter which hat I have on, the one thing that stands true is that change is definitely in the air (sorry Kevin, borrowed this line from you).
With that TeamBlackBerry, I leave you with this song. Let’s hope for the best, but be prepared for the worst.
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