Blackberry Ceases Phone Manufacturing

The only thing that I’m wondering, is why it took so long…

BlackBerry logo

Over the past five years, I’ve been very bearish on Blackberry and RIM. I’ve covered this extensively when I was Managing Editor at BYTE, the reincarnation of BYTE Magazine. Here’s a quick sample:

I have also covered this topic somewhat on

  • There was no 3rd Party Developer support
  • No available apps
  • No software store
  • No eco system
  • No way to manage, play or obtain digital content

However, I don’t want to spend the next 300 or so words harping on or reiterating what I’ve been saying for the past four to five years. Instead, I want to talk about what Blackberry has to offer the market now:

A fire sale on used office furniture…

If Blackberry is no longer making phones, their mantra of, “the world wants our devices and services because they love our keyboards,” isn’t true. No one seems to care or give a hoot about their keyboards. If they did, then they would have flocked to those devices and the iPhone or the latest Android device wouldn’t be as popular as those devices are.

The truth is no one gives a rat’s patootie about a physical keyboard in 2016. It’s all about apps and a functioning ecosystem, and Blackberry doesn’t have one. So what do they have..??

Messaging services.

Messaging services… which are no longer driving the industry. Messaging services… which now have a number of non-proprietary alternatives which don’t cost an arm and a leg. Messaging services… which now don’t require dedicated hardware or a certified, dedicated IT resource to manage. Messaging services… which now have other encrypted alternatives like Apple’s iMessage or Facebook’s WhatsApp. Messaging services… which at last examination, still ran through a centralized hub in Toronto, and were subject to outages if the messaging network were compromised or was negatively impacted by some kind of hardware failure or internet service interruption.

So yeah… if some, part or all of the above is true, just WHAT does Blackberry have to offer the world..?? As I said – a fire sale on used office furniture.

In truth, Blackberry has very little to offer anyone at this point. Now that their hardware is gone, the only thing they have left is their messaging services and software products, and I have NO idea who would really be interested in those.

While thinking about that point, I immediately went to folks like a state government or the Federal Government; but they can make use of existing mail server platforms like Exchange for email and use, for example, WhatsApp, to send and receive secure messages (though I doubt that the FBI, CIA or NSA will actually USE WhatsApp…). Some may argue, that there isn’t even a need for secure messaging in Washington DC; but I digress… My point is there are cheap, affordable alternatives to Blackberry’s software offerings, on platforms with hardware people actually want to use.

Blackberry’s business plan options now are bleak. According to an article by Roger Cheng, of C|NET and published on MSN Money,

“Even BlackBerry’s final Hail Mary, its embrace of the Android operating system, was the brainchild of veteran phone executive Ron Louks. He assumed that wider access to Android apps, combined with its reputation for security, would turn some heads in the corporate world. It did not. The first Android-powered phone, the BlackBerry Priv, was a high-end premium device that landed with a thud… Louks left BlackBerry in May.

…[Blackberry’s CEO, John] Chen believes BlackBerry will live on, but focused solely on software.”

Software that no one is really going to want…

The world has moved on from Blackberry. Blackberry is a messaging dinosaur that had is day and was driven out to extinction by the meteor that is the both the iPhone and is every Android device…ever. The enterprise has moved on to messaging alternatives that more easily allowed IT mail administrators to manage any device that every Tom, Dick and Harry brought to the office via their company’s BYOD initiative.

The big problem here is that Blackberry is dead. The world – including me – has been predicting and foretelling the world of its demise over the past four to five years. It really seems as though John Chen is the ONLY person in the world that either didn’t get the news or completely ignored it.

It just seems a little silly, really.

If you have Blackberry stock, now is the time to dump it before the fire sale begins; because when that starts… it will already be too late. I don’t know what kind of real value Blackberry intellectual property really has right now, or whom would want to purchase it.

As of this writing, Blackberry’s stock (NASDAQ: BBRY) was at 8.29, down 0.04. Its high over the past year was 9.42, back near the beginning of 2016. It’s all time high was 138.87 near December of 2008. Looking at those graphs, the stock seems to be on life support at best.

The party is clearly over. It’s just the host that doesn’t seem to know…

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Fairfax Deal Falls Through – Blackberry on the Skids?

Sometimes I really hate it when I’m right…

The clock has been ticking for Blackberry for quite some time, and today, the alarm went off. You know, I really feel bad. I really do. I hate it when I’m right, but some things really just can’t be helped.

I’ve been down on RIM/Blackberry for quite some time. I’ve been calling for them to see the writing on the wall since late 2011. Its seems now, they actually do know “for whom the bell tolls.” This time, it tolls for Thorsten Heins as Blackberry ousts not only him, but many of its senior directors as well in a last ditch effort to salvage some value out of the organization before it’s too late.

The buy-out by Fairfax Financial isn’t going to take place, and that’s really too bad. It was, in my opinion, Blackberry’s last, real chance to maintain any of its identity. Instead of the buyout, which would have been a nearly $5.0B deal, Fairfax is going to try to raise about $1.0B by selling convertible notes in a bid to stabilize the organizations shrinking operating capital. Recently, the company reported a quarterly loss of about $1.0B and burned through an additional $500M in cash.

Sybase’s former chairman and chief executive of its enterprise technology firm, John Chen, will take over as CEO and as chairman of its board. Fairfax’s CEO, Prem Watsa will act as lead director and the chair of Blackberry’s compensation committee. There are specific, unspecified conditions that must also be met for the deal to close, which also includes approval from the Toronto Stock Exchange.

Trading of Blackberry shares was briefly halted, prior to the Nasdaq actually opening, as they lost nearly 21% in premarket trading. As of 2 PM EST, BBRY shares were still down 1.28 to 6.49.

wake up blackberry

After the operating capital is secured, I’m not certain what Blackberry’s Plan B moves are. However, if they’re smart, those moves should include finding some kind of buyer for their IP before it becomes completely irrelevant. Blackberry’s security technology is great for mobile email, but many of its current customers are moving to other solutions as they weren’t able to make their latest OS gain any traction with the consumer market and have only had mild success in the enterprise market. Divesting the organization’s assets seems the only real alternative for them to get any return on their investor’s money… before the world completely moves on.

 

I’ll be following this in the coming days and weeks to see if and what John Chen decides to do with the organization. Please watch Soft32.com for updates.

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