How BlackBerry (Research In Motion) fell from grace was just Money Sense
Research in Motion got very arrogant. After all, the company had most companies in Canada using the Black Berry phones given how good they were. They forgot that a Berry used to be a fruit.
Black Berry had a huge following globally among teens for its messaging and had corporations swearing by it.
Their fall was unexpected. Canada had just watched Nortel fall like bricks and here was RIMM (now BBM) and we were all dedicated to retaining one of our companies because we are so damn proud of our own.
Till that day. Apple came out with the iPhone. This was certainly gonna take market share away from RIMM but they were too full of themselves.
Our family has 5 mobile phones on my account. So this one time, the BB Torch is not working for our 12 year old who loved it beyond heaven as she had ditched the Flip Berry. The phone died on her while it was on warranty. Rogers Wireless sent it to RIMM (BBM) to fix it. On warranty, it was returned as “we have no idea, we cannot fix it”. Say what? The bloody phone was still on warranty for crying out loud! I wrote to them and asked them to give my kid a new phone for free. They told me they would not do it. So I told them “I look forward to your stock sinking”. At that time I was holding RIMM at $45 per share but had been holding it from $125. I dumped everything and then shorted it.
Rogers Wireless is rather smart. They called us in and gave us a phone for free. It was a Microsoft phone. I proceeded to move everyone onto Android because there was no way in hell I was gonna pay for any phone that was Black Berry.
Blackberry with their ignorance did not see that iPhone was gonna take away most of their customers. Do you know how many kids love iPhones?
Then iPhone also got greedy and arrogant. Their phones break so easily when they fall on the floor and the peripherals are not compatible with other phone makers. So now iPhone is facing stiff competition from all the Android phones which you can drop on cement many times and do not stop functioning.
Right now there is only one person on the family plan of 5 phones who uses an iPhone. The rest of us graduated but Apple still has many kids who love it and SIRI. Please do not lose them. The smart phone industry has become so competitive that if you do not fix the phone on warranty, we will go somewhere else.
Last time I looked, BBM was dying and struggling to make a presence but will likely be sold in bits and pieces for patents. iPhone has a chance to stay strong but for crying out loud, be compatible.
DISCLOSURE – I am shorting Apple! Might live to regret shorting it though. But I do options though.
Martha Leah Nangalama
No financial investing background but technology is now “Just watch what the kids use”.