A few years ago a Blackberry was the must have phone. It was no longer cool to simply ask someone for their phone number – you had to know their bbm. The addictiveness of the Blackberry even saw it popularly referred to as the Crackberry. Then all that changed. One dark day the iPhone took off and Blackberry was left well and truly in its shadow.
Recently the company announced that it was cutting 4,500 jobs. That’s almost half of their staff. The company made huge losses for the second time this year, losing £600 million in three months. The blow comes after Blackberry released the new Z10 smartphone earlier this year, which it hoped to rival iPhone and Android phones. However the phone never took off in the extremely competitive market, receiving poor sales and further jeopardising the company.
The addictiveness of the Blackberry even saw it popularly referred to as the Crackberry. Then all that changed.
In one year there has shown to be a 50% fall in the sales of Blackberry phones. In an attempt to save the Canadian company an offer was made by Fairfax Financial of £3 billion. This has seen a huge fall in the company’s value, as just five years ago it was worth £52 billion.
The magnitude of Blackberry’s fall was seen when they sold only 6.8 million smartphones in 3 months. This is compared to the ever rising Apple whom sold over 9 million iPhone 5s in its first weekend.
New smart phones are constantly being released into a market dominated by brands such as Apple and Android, holding 13% and 80% share of the global market respectively. Blackberry now holds a mere 2.9% share. With sales falling at such a dramatic rate, will Blackberry be able to recover?