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August 1, 2016

how RIM's ceo mike lazaridis underestimation of the iPhone led to its fall

: the rise and fall of blackberry : its biggest mistake

 

Among one of the many reasons of Blackberry’s fall was its inability to understand and underestimate the power and the brilliance of iPhone. Mike Lazaridis did not give enough thought to Apples new iPhone for some months. Blackberry did not feel that it would actually be a threat to RIM's core business.According to RIM,  iPhone’s basic problem where RIM had a huge advantage was the  iPhone's rapid battery drain and what the smartphone manufacturer  felt was iPhone's lousy digital keyboard . RIM believed that iPhone would gain traction among the non enterprise customers who cared more about youtube and other online social escapades as opposed to RIM’s core enterprise customers who cared more about security and efficiency .
 Another fact that made RIM complacent was its fast growing business in a world that was hungry for blackberry. In the year  when steve jobs launched iPhone in 2007,blackberry was adding more than a million blackberry’s per quarter . By that time RIM’s new consumer phone “ Blackberry Pearl was a spectacular hit, with 59% increase in sales to 6.4 million handsets in fiscal 2007


What RIM had underestimated was the sheer tenacity and technical prowess about the iPhone. In the book "Loosing the signal " which  chronicles the demise of blackberry, Jacquie McNish writes that RIM’s CEO Lazaridis  was stunned what he saw when he began to break and disassemble the iPhone on his table. What he founded astounded him .The iPhone was no ordinary smartphone .The iPhone  was actually an apple mobile OS which used 7000 megabytes of memory , which was more than 22 times the power of Blackberry .The iphone had a full browser that travelled everywhere on the web, With carriers AT & T backing , Apple was changing the direction of smartphone industry, as RIM was caught napping..