DEATH SPIRAL FOR BLACKBERRY CONTINUES – DEVELOPER AND CARRIER FLIGHT

DEATH SPIRAL FOR BLACKBERRY CONTINUES – DEVELOPER AND CARRIER FLIGHT

Matt HealeyThursday,7 March 2013

The Snap:

A few weeks ago BlackBerry released the much anticipated BB10. The phone was delayed several times before its released. While there have been several positive reviews of the phone, I suspect that it is a case of too little too late.

The Download:

A few days ago Marissa Meyer announced that Yahoo! would no longer support its app for the BB platform. Yahoo! is in trouble. They do not have the resources to be able to support development on multiple platforms. They have to cut something and they have decided to cut the BB app along with several other products. I think this is telling because clearly they feel that this app will not generate any additional revenue and is not worth the continued costs of development. This comes on the heels of analysts’ reducing estimates for sales off the new BB10. Additionally, Sprint has announced it will not sell the Z10, opting instead to wait for the Q10. None of this is good news for BB.

I have not played with the new BB, so I can not offer any thoughts on the quality of the device. For all I know it could be the greatest phone ever produced. I doubt it, but it could be. The problem is that too much damage has been done to the BB brand and no one wants to be seen with a BB. Consumers are choosing Samsung and Apple. As corporations have embraced bring your own device and choose your own device, the chokehold that BB had on the enterprise is loosening. Samsung is taking advantage of that and is directly targeting enterprise customers. What is now happening is the beginning of the death spiral. Consumers are abandoning the platform so carriers do not want to invest in the costs to carry the device, and developers are not developing for it. This makes the platform less attractive for consumers. If BB had the cash position that Microsoft does, they could ride this out by paying developers for apps, and subsidizing the phone. But they are not, so I suspect this is the beginning of the end for BB. If you are a speculator, I would load up on the short side of BB.

Hat Tips:

Yahoo drops BB, Sales lower, Sprint will not carry the BB10, Image Credit: Flickr

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  1. […] imported a lot of contacts into Skype, including their phone numbers. Then when I upgraded from the soon to be dead Blackberry to a Samsung S3, I linked all of the contacts together so that I had a single entry for each […]

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