The BlackBerry crisis is a result of the former smartphone king failing to move with the times. Here’s what the company needs to do to save itself.
Up until a few months ago, I had faith in John Chen. The CEO of (formerly) one the largest smartphone manufactures in the world saw where his company had failed, and arrived prepared to give it another go. Under Chen, we’ve seen a move to Android, the retention of BlackBerry’s hardware keyboard, and a new focus on security. Is it enough to end the BlackBerry crisis?
The short answer, I believe, is no. What greatly eroded my confidence in Chen, who up until now has – in greater strides – made reassuring moves to steady his company, was the company’s decision to gamble everything over the BlackBerry Priv.
Read: BlackBerry Priv Review: Crossing the Rubicon
Let’s revisit my review for a moment; I enjoyed a review period with the BlackBerry Priv earlier this year. It’s a good phone, and a great trajectory for BlackBerry to follow as it moves into the Android world. However, as I surmised in my final piece, the Priv places BlackBerry with one foot before the Rubicon that committed Caesar to conquering Rome, and one foot after.
One could complain that the Priv’s camera could be better. One could further argue that two keyboards are redundant, and the slide-out creak the Priv emits after a while as off-putting. But frankly, nothing detracts from the Priv as much as its positioning in the market – and BlackBerry knows this.
The Priv’s branding campaign positioned it as the ‘most secure’ Android device on the market, with a premium audience and mountainous price tag, and therein lies BlackBerry’s mistake. Those who are able to afford the Priv owe BlackBerry nothing, and are likely enjoying the current iPhone or Galaxy line in any case.
BlackBerry have, up until now, failed to realize that the Priv (or a less expensive version to produce) could have disrupted the market in many ways had it been priced more effectively. Even Chen, who has up until now been bullish about the device, quietly quipped that “œthe fact that we came out with a high-end phone was probably not as wise as it should have been.”
Read: BlackBerry set to launch two new Android phones
There’s wisdom in admitting a bad decision – it happens often in business. But this is one occasion where BlackBerry’s New Hope might meet the dark ending of Revenge of the Sith.
To resolve the BlackBerry crisis – and ensure there is light at the end of the day for the beleaguered Canadian company – there are three critical things BlackBerry need to do with all haste to bring itself back on the market.
In the South African context, people still swear by BlackBerry, even if BIS outages, hardware failures and after-sales support drives them up the wall. That’s because the company’s former flagships continue to sell for their emphasis on communication and not security.
The first thing need to do to avoid the BlackBerry crisis is re-invigorate their branding not only around security, but communication. The Priv’s DTEK features are novel add-ons, but, in frankness, it solves a problem no-one wants to admit they care about. Communication, on the other hand, remains the central aspect that drives many people to purchase a phone in the first place. It appeals to a fear of disconnection.
The Priv brought some excellent ideas from BB10 to the Android table. Sure, they may need some refinement in the long term, but they’re there.
How could BlackBerry market communication once again? Firstly, be as bullish with the Hub as the company was about DTEK; remove stock Android notifications and introduce a slide-down Hub in its place. Secondly, market the default BlackBerry soft keyboard; it’s brilliant. And thirdly, advertise that damn front-firing speaker. It’s attractive and sounds great.
Read: BlackBerry on target to meet John Chen‘s sales goals, but not revenue
Next, let us move on to hardware. The first move I’d suggest has already been done, locally; lower the Priv’s price. Ideally, I’d like to see this handset in the bracket of R9,000-R10,000 ZAR if feasible. At that bracket, it undercuts the flagships it tries to compete with, and offers value-for-money few other Android flagships are offering. Were the Priv able to hover just above the likes of the iPhone SE, you might even see some Apple converts smelling value-for-money. With a launch price of R16,000 ZAR, the Priv likely has put off many of the business moguls it was trying to appeal to.
Next up, get those two Android phones out as quickly as possible. John Chen has already teased that we can expect two more devices by the end of the year, but to my mind, BlackBerry has no time to waste.
Since we know very little about either phone – save that one is code-named ‘Vienna’ and has a physical keyboard, allow me to offer two ideas which I think could work in an international – and local – context.
First off, let’s talk low-end. If BlackBerry actively decides to produce handsets solely above the R7,000 ZAR mark, it’ll be a massive slap in the face to a myriad of South Africans who keep the company’s sales afloat. BlackBerry would be well positioned to market what we’ll call the Vienna at around the R3000-R4000 ZAR mark. The Vienna should, ideally, retain a physical keyboard and bear a lesser screen size. Keep Android, retain the Hub, and make sure the camera offering is as reasonable as the Xiaomi Mi 4. Don’t bother with security offerings, or even the remote possibility of a software keyboard.
Now, let’s talk mid-range. We need a handset to supplement this strategy that sits in-between what the Priv aspires to be and what is realistically possible.
Read: BlackBerry Priv could be the company‘s last phone
For this device, forget about a physical keyboard entirely. Start with styling it as the Priv’s front panel is, without a curved display. Next, retain the front-firing speaker, and further keep the camera near-par with the Priv. Lastly, on this model, retain all the BlackBerry additions to Android save for DTEK. Position this model upwards of R6,000 ZAR and below R9,000 ZAR, and we’re good to go.
Now, let’s take a step back and see what we’ve cooked up. We now have a BlackBerry range with three key offerings; one low, one mid, and one in a competitive premium bracket. On the lowest end, you have a basic offering that will state the faithful with a physical keyboard and a basic version of Android that gets the job done. In the middle, you have a capable handset with some noteworthy additions that can steal the appeal from the LG G4 of old and Samsung’s A series.
Lastly, we still have the Priv, which now offers a no compromise BlackBerry handset with all the software BlackBerry is so proud of. With all three devices marketing their emphasis on communication, as outlined above, we can see a broad appeal with the niche market for security directed squarely at BlackBerry’s upper leagues.
Through this approach, you have the potential to save your hardware and appeal to the market that got to the heights of success in the first place. There’s still hope.
To avert the BlackBerry crisis, Chen needs to be on-the-ball, and if I can say this with any hint of humility, if BlackBerry don’t follow the model I’ve prescribed here, I fear for the future of the firm unless – by some miracle – it holds an ace up its sleeve that I cannot predict.
My perspective here comes as a technology writer and reviewer, and having spent time with the company’s latest products. That being said, I’d love to hear your comments on what you think the company should do to avoid the BlackBerry crisis, and if you think what I suggest is feasible.
Let us know your thoughts in the comments below!
Follow Bryan Smith on Twitter: @bryansmithSA
