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BlackBerry Limited
BlackBerry Limited
from Wikipedia

BlackBerry Limited, formerly Research In Motion (RIM), is a Canadian software company specializing in secure communications and the Internet of Things (IoT). Founded in 1984, it developed the BlackBerry brand of two-way pagers, smartphones, and tablets. The company later transitioned to providing software and services and holds critical software application patents.

Key Information

Initially leading the emerging smartphone market in the late 2000s, the company struggled to gain a lasting presence against the iPhone and Android phones. BlackBerry led the smartphone market in many countries, particularly the United States until 2010, with the announcement of the iPhone 4, and in Indonesia throughout the early 2010s. The company withered against the rapid rise of both Apple and Google. After the launch of BlackBerry 10, it transitioned to a cybersecurity enterprise software and services company under CEO John S. Chen.[3] In 2018, the last BlackBerry smartphone, the BlackBerry Key2 LE, was released. In 2022, BlackBerry discontinued support for BlackBerry 10, ending their presence in the smartphone market.

BlackBerry's software products are used by various businesses, car manufacturers, and government agencies to prevent hacking and ransomware attacks. They include BlackBerry Enterprise Server (BlackBerry Unified Endpoint Manager) and a Unified Endpoint Management (UEM) platform.

History

[edit]

1984–2001: early years and growth

[edit]
Logo as Research In Motion, used prior to January 30, 2013

Research In Motion Limited was founded in March 1984 by Mike Lazaridis and Douglas Fregin.[4] At the time, Lazaridis was an engineering student at the University of Waterloo while Fregin was an engineering student at the University of Windsor.[5] In 1988, RIM became the first wireless data technology developer in North America and the first company outside the Nordic countries to develop connectivity products for Mobitex wireless packet-switched data communications networks. Mobitex's wireless data transport also became RIM's first wireless data service that powered the Blackberry and Palm devices until it was phased out.[6] In 1990, RIM introduced the DigiSync Film KeyKode Reader.[7] In 1991, it introduced the first Mobitex protocol converter. In 1992, it introduced the first Mobitex point-of-sale solution, a protocol converter box that interfaced with existing point-of-sale terminal equipment to enable wireless communication. In 1993, it introduced the RIMGate, the first general-purpose Mobitex X.25 gateway.[citation needed] In the same year, it launched Ericsson Mobidem AT and Intel wireless modems containing RIM modem firmware. In 1994, it introduced the first Mobitex mobile point-of-sale terminal. In the same year, it received the Emmy Award for Technical Innovation and the KPMG High Technology Award. In 1995, it introduced Freedom, the first Type II PCMCIA radio modem for Mobitex. [citation needed]

In 1995, RIM was financed by Canadian institutional and venture capital investors through a private placement in the privately held company. Working Ventures Canadian Fund Inc. led the first venture round[8] with a C$5,000,000 investment with the proceeds being used to complete the development of RIM's two-way paging system hardware and software. A total of C$30,000,000 in pre-IPO financing was raised by the company prior to its initial public offering on the Toronto Stock Exchange in January 1998 under the symbol RIM.[9]

In 1996, RIM introduced the Interactive Pager, the first two-way messaging pager, and the RIM 900 OEM radio modem. The company developed the pager prototype with the support of Intel Corporation.[10] The company worked with RAM Mobile Data and Ericsson to turn the Ericsson-developed Mobitex wireless data network into a two-way paging and wireless e-mail network. Pivotal in this development was the release of the Inter@ctive Pager 950. In August 1997, a prototype was presented to BellSouth executives, who were impressed with the device and agreed to a $70-million deal that involved the supply of 100,000 devices.[11] The pager started shipping in August 1998. About the size of a bar of soap, this device competed against the Skytel two-way paging network developed by Motorola. [citation needed]

In 1999, RIM introduced the BlackBerry 850 pager. This was also the first device to use the Blackberry OS.[12] Named after its keyboard's similarity to the druplets of the blackberry fruit,[13] the device could receive push email from a Microsoft Exchange Server using its complementary server software, BlackBerry Enterprise Server (BES). Its introduction set the stage for the company's future enterprise-oriented products, such as the BlackBerry 957 in April 2000, the first BlackBerry smartphone. The BlackBerry OS platform and BES continued to increase in functionality, while the incorporation of encryption and S/MIME support helped BlackBerry devices gain increased usage by governments and businesses.[14][15] During fiscal 1999-2001, RIM's assets grew eight-fold due to massive capacity expansion. [citation needed]

2001–2011: global expansion and competition

[edit]

RIM soon began to introduce BlackBerry devices for the consumer market as well, beginning with the BlackBerry Pearl 8100—the first BlackBerry phone to include multimedia features such as a camera. The Pearl series was highly successful, as was the subsequent Curve 8300 and Bold 9000 series. Extensive carrier partnerships fueled the rapid expansion of BlackBerry users globally in both enterprise and consumer markets. [citation needed]

Despite the arrival of the first Apple iPhone in 2007, BlackBerry sustained market share growth well into 2011. The introduction of Apple's iPhone on the AT&T network in the fall of 2007 in the United States prompted RIM to produce its first touchscreen smartphone for the competing network in 2008—the BlackBerry Storm. It sold well but suffered from mixed to poor reviews and poor customer satisfaction.[15][16] The iPhone initially lagged behind BlackBerry in both shipments and active users, due to RIM's head start and larger carrier distribution network. In the United States, the BlackBerry user base peaked at approximately 21 million users in the fall of 2010.[17][18][19] That quarter, the company's global subscriber base stood at 36 million users.[20] As the iPhone and Google Android accelerated growth in the United States, the BlackBerry began to turn to other smartphone platforms. Nonetheless, the BlackBerry line as a whole continued to enjoy success, spurred on by strong international growth. As of December 1, 2012, the company had 79 million BlackBerry users globally[21] with only 9 million remaining in the United States.[22]

Even as the company continued to grow worldwide, investors and media became increasingly alarmed about the company's ability to compete with devices from rival mobile operating systems iOS and Android. CNN cited BlackBerry as one of six endangered US-Canadian brands. Analysts were also worried about the company's management structure.[23][24]

Following numerous attempts to upgrade its existing Java platform, the company acquired QNX Software Systems to upgrade the BlackBerry platform, centered around its recently acquired real-time operating system QNX.[25] In March 2011, then-co-CEO Jim Balsillie suggested during a conference call that the "launch of some powerful new BlackBerrys" (eventually released as BlackBerry 10) would be in early 2012. However, analysts were "worried that promoting the mysterious, supposedly game-changing devices too early might hurt sales of existing BlackBerrys" (similar to the Osborne effect). The initial launch date was seen in retrospect as too ambitious and hurt the company's credibility at a time when its existing aging products steadily lost market share.[26]

On September 27, 2010, RIM announced the BlackBerry PlayBook tablet, the first product running on the new QNX platform known as BlackBerry Tablet OS. The BlackBerry PlayBook was officially released to U.S. and Canadian consumers on April 19, 2011. It was criticized for being rushed to market in an incomplete state, and sold poorly. Following the shipments of 900,000 tablets during its first three quarters on market, slow sales and inventory pileups prompted the company to reduce prices and write down the inventory value by $485 million.[27]

Primary competition

[edit]

BlackBerry's primary competitors were smartphones running Android OS, and the Apple iPhone. For a number of years, the BlackBerry was the leading smartphone in many markets, particularly the United States. The arrival of the iPhone and later Google's Android platform caused a slowdown in BlackBerry growth and a decline in sales in some markets, most notably the United States, leading to negative media and analyst sentiment over the company's ability to continue independently.[28]

When Apple's iPhone was introduced in 2007, it generated substantial media attention, with numerous media outlets calling it a "BlackBerry killer".[29][30] While BlackBerry sales continued to grow, the newer iPhone grew at a faster rate. The 87% drop in BlackBerry's stock price between 2010 and 2013 was primarily attributed to the performance of the iPhone handset.[31]

The first three iPhone models generally lagged behind the BlackBerry in sales, as RIM had major advantages in carrier and enterprise support; however, Apple continued gaining market share. In October 2008, Apple briefly passed RIM in quarterly sales when they announced they had sold 6.9 million iPhones to the 6.1 million sold by RIM, comparing partially overlapping quarters between the companies.[32] Though Apple's iPhone sales declined to 4.3 million in the subsequent quarter[33] and RIM's increased to 7.8 million, for some investors this was a sign of weakness.[34] The iPhone began to sell more phones quarterly than the BlackBerry in 2010, brought on by the release of the iPhone 4.[35][36]

In the United States, the BlackBerry hit its peak in September 2010, with almost 22 million users, or 37% of the 58.7 million American smartphones.[37] BlackBerry then began to decline in use in the United States, with Apple's installed base in the United States finally passing it in April 2011.[38] Sales of the iPhone continued to accelerate, as did the smartphone market, while the BlackBerry began to lose users continuously in the United States. By February 2016, only 1.59 million (0.8%) of the 198.9 million smartphone users in the United States were running BlackBerry compared to 87.32 million (43.9%) on an iPhone.[39]

Google's Android mobile operating system, running on hardware by a range of manufacturers including Sony, Motorola, HTC, Samsung, LG and many others ramped up the competition for BlackBerry. In January 2010, barely 3 million (7.1%) of the 42.7 million Smartphones in use at the time in the United States were running Android, compared to 18 million BlackBerry devices (43%).[40] Within a single year Android had passed the installed base of the BlackBerry in the United States.[41] By February 2016, only 1.59 million (0.8%) of the 198.9 million smartphone users in the United States were running BlackBerry compared to 104.82 million (52.7%) running Android.[39]

While RIM's secure encrypted network was attractive to corporate customers, their handsets were sometimes considered less attractive to consumers than iPhone and Android smartphones. Developers often developed consumer applications for those platforms and not the BlackBerry.[42][43] During 2010s, even enterprise customers had begun to adopt BYOD policies due to employee feedback. The company also faced criticism that its hardware and operating system were outdated and unappealing compared to the competition, as well as that the browsing capabilities were poorer.[44]

2011–2015: layoffs and strategic changes

[edit]

Slowing growth prompted the company to undertake a lay-off of 2,000 employees in the summer of 2011.[45] In September 2011, the company's BlackBerry Internet Service suffered a massive outage, impacting millions of customers for several days. The outage embarrassingly occurred as Apple prepared to launch the iPhone 4S, causing fears of mass defections from the platform.[46]

Shortly afterwards, in October 2011, RIM unveiled BBX, a new platform for future BlackBerry smartphones that would be based on the same QNX-based platform as the PlayBook. However, due to an accusation of trademark infringement regarding the name BBX, the platform was renamed BlackBerry 10.[47][48] The task proved daunting, with the company delaying the launch in December 2011 to some time in 2012.[49] On January 22, 2012, Mike Lazaridis and Jim Balsillie resigned as the CEOs of the company, handing the reins over to executive Thorsten Heins.[50] On March 29, 2012, the company reported its first net loss in years.[51] Heins set about the task of restructuring the company, including announcing plans to lay off 5,000 employees, replacing numerous executives, and delaying BlackBerry 10 a second time into January 2013.[52]

BlackBerry 10

[edit]

After much criticism and numerous delays, RIM officially launched BlackBerry 10 and two new smartphones based on the platform, the BlackBerry Z10 and Q10, on January 30, 2013.[15][53][54] The BlackBerry Z10, the first BlackBerry smartphone running BlackBerry 10, debuted worldwide in January 2013, going on sale immediately in the U.K. with other countries following. A marked departure from previous BlackBerry phones, the Z10 featured a fully touch-based design, a dual-core processor, and a high-definition display. BlackBerry 10 had 70,000 applications available at launch, which the company expected would rise to 100,000 by the time the device made its debut in the United States. In support of the launch, the company aired its first Super Bowl television advertisement in the U.S. and Canada during Super Bowl XLVII.[55] In discussing the decision to create a proprietary operating system instead of adopting an off-the-shelf platform such as Android, Heins noted, "If you look at other suppliers' ability to differentiate, there's very little wiggle room. We looked at it seriously—but if you understand what the promise of BlackBerry is to its user base it's all about getting stuff done. Games, media, we have to be good at it but we have to support those guys who are ahead of the game. Very little time to consume and enjoy content—if you stay true to that purpose you have to build on that basis. And if we want to serve that segment we can't do it on a me-too approach."[56] Chief Operating Officer Kristian Tear remarked "We want to regain our position as the number one in the world", while Chief Marketing Officer Frank Boulben proclaimed "It could be the greatest comeback in tech history. The carriers are behind us. They don't want a duopoly" (referring to Apple and Samsung).[44]

During the BlackBerry 10 launch event, the company also announced that it would change its public brand from Research In Motion to BlackBerry.[57][53] The name change was made to "put the BlackBerry brand at the centre" of the company's diverse brands, and because customers in some markets "already know the company as BlackBerry".[15] A shareholder vote on an official name change to BlackBerry Limited was held at its next annual general meeting, after its ticker symbols on the TSX and NASDAQ already were changed to BB and BBRY respectively on February 4, 2013.[58][59]

On August 12, 2013, the company announced that it was open to being purchased.[60]

Prem Watsa/Fairfax Deal

[edit]

Canada Pension Plan Investment Board's CEO Mark Wiseman stated that he would consider investing in BlackBerry if the company became private.[61] Also on August 12, 2013, foremost shareholder Prem Watsa resigned from BlackBerry's board.[62]

On September 20, 2013, the company announced it would lay off 4,500 staff and take a CAD$1 billion operating loss.[63] Three days later, the company announced that it had signed a letter of intent to be acquired by a consortium led by Prem Watsa-owned Fairfax Financial Holdings for a $9 per share deal. This deal was also confirmed by Watsa.[64]

On September 29, 2013, the company began operating a direct sales model for customers in the United States, where unlocked Q10 and Z10 smartphones were sold directly from the BlackBerry website.[65] On October 15, 2013, the company published an open letter in 30 publications in nine countries to reassure customers that BlackBerry would continue to operate.[66] Anthony Michael Sabino, St. John's University business professor, stated in the Washington Post: "This is BlackBerry's last-ditch attempt to simply survive in the face of crushing competition in a market it essentially invented."[67]

John Chen joins BlackBerry

[edit]

On November 4, 2013, the Fairfax Prem Watsa deal was scrapped in favor of a US$1 billion cash injection which, according to one analyst, represented the level of confidence BlackBerry's largest shareholder had in the company.[68] At the same time, BlackBerry installed John Chen as CEO to replace the laid-off Heins.[69] According to the Globe and Mail, BlackBerry's hope was that Chen, with his reputation as a turnaround artist, could save the company.[70]

"We have begun moving the company to embrace a multi-platform, BYOD world by adopting a new mobility management platform and a new device strategy," Chen explained in an open letter published shortly after his appointment. "I believe in the value of this brand. With the right team and the right strategy in place, I am confident that we will rebuild BlackBerry for the benefit of all our constituencies."[71]

In April 2014, Chen spoke of his turnaround strategy in an interview with Reuters,[72] explaining that he intended to invest in or partner with other companies in regulated industries such as healthcare, financial, and legal services. He later clarified that BlackBerry's device division remained part of his strategy and that his company was also looking to invest in "emerging solutions such as machine to machine technologies that will help power the backbone of the Internet of Things."[73] He would later expand on this idea at a BlackBerry Security Summit in July 2014.[74]

In May 2014, the low-cost BlackBerry Z3 was introduced in the Indonesian market, where the brand had been particularly popular. The budget handset was produced in partnership with Taiwanese manufacturer Foxconn Technology Group, which handled the design and distribution of the product. A New York Times analysis stated that the model was an attempt by Chen to generate revenue while he tried "to shift the organization's focus to services and software." As part of the localization effort for the promotion of the Z3, the handset's back panel was engraved with the word "Jakarta", but skepticism still emerged, as the handset was still more than twice as expensive as Android models in Indonesia at the time of release.[75]

2015–present: software transition

[edit]

In the first quarter of the 2015 fiscal year, Chen stated: "This is, of course, the very beginning of our task and we hope that we will be able to report better results going forward… We feel pretty good about where we are." Quartz reported that stock was up by 30 percent, compared to the same period in the previous year.[31]

In September 2015, Chen unveiled the BlackBerry Priv, a keyboard-slider smartphone utilizing the Android operating system with BlackBerry-developed software enhancements, including a secure bootloader, full-disk encryption, integrity protection, and the BlackBerry HUB.[76]

In 2020, BlackBerry signed a new licensing agreement for smartphones with the US-based startup company, OnwardMobility.[77] The company never released a device before shutting down in 2022.[78]

As of June 2021, Cybersecurity ($107 million) and IoT ($43 million) revenue accounted for a combined 86% of Q1 2022 earnings ($174 million). Chen reiterated: "Now, we are pivoting the organization more heavily toward the market by creating two business units, Cybersecurity and IoT… we will provide revenue and gross margin by business unit as well as other selected metrics."[79]

On January 4, 2022, BlackBerry decommissioned the infrastructure and operating system used by their non-Android phones.[80]

In October 2023, the company announced that it would spin off its IoT business unit and hold an initial public offering for it in the next year.[81][82]

Acquisitions

[edit]

During this time, BlackBerry also expanded its software and services offerings with several acquisitions. These included file security firm WatchDox,[83] crisis communications leader AtHoc,[84] and rival EMM vendor Good Technology.[85] The products offered by these firms were gradually re-branded and integrated into BlackBerry's own portfolio. BlackBerry also announced the release of the Good Secure EMM Suites, consolidating WatchDox and Good Technology's products into several tiered offerings alongside its existing software.[86]

Hardware licensing partnerships

[edit]

BlackBerry announced the DTeK50, a mid-range Android smartphone, on July 26, 2016.[87] Unlike the Priv, the DTek50 was a re-branded version of an existing smartphone, the Alcatel Idol 4 as manufactured by TCL Corporation, one of the company's hardware partners.[88] It was to be the second-last phone ever developed in-house at BlackBerry, followed by the DTek60 in October 2016 – on September 28, 2016, BlackBerry announced that it would cease in-house hardware development to focus on software, delegating development, design, and manufacturing of its devices to third-party partners.[89]

The first of these partners was BB Merah Putih, a joint venture in Indonesia. Chen stated that the company was "no longer just about the smartphone, but the smart in the phone".[90][91] On December 15, 2016, BlackBerry announced that it had reached a long-term deal with TCL to continue producing BlackBerry-branded smartphones for sale outside of Bangladesh, India, Indonesia, Nepal, and Sri Lanka.[92] This partnership was followed by an agreement with Optiemus Infracom on February 6, 2017, to produce devices throughout India and neighbouring markets including Sri Lanka, Nepal, and Bangladesh.[93]

Since the partnerships were announced, TCL released the BlackBerry KeyOne[94] and BB Merah Putih released the BlackBerry Aurora.[95]

Cybersecurity consulting

[edit]

In February 2016, BlackBerry acquired UK-based cybersecurity firm Encription,[96] with the intention of branching out into the security consulting business.

BlackBerry Secure

[edit]

On December 8, 2016, BlackBerry announced the release of BlackBerry Secure. Billed as a "comprehensive mobile security platform for the Enterprise of Things", BlackBerry Secure deepened the integration between BlackBerry's acquisitions and its core portfolio. According to Forbes, it brings all of BlackBerry's products "under a single umbrella".[97]

Also in February 2017, analyst firm 451 Research released a report on BlackBerry's improved financial position and product focus.[98] The report identified BlackBerry's position in the Internet of Things and its device licensing strategy as strengths.

John Chen resigns from BlackBerry

[edit]

On October 30, 2023 John S. Chen announced his resignation as CEO through an employee letter posted to the Blackberry Limited blog page stating he will cease his role on November 4, 2023.[99]

Financials

[edit]

Until 2013, the number of active BlackBerry users increased over time. In the fourth quarter of fiscal year ended March 3, 2012, RIM shipped 11.1 million BlackBerry smartphones, down 21 percent from the previous quarter and it was the first decline in the quarter covering Christmas since 2006. For its fourth quarter, RIM announced a net loss of US$125 million (the last loss before this occurred in the fourth quarter of the fiscal year 2005).[100] RIM's loss of market share accelerated in 2011, due to the rapidly growing sales of Samsung and HTC Android handsets; RIM's annual market share in the U.S. dropped to just 3 percent, from 9 percent.[101]

In the quarter ended June 28, 2012, RIM announced that the number of BlackBerry subscribers had reached 78 million globally.[102] Furthermore, RIM reported its first quarter revenue for the 2013 fiscal year, showing that the company incurred a GAAP net loss of US$518 million for the quarter, and announced a plan to implement a US$1 billion cost-saving initiative. The company also announced the delay of the new BlackBerry 10 OS until the first quarter of 2013.[103]

After the release of the Apple iPhone 5 in September 2012, RIM CEO Thorsten Heins announced that the number of global users was up to 80 million, which sparked a 7% jump in shares.[104] On December 2, 2012, the company reported a decline in the global subscriber base of BlackBerry to 79 million, after peaking at an all-time high of 80 million the previous quarter.[34] Later that same month, media reports confirmed that BlackBerry lost US$1.049 billion during the second fiscal quarter of 2013. In the wake of the loss, Heins stated: "We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure."[105]

Between 2010 and 2013, the stock price of the company dropped by 87 percent due to the widespread popularity of the iPhone. Goldman Sachs estimated that, in June 2014, BlackBerry accounted for 1 percent share of smartphone sales, compared to a peak of around 20 percent in 2009.[31]

With the release of its financial results for the first fiscal quarter of 2015 in June 2014, Chen presented a more stable company that had incurred a lower amount of loss than previous quarters. The New York Times described "a smaller-than-expected quarterly loss." Following the news release, Chen stated that BlackBerry was comfortable with its position, and it is understood that his plan for the company mainly involves businesses and governments, rather than consumers.[106]

Fiscal Year Sales ($ millions) Operating Income ($ millions) Net Income ($ millions) Active BlackBerry Subscribers
1999 47 4.8 6.4
2000 84 10 10
2001 221 (4.6) (6.2)
2002[107]  294   (58)   (28)
2003[107] 307 (64) (149) 534,000
2004[107] 595 78 52 1,069,000
2005[107] 1,350 386 206 2,510,000
2006[107] 2,066 617 375 4,900,000
2007[107] 3,037 807 632 8,000,000
2008[107] 6,009 1,731 1,294 14,000,000
2009[107] 11,065 2,722 1,893 25,000,000
2010[107] 14,953 3,507 2,457 41,000,000
2011[107] 19,907 4,739 3,444 70,000,000
2012[108] 18,423 1,497 1,164 77,000,000
2013[108][109] 11,073 (1,235) (646) 79,000,000
2014[108][109] 6,813 (7,163) (5,873) 69,000,000
2015[108][109] 3,335 (423) (304) 46,000,000
2016 2,160 (223) (208)
2017[110] 1,309 (1,181) (1,206)
2018[111] 932 283 405
2019 904 60 93
2020 1,040 (149) (152)
2021[2] 718 (2) 12

Organizational changes

[edit]

Leadership changes

[edit]

The company was often criticized for its dual CEO structure. Some saw this arrangement as a dysfunctional management structure and believed RIM acted as two companies, slowing the effort to release the new BlackBerry 10 operating system.[112][113] On June 30, 2011, an investor push for the company to split its dual-CEO structure was unexpectedly withdrawn after an agreement was made with RIM.[114]

Stock option scandal settlement

[edit]

In 2007, co-CEO Jim Balsillie was forced to resign as chairman as the company announced a $250 million earnings restatement relating to mistakes in how it granted stock options. Furthermore, an internal review found that hundreds of stock-option grants had been backdated, timed to a low share price to make them more lucrative.[115]

In January 2009, Canadian regulators stated that they were seeking a record penalty of US$80 million from the top two executives, co-CEOs Jim Balsillie and Mike Lazaridis. Furthermore, the Ontario Securities Commission (OSC) pushed for Balsillie to pay the bulk of any penalty and relinquish his seat on RIM's board of directors for a period of time.[116] On February 5, 2009, several executives and directors of Research In Motion agreed to pay the penalties to settle an investigation into the backdating of stock options. The Ontario Securities Commission approved the arrangement in a closed-door meeting. Under the terms of a settlement agreement with the OSC, RIM co-chief executive officers Jim Balsillie and Mike Lazaridis, as well as chief operating officer Dennis Kavelman, jointly paid a total of C$68-million to RIM to reimburse the company for losses from the backdating and for the costs of a long internal investigation. The three were also required to pay C$9-million to the OSC. Balsillie resigned from RIM's board of directors temporarily and remained in his executive role.[117][118] In May 2010, almost immediately after the OSC sanctions expired, Balsillie was reappointed to the board in spite of strong shareholder objections.[119]

Structural and personnel changes

[edit]

Lazardis and Balsillie resigned as co-CEOs in January 2012.[120] After years of tension, Balsille left the company entirely, stepping down from his executive role in March 2012.[121] Following their resignations, they were replaced by a single CEO - former co-COO Thorsten Heins.[122] Heins hired investment banks RBC Capital Markets and JP Morgan to seek out potential buyers interested in RIM, while also redoubling efforts on releasing BlackBerry 10.[44]

Following the assumption of role as CEO, Heins made substantial changes to the company's leadership team. Changes included the departures of Chief Technology Officer David Yach; Chief Operating Officer Jim Rowan;[123] Senior Vice President of Software Alan Brenner;[124] Chief Legal Officer, Karima Bawa;[125] and Chief Information Officer Robin Bienfait.[126]

Following the leadership changes, Heins hired Kristian Tear to assume the role of Chief Operating Officer, Frank Boulben to fill the Chief Marketing Officer role[125] and appointed Dan Dodge, the CEO of QNX, to take over as Chief Technology Officer.[127] On July 28, 2012, Steven E. Zipperstein was appointed as the new Vice President and Chief Legal Officer.[128]

On March 28, 2013, Lazaridis relinquished his position as vice chairman and announced his resignation from the board of directors.[129] Later in the year, Heins was replaced by John S. Chen, who assumed the CEO role in the first week of November. Chen's compensation package mainly consists of BlackBerry shares—a total of 13 million—and he will be entitled to the entire number of shares after he has served the company for five years. Heins received an exit package of $22 million.[130]

Chen has a reputation as a "turnaround" CEO,[131] turning the struggling enterprise software and services organization Sybase into enough of a success to sign a merger with SAP in 2010.[132] Chen was open about his plans for BlackBerry upon joining the company, announcing his intent to move away from hardware manufacturing to focus on enterprise software such as QNX, BlackBerry UEM, and AtHoc.[133][134][135]

Workforce reductions

[edit]

In June 2011, RIM announced its prediction that Q1 2011 revenue would drop for the first time in nine years, and also unveiled plans to reduce its workforce.

In July 2011, the company cut 2,000 jobs, the biggest lay-off in its history and the first major layoff since November 12, 2002, when the company laid off 10% of its workforce (200 employees).[136] The lay-off reduced the workforce by around 11%, from 19,000 employees to 17,000.[137]

On June 28, 2012, the company announced a planned workforce reduction of 5,000 by the end of its fiscal 2013, as part of a $1 billion cost savings initiative.[103]

On July 25, 2013, 250 employees from BlackBerry's research and development department and new product testing were laid off. The layoffs were part of the turnaround efforts.[138]

On September 20, 2013, BlackBerry confirmed that the company will have a massive layoff of 4,500 employees by the end of 2013. This would be approximately 40 percent of the company's workforce.[139]

BlackBerry had at its peak about 20,000 employees. After CEO John Chen joined BlackBerry in 2013 there were additional layoffs in February 2015 to compete with smartphones, at which point the total employees numbered 6,225. On July 21, 2015, BlackBerry announced an additional layoff of an unspecified number of employees,[140] with another 200 laid off in February 2016.[141]

As of February 2022, the company had 3,225 employees.[2]

Mobile OS transition

[edit]

BlackBerry OS

[edit]

The BlackBerry OS was intended to operate under much different, simpler conditions such as low powered devices, narrow network bandwidth, and high-security enterprises. However, the aging platform struggled with emerging trends like mobile web browsing, consumer applications, multimedia and touch screen interfaces. Users experienced performance issues, usability problems and instability.[26]

The company tried to enhance the old platform, but ultimately decided to build a new platform with QNX at its core.[112][7]

BlackBerry Tablet OS (QNX)

[edit]

The BlackBerry PlayBook was the first RIM product whose BlackBerry Tablet OS was built on QNX, launched in April 2011 as an alternative to the Apple iPad. However, it was criticized for having incomplete software and a poor app selection. It fared poorly until prices were substantially reduced, like most other tablet computers released that year. The BlackBerry Tablet OS received a major update in February 2012, as well as numerous minor updates.

BlackBerry 10 (QNX)

[edit]

BlackBerry 10, a substantially updated version of BlackBerry Tablet OS intended for the next generation BlackBerry smartphones, was originally planned for release in early 2012. The company delayed the product several times, remembering the criticism faced by the BlackBerry Playbook launch and citing the need for it to be perfect in order to stand a chance in the market. The most recent model with this OS was the BlackBerry Leap.

Android

[edit]

In September 2015, BlackBerry announced the Priv, a handset running Android 5.1.1 "Lollipop". It is the first phone by the company not to run an in-house built operating system. The version of Android running on the Priv is very similar to the standard version developed by Google, with some changes to improve productivity and security. BlackBerry implemented some of the features of BlackBerry 10 within Android, such as BlackBerry Hub, BlackBerry Virtual Keyboard, BlackBerry Calendar, and BlackBerry Contacts.[142]

On July 26, 2016, a mid-range model with only an on-screen keyboard was introduced, the slim BlackBerry DTEK50, powered by the then-latest version of Android (6.0, Marshmallow) and featuring a 5.2-inch full high-definition display. BlackBerry chief security officer David Kleidermacher stressed data security during the launch, indicating that this model included built-in malware protection and encryption of all user information. By then, the BlackBerry Classic, which used the BlackBerry 10 OS, had been discontinued.[143][144]

In July 2016, industry observers expected the company to announce two additional smartphones over the subsequent 12 months, presumably also with the Android OS.[145] However, BlackBerry COO Marty Beard told Bloomberg that "The company's never said that we would not build another BB10 device."[146]

In 2018, the last Blackberry smartphone, the BlackBerry Key2 LE, was released. In 2022, BlackBerry discontinued support for BlackBerry 10, effectively ending their presence in the smartphone market.[147]

Acquisitions

[edit]

Through the years, particularly as the company moved towards cybersecurity, BlackBerry has made numerous acquisitions of third-party companies and technology.

Slipstream Data Inc.

[edit]

Slipstream Data Inc was a network optimization/data compression/network acceleration software company. BlackBerry acquired the company as a wholly owned subsidiary on July 11, 2006. The company continues to operate out of Waterloo.

Certicom

[edit]

Certicom Corp. is a cryptography company founded in 1985 by Gordon Agnew,[148] Ron Mullin and Scott Vanstone.

The Certicom intellectual property portfolio includes over 350 patents and patents pending worldwide that cover key aspects of elliptic-curve cryptography (ECC).[149]

The National Security Agency (NSA) has licensed 26 of Certicom's ECC patents as a way of clearing the way for the implementation of elliptic curves to protect U.S. and allied government information.[150]

On January 23, 2009, VeriSign entered into an agreement to acquire Certicom.[151] Research In Motion put in a counter-offer, which was deemed superior.[152] VeriSign did not match this offer,[153] and so Certicom announced an agreement to be acquired by RIM.[154] Upon the completion of this transaction, Certicom became a wholly owned subsidiary of RIM, and was de-listed from the Toronto Stock Exchange on March 25, 2009.

Dash Navigation

[edit]

In June 2009, RIM announced they would acquire Dash Navigation, makers of the Dash Express.[155]

Torch Mobile

[edit]

In August 2009, RIM acquired Torch Mobile, developer of Iris Browser, enabling the inclusion of a WebKit-based browser on their BlackBerry devices, which became the web browser in subsequent Java-based operating systems (BlackBerry 6, BlackBerry 7) and operating systems (QNX based BlackBerry Tablet OS and BlackBerry 10). The first product to contain this browser, the BlackBerry Torch 9800, was named after the company.

DataViz

[edit]

On September 8, 2010, DataViz, Inc. sold their office suite Documents To Go and other assets to Research In Motion for $50 million.[156] Subsequently, the application which allows users to view and edit Microsoft Word, Microsoft Excel and Microsoft PowerPoint was bundled on BlackBerry Smartphones and tablets.

Viigo

[edit]

On March 26, 2010, the company announced its acquisition of Viigo, a Toronto-based company that developed the popular Viigo for BlackBerry applications, which aggregated news content from around the web. Terms of the deal were not disclosed.[157]

QNX

[edit]

RIM reached an agreement with Harman International on April 12, 2010, for RIM to acquire QNX Software Systems. The acquired company was to serve as the foundation for the next generation BlackBerry platform that crossed devices.[158][159][160] QNX became the platform for the BlackBerry PlayBook and BlackBerry 10 Smartphones.

The Astonishing Tribe

[edit]

The Astonishing Tribe (TAT), a user interface design company based in Malmö, Sweden, was acquired by the company on December 2, 2010.[161][162] With a history of creating user interfaces and applications for mobile, TAT contributed heavily to the user experience of BlackBerry 10 as well as the development of its GUI framework, Cascades.

JayCut

[edit]

In July 2011, RIM brought on JayCut, a Sweden-based company that is an online video editor.[163] JayCut technology was incorporated into the media software of BlackBerry 10.[163]

Paratek Microwave

[edit]

In March 2012, RIM acquired Paratek Microwave,[164] bringing their adaptive RF Tuning technology into BlackBerry handsets.

Tungle.me

[edit]

On September 18, 2012, it was announced that the RIM social calendaring service,[165] Tungle.me would be shut down on December 3, 2012. RIM acquired Tungle.me in April 2011.[166]

Newbay

[edit]

In July 2011, RIM acquired NewBay, an Irish-based company that is an online video, pics and tool for media networks editor.[167] RIM subsequently sold NewBay to Synchronoss in December 2012 for $55.5 million.[168]

Scoreloop

[edit]

On June 7, 2011, Scoreloop was acquired by BlackBerry for US$71 million.[169][170] It provided tools for adding social elements to any game (achievements/rewards etc.) and was central to the BlackBerry 10's Games app. On December 1, 2014, all Scoreloop services were shut down.[171]

Gist

[edit]

Gist was acquired in February 2011, by BlackBerry. Gist was a tool that helps users to organise and view all their contacts in one place. Gist's services closed down on September 15, 2012, in order for the company to focus on BlackBerry 10.[172]

Scroon

[edit]

BlackBerry Ltd. acquired Scroon in May 2013. The French startup manages Facebook, Twitter and other social-media accounts for large clients like luxury-good maker LVMH Moet Hennessy Louis Vuitton SA, wireless operator Orange SA (ORA) and Warner Bros. Entertainment. The deal was publicly announced in November 2013. According to Scroon founder, Alexandre Mars, he had not disclosed the purchase by BlackBerry before because of the "delicate media buzz" around the company. Scroon is part of BlackBerry's strategy to profit from the BlackBerry Messenger instant-messaging service by utilizing the newly unveiled BBM Channels. Financial terms were not disclosed.[173]

Movirtu

[edit]

Movirtu was acquired in September 2014, by BlackBerry. Movirtu is a U.K. startup that allows multiple phone numbers to be active on a single mobile device. At the time of the acquisition BlackBerry announced they would expand this functionality beyond BlackBerry 10 to other mobile platforms such as Android and iOS.[174]

Secusmart

[edit]

Secusmart was acquired in September 2014. The German-based company was one of the steps to position BlackBerry as the most secure provider in the mobile market. Secusmart had the agreement to equip the German Government with high secure mobile devices that encrypt voice as well as data on BlackBerry 10 devices. Those phones are currently in use by Angela Merkel and most of the ministers as well as several Departments and the Parliament.[175][non-primary source needed]

WatchDox

[edit]

WatchDox was an Israel-based Enterprise File Synchronization and Sharing company which specialized in securing access to documents on a cloud basis. BlackBerry acquired the company in April 2015.[176] On December 8, 2016, BlackBerry renamed WatchDox to BlackBerry Workspaces.[177]

In August 2019, BlackBerry closed down its Israel development center.[178]

AtHoc

[edit]

On July 22, 2015, BlackBerry announced that it had acquired AtHoc, a provider of secure, networked emergency communications.[179]

Good Technology

[edit]

On September 4, 2015, BlackBerry announced the acquisition of mobile security provider Good Technology for $425 million.[180] On December 8, 2016, it rebranded Good's products and integrated them into the BlackBerry Enterprise Mobility Suite, a set of tiered software offerings for its enterprise customers.[181]

Encription

[edit]

On February 24, 2016, BlackBerry acquired UK-based cyber security consultancy Encription.[182]

Cylance

[edit]

On November 16, 2018, Cylance was purchased for US$1.4 billion by BlackBerry Limited in an all cash deal.[183] The technology behind Cylance would enable BlackBerry to add artificial intelligence capabilities to its existing software products for IoT applications and other services. Cylance ran as a separate division within BlackBerry Limited's operations.[184]

On December 16, 2024, it was announced that BlackBerry sold Cylance to Arctic Wolf for US$160 million.[185]

Software

[edit]

BlackBerry Unified Endpoint Manager (UEM)

[edit]

An Enterprise Mobility Management platform that provides provisional and access control over smartphones, tablets, laptops, and desktops with support for all major platforms including iOS, Android (including Android for Work and Samsung KNOX), BlackBerry 10, Windows 10, and Mac OS. UEM (formerly known as BES) also acts as a unified management console and server for BlackBerry Dynamics, BlackBerry Workspaces, and BlackBerry 2FA.[186]

BlackBerry Dynamics (Formerly Good Dynamics)

[edit]

A Mobile Application Management platform that manages and secures app data through application virtualization. The BlackBerry Dynamics suite of apps includes email, calendar, contacts, tasks, instant messaging, browsing, and document sharing. The BlackBerry Dynamics SDK allows developers to utilize the platform's security, and add functionality from BlackBerry's other solutions into their applications.[187]

BlackBerry Workspaces (Formerly WatchDox)

[edit]

An Enterprise File Synchronization and Sharing (EFSS) platform, Workspaces provides file-level digital rights management controls alongside file synchronization and sharing functionality. [citation needed]

BlackBerry 2FA (Formerly Strong Authentication)

[edit]

A two-factor, certificate-based VPN authentication solution that allows users to authenticate without requiring PINs or passwords. [citation needed]

BBM Enterprise

[edit]

An IP-based enterprise instant messaging platform that provides end-to-end encryption for voice, video, and text-based communication. On February 7, 2017, Blackberry released the BBM Enterprise SDK, a "Communications Platform as a Service" kit that allows developers to incorporate BBM Enterprise's messaging capabilities into their own applications. Said capabilities include secure messaging, voice, video, file sharing, and presence information.[188]

BlackBerry AtHoc

[edit]

An emergency communication system, AtHoc provides two-way messaging and notifications across a range of devices and platforms. On May 17, 2017, BlackBerry released AtHoc Account to help businesses more easily keep track of their staff in an emergency.[189]

SecuSUITE

[edit]

An anti-eavesdropping solution that provides voice, data, and SMS encryption. [citation needed]

BlackBerry QNX

[edit]

A real-time embedded operating system, QNX drives multiple software systems in modern auto vehicles, and forms the basis of solutions like BlackBerry Radar, an IoT-based asset tracking system for the transportation industry.[190]

BlackBerry IVY

[edit]

BlackBerry IVY is an edge-to-cloud vehicle data platform.[191]

Patent litigation

[edit]

Since the turn of the century, RIM has been embroiled in a series of suits relating to alleged patent infringement.[192]

Glenayre Electronics

[edit]

In 2001, Research In Motion sued competitor Glenayre Electronics Inc. for patent infringement, partly in response to an earlier infringement suit filed by Glenayre against RIM.[7] RIM sought an injunction to prevent Glenayre from infringing on RIM's "Single Mailbox Integration" patent.[193] The suit was ultimately settled in favour of RIM. [citation needed]

Good Technology

[edit]

In June 2002, Research In Motion filed suit against 2000 start-up and competitor Good Technology.[194] RIM filed additional complaints throughout the year.[195] In March 2004, Good agreed to a licensing deal, thereby settling the outstanding litigation.[196]

Handspring

[edit]

On September 16, 2002, Research In Motion was awarded a patent pertaining to keyboard design on hand-held e-mail devices. Upon receiving the patent, it proceeded to sue Handspring over its Treo device.[195][197] Handspring eventually agreed to license RIM's patent and avoid further litigation in November of the same year.[198]

NTP

[edit]

During the appeals, RIM discovered new prior art that raised a "substantial new question of patentability" and filed for a reexamination of the NTP patents in the United States Patent and Trademark Office. That reexamination was conducted separately to the court cases for infringement. In February 2006, the USPTO rejected all of NTP's claims in three disputed patents. NTP appealed the decision, and the reexamination process was still ongoing as of July 2006 (See NTP, Inc. for details).

On March 3, 2006, RIM announced that it had settled its BlackBerry patent dispute with NTP.[199] Under the terms of the settlement, RIM agreed to pay NTP US$612.5 million[199] in a "full and final settlement of all claims". In a statement, RIM said that "all terms of the agreement have been finalized and the litigation against RIM has been dismissed by a court order this afternoon. The agreement eliminates the need for any further court proceedings or decisions relating to damages or injunctive relief."[200]

Xerox

[edit]

On July 17, 2003, while still embroiled in litigation with NTP and Good Technology, RIM filed suit against Xerox in the U.S. District of Hartford, Connecticut. The suit was filed in response to discussions about patents held by Xerox that might affect RIM's business and also asked that patents held by Xerox be invalidated.[201]

Visto

[edit]

On May 1, 2006, RIM was sued by Visto for infringement of four patents.[202] Though the patents were widely considered invalid and in the same veins as the NTP patents – with a judgement going against Visto in the U.K.[203][204] – RIM settled the lawsuit in the United States on July 16, 2009, with RIM agreeing to pay Visto US$267.5 million plus other undisclosed terms.[205]

Motorola

[edit]

On January 22, 2010, Motorola requested that all BlackBerry smartphones be banned from being imported into the United States for infringing upon five of Motorola's patents. Their patents for "early-stage innovations", including UI, power management and WiFi, are in question.[206] RIM countersued later the same day, alleging anti-competitive behaviour and that Motorola had broken a 2003 licensing agreement by refusing to extend licensing terms beyond 2008.[207] The companies settled out of court on June 11, 2010.[208]

Eatoni

[edit]

On December 5, 2011, Research In Motion obtained an order granting its motion to dismiss plaintiff Eatoni's claims that RIM violated Section 2 of the Sherman Antitrust Act and equivalent portions of New York's Donnelly Act. Eatoni alleged that RIM's alleged infringement of plaintiff's '317 patent constituted an antitrust violation. Eatoni Ergonomics, Inc. v. Research In Motion Corp., No. 08-Civ. 10079 (WHP) (S.D.N.Y. Dec 5, 2011), Memorandum and Order, p. 1 (Pauley, J.).[209]

Mformation

[edit]

In July 2012, a U.S. federal court jury awarded damages (later overturned) of $147 million against Research In Motion. The jury decided that Research In Motion had violated patents of Mformation and calculated damages of $8 each on 18.4 million units for royalties on past sales of devices to nongovernment U.S. customers only, not including future royalty payments inside and outside the U.S.[210] On August 9, 2012, that verdict was overturned on appeal. RIM had argued that Mformation's patent claims were invalid because the processes were already being used when Mformation filed its patent application. Judge James Ware said Mformation failed to establish that RIM had infringed on the company's patent.[211]

Qualcomm

[edit]

On May 26, 2017, BlackBerry announced that it had reached an agreement with Qualcomm Incorporated resolving all amounts payable in connection with the interim arbitration decision announced on April 12, 2017. Following a joint stipulation by the parties, the arbitration panel has issued a final award providing for the payment by Qualcomm to BlackBerry of a total amount of U.S.$940,000,000 including interest and attorneys' fees, net of certain royalties due from BlackBerry for calendar 2016 and the first quarter of calendar 2017.[212]

Facebook

[edit]

On March 8, 2018, BlackBerry Limited sued Facebook Inc. in federal court in Los Angeles. According to BlackBerry Limited, Facebook has built swaths of its empire on the messaging technology which was originally developed by them during the time when the Facebook chief, Mark Zuckerberg, was still living in a Harvard University dorm room.[213] Blackberry Limited alleged that many features of the Facebook messaging service infringe on BlackBerry patents.[214] In January 2021, BlackBerry shares jumped 20% after settling its patent dispute with Facebook.[215]

Controversies

[edit]

Environmental record

[edit]

In November 2011, Blackberry, then RIM, was ranked 15th out of 15 electronics manufacturers in Greenpeace's re-launched Guide to Greener Electronics.[216] In its 2012 report on progress relating to conflict minerals, the Enough Project rated RIM the sixth highest of 24 consumer electronics companies.[217] In 2014, RIM partnered with Solutions for Hope to expand the number of conflict-free mineral regions in the Congo.[218]

Service outages

[edit]

On October 10, 2011, RIM experienced one of the worst service outages in the company's history. Tens of millions of BlackBerry users in Europe, the Middle East, Africa, and North America were unable to receive or send emails and BBM messages through their phones.[219] The outage was caused as a result of a core switch failure, "A transition to a back-up switch did not function as tested, causing a large backlog of data, RIM said."[220] Service was restored on October 13, with RIM announcing a $100 package of free premium apps for users and enterprise support extensions.[221][222]

Government access to encrypted communication

[edit]

After a four-year stand-off with the Indian government over access to RIM's secure networks, the company demonstrated the ability to intercept consumer email and messaging traffic between BlackBerry handsets, and make these encrypted communications available to Indian security agencies. This agreement does not include its enterprise services.[223]

Through the Canadian Mutual Legal Assistance in Criminal Matters Act, Blackberry has given its master encryption keys to law enforcement, allowing the Royal Canadian Mounted Police to view communications and other encrypted information.[224] Then-CEO John Chen defended the company's sharing of data, saying "(we) have long been clear in our stance that tech companies as good corporate citizens should comply with reasonable lawful access requests."[225]

See also

[edit]

References

[edit]

Further reading

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
BlackBerry Limited is a Canadian that provides intelligent security solutions, including cybersecurity, endpoint management, and (IoT) software, primarily to enterprises and governments worldwide. Formerly known as Research In Motion, it was founded in 1984 by and Doug Fregin in , where its headquarters remain at 2200 University Ave. E, Waterloo, ON, Canada N2K 0A7, initially developing wireless communication technologies such as pagers and two-way radios. The company rose to prominence in the early with its BlackBerry smartphones, which featured physical keyboards, secure , and enterprise-grade encryption, capturing a dominant among business users and officials due to their reliability in handling sensitive . However, BlackBerry's hardware business declined sharply after 2007 amid competition from Apple's and Android devices, which offered superior touch interfaces, app ecosystems, and consumer appeal, prompting a strategic pivot away from consumer smartphones toward . By the , BlackBerry had exited device manufacturing, licensing its brand briefly to partners before focusing on software assets like the real-time operating system for automotive and industrial embedded systems, and cybersecurity tools enhanced through acquisitions such as for .

Origins and Early Development

Founding and Pre-Smartphone Era (1984–2000)

Research In Motion Limited (RIM) was incorporated on March 7, 1984, in , , by engineering students and , who had been collaborating on wireless communication projects since high school. Lazaridis, aged 23 and the son of Greek immigrants who had settled in , provided initial funding of $15,000 from his parents supplemented by a , driven by an ambition to develop networked wireless systems inspired by early computing concepts. The duo focused initially on prototyping hardware and software for short-range wireless data transmission, aiming to enable computer-to-computer connectivity without wired infrastructure, though the company operated from Lazaridis's parents' basement amid financial constraints. RIM's debut product, the Budgie—a modular networking system comprising a , handheld terminals, and software for transfer—was released in the mid-1980s but achieved limited commercial uptake due to high costs, technical complexity, and a nascent market for such technology. By 1988, the firm shifted toward broader applications, securing early contracts for custom solutions like barcode scanners and developing for modems compatible with emerging packet-switched networks such as Mobitex. In 1991, RIM partnered with GE Mobile Data to advance software, laying groundwork for handheld integration, while in 1994 it introduced North America's first Mobitex-based mobile point-of-sale terminal, demonstrating practical low-bandwidth transmission for retail and logistics. These efforts sustained the company through the early 1990s, though revenues remained modest, hovering below $1 million annually by 1995, reliant on government grants and niche consulting. A pivotal advancement occurred in 1996 with the launch of the Inter@ctive Pager 900, RIM's first commercially viable handheld device—a clamshell two-way pager operating on the Mobitex network, enabling users to send and receive short messages, emails, and calendar alerts with a QWERTY keyboard and LCD screen. Priced at around $650 and weighing approximately 6 ounces, it targeted professionals needing off-grid connectivity, marking RIM's entry into consumer-facing wireless hardware and generating initial sales success through partnerships with carriers like BellSouth. Successors like the Inter@ctive Pager 950 in 1998 refined the form factor with improved processors and memory, while 1999 saw the introduction of the BlackBerry-branded 850 pager, which expanded email capabilities via proprietary servers for push notifications. RIM went public in 1997, listing on the Toronto Stock Exchange and NASDAQ, raising capital to scale development amid growing demand for data-centric devices. By 2000, these pagers had established RIM's expertise in secure, low-power wireless protocols, setting the stage for integrated email handhelds, though voice telephony remained absent, distinguishing them from emerging cellular phones.

Initial Product Launches and Growth (2001–2003)

In 2002, Research In Motion (RIM) launched the , its first device combining wireless with integrated mobile telephony, though voice calls required a wired headset. Released in on the Rogers Wireless network in April 2002 and introduced in the United States at Comdex in on March 4, 2002, the 5810 featured a keyboard, monochrome display, and always-on via RIM's proprietary network, targeting enterprise users seeking converged data and voice capabilities. This launch expanded beyond pagers into the emerging category, emphasizing secure, real-time email delivery that minimized battery drain compared to polling-based systems. RIM's fiscal 2002, ending March 2, 2002, saw revenue rise 33% to $294 million from $221 million in fiscal 2001, driven by growing adoption of email devices in corporate environments. The subscriber base nearly doubled to 320,000 users across more than 14,400 organizations, reflecting demand for devices that enabled remote access to Exchange and other enterprise servers without compromising security. Service revenues from BlackBerry subscriptions contributed significantly, as organizations valued the encrypted, server-mediated communications that reduced latency and supported for mobile professionals. By fiscal 2003, ending February 28, 2003, subscribers surpassed 500,000 worldwide, with users in over 10,000 companies and organizations, underscoring rapid enterprise penetration amid limited consumer alternatives for secure . Revenue for the year reached approximately $470 million, a 65% increase from fiscal 2002, fueled by device sales and network service fees. RIM introduced the Connect program in 2003, allowing third-party mobile manufacturers to embed software into their handsets, broadening compatibility while maintaining RIM's control over the backend . This period solidified 's reputation for reliability in high-stakes sectors like and , where and minimal downtime were paramount.

Peak Market Dominance

BlackBerry Device Expansion (2004–2008)

During 2004–2008, Research In Motion (RIM) accelerated the diversification of its device portfolio, evolving from enterprise-centric two-way pagers to feature-rich smartphones with capabilities, color screens, and consumer-oriented functionalities such as cameras and media players. This expansion coincided with rapid subscriber growth, from over 1 million accounts in 2004 to approximately 8 million by the end of fiscal 2007 and over 14 million by March 1, 2008, driven by increased device shipments and broader market adoption. RIM's strategy emphasized reliability alongside new hardware innovations, enabling penetration into non-corporate segments while maintaining security advantages for business users. A landmark in consumer expansion was the September 12, 2006, release of the 8100, the first model to integrate a 2-megapixel camera, video recording, music and video playback, a for navigation, and a SureType hybrid keyboard on a color TFT display. Priced accessibly and marketed through carriers like , the Pearl shifted BlackBerry from a niche tool to a versatile personal device, appealing to users seeking entertainment features without sacrificing core messaging strengths. Variants such as the Pearl 8110 and 8130 followed in 2007, adding GPS for location-based services. The 2007 introduction of the series, including the 8300, GPS-equipped 8310, and Wi-Fi-enabled 8320, further broadened accessibility with full keyboards, expanded memory, and support for multimedia attachments, positioning Curves as mid-range options for both professionals and everyday users. These models contributed to a 115% year-over-year increase in device shipments in the fourth quarter of fiscal 2008, totaling 4.4 million units. In 2008, RIM unveiled high-end devices like the BlackBerry Bold 9000 on August 5, which featured EDGE/3G connectivity, a 2.6-inch 480x320 display, 1 GB storage, and enhanced browser performance for faster web access. The November launch of the 9500 introduced RIM's first surepress with haptic feedback, attempting to compete in the emerging touch-interface market while retaining . By late fiscal 2008, over half of net subscriber additions originated from non-enterprise customers, reflecting the success of these and connectivity enhancements in attracting individual consumers.

Enterprise Adoption and Security Leadership (2009–2011)

During this period, BlackBerry devices, managed via the BlackBerry Enterprise Server (BES), solidified their position as the preferred platform for corporate and government users prioritizing secure mobile communications. Research In Motion (RIM) reported that enterprise customers accounted for a significant portion of its subscriber base, with BES deployments enabling centralized control over data encryption, device management, and compliance with regulatory standards. By 2011, BlackBerry held approximately 52% of the enterprise smartphone market share, reflecting widespread adoption among companies and public sector entities that valued its and proprietary network infrastructure, which routed messages through RIM's servers for enhanced security isolation from public carriers. Security leadership was underscored by 's reputation for robust defenses against interception, as its architecture compressed and encrypted data in transit using AES-256 standards, making it a staple for high-stakes environments. The U.S. government emerged as RIM's largest , relying on for secure and messaging across federal agencies, driven by certifications from bodies like the Committee on National Security Systems (CNSS). In the UK, the Communications-Electronics Security Group (CESG) reaffirmed IL3 accreditation for in October 2011, citing its private network operations that prevented unauthorized access even from carrier-level threats. This era saw continued revenue growth tied to enterprise expansions, with RIM's fiscal 2011 revenue reaching $19.9 billion, a 33% increase year-over-year, fueled by service fees from BES subscriptions and device activations in professional sectors. However, while security features like over-the-air updates and remote wipe capabilities maintained trust, emerging iOS and Android alternatives began testing enterprise IT policies, though BlackBerry's closed ecosystem retained a lead in regulated industries through 2011. Government contracts, including those with U.S. defense entities, highlighted the platform's edge in classified communications, where alternatives often lacked equivalent vetted safeguards.

Competitive Landscape and Early Pressures

During its period of peak dominance from 2009 to 2011, BlackBerry Limited (then operating as Research In Motion) faced intensifying competition primarily from Apple's iPhone, launched in June 2007, and devices powered by Google's Android operating system, which debuted in October 2008. These entrants shifted the smartphone paradigm toward full-touchscreen interfaces, multimedia capabilities, and expansive app ecosystems, contrasting BlackBerry's emphasis on physical QWERTY keyboards, enterprise-grade security, and push email for business users. At its height in 2009, BlackBerry commanded approximately 20% of the global smartphone market and over 50% in the United States, with annual device shipments exceeding 50 million units. However, Apple's iOS and Android's open-source model enabled rapid innovation and developer adoption, eroding BlackBerry's lead as consumers prioritized intuitive touch interfaces and diverse applications over specialized productivity tools. Early pressures manifested in accelerating market share erosion, particularly in consumer segments, as iPhone sales surged and Android proliferated through partnerships with manufacturers like and HTC. By December 2010, the had surpassed BlackBerry to claim the top spot in U.S. smartphone market share, according to Nielsen , while Android devices gained traction with customizable hardware and lower price points. BlackBerry's leadership, including co-CEOs and , initially underestimated these threats, viewing devices as a fleeting novelty rather than a fundamental shift driven by user demand for seamless web browsing, media consumption, and third-party apps—capabilities bolstered by Apple's (launched July 2008) and Google's Android Market (October 2008). This misjudgment stemmed from BlackBerry's entrenched enterprise focus, where its proprietary BlackBerry Enterprise Server provided unmatched encryption and remote management, but failed to address consumer preferences for open platforms that facilitated viral adoption through integration and gaming. Compounding these competitive dynamics, BlackBerry encountered internal and operational strains, including delayed responses to app development needs—its BlackBerry App World launched in April 2009 but struggled to attract developers amid and Android's momentum—and vulnerabilities exposed by high-profile service outages, such as the global BlackBerry network disruption in October 2011 affecting and messaging for millions. By September 2011, BlackBerry peaked at 85 million active subscribers worldwide, yet Android overtook it in U.S. that year, signaling the onset of broader decline as hardware commoditization favored versatile, software-driven over BlackBerry's hardware-software integration. These pressures highlighted causal vulnerabilities: BlackBerry's closed, carrier-dependent model inhibited scalability against rivals' advantages, where network effects amplified user growth and velocity.

Decline in Consumer Market

Response to Smartphone Revolution (2011–2013)

In 2011, BlackBerry Limited encountered accelerating erosion of its market position amid the dominance of touchscreen devices running and Android operating systems, with U.S. market share declining from 31.6% in December 2010 to 16% by late 2011 as Android's share rose to 47.3%. The company's fiscal 2011 revenue reached a peak of $19.79 billion, supported by sales of 7 devices like the Bold 9900, but underlying pressures from weaker consumer adoption of its physical-keyboard-centric handsets foreshadowed contraction. On January 22, 2012, co-founders and co-CEOs and resigned amid investor demands for accountability over delayed product transitions and stagnant innovation, with German executive appointed as sole CEO to refocus operations. Heins emphasized continuity in enterprise security strengths while accelerating development of a new platform, rejecting drastic overhauls but initiating cost reductions, including executive reshuffles and abandonment of proposals like cross-platform expansion of the BlackBerry Messenger (BBM) service. Heins' primary response centered on the long-delayed BlackBerry 10 (BB10) operating system, built on the QNX kernel acquired in April 2010, intended to support both touchscreen and keyboard interfaces with improved multitasking and native apps to rival iOS and Android ecosystems. The BB10 platform, first previewed in 2011, faced repeated postponements from an initial late-2011 target due to software integration challenges and developer ecosystem buildup, culminating in its official launch on January 30, 2013, alongside the touchscreen BlackBerry Z10 smartphone. Complementary efforts included the April 2011 release of the BlackBerry PlayBook tablet, which adopted QNX but suffered from incomplete native applications for email and productivity, high pricing at $499, and poor sales, contributing to a $485 million inventory write-down by late 2011. These initiatives aimed to bridge enterprise reliability with consumer features like gesture-based navigation, yet internal divisions—such as debates over prioritizing keyboards versus full touchscreens—hampered execution. By fiscal 2012, revenue had fallen 36% to $12.58 billion with a net loss of $0.68 billion, reflecting subscriber stagnation at around 77 million active users globally and U.S. market share dipping to 7.3% by November 2012. Fiscal 2013 saw further deterioration, with revenue at $8.51 billion and a $3.89 billion net loss, exacerbated by $965 million in charges for unsold Z10 inventory despite initial hype around BB10's potential to recapture share. BlackBerry's lag in fostering a robust third-party app store—lagging competitors by years—and overreliance on proprietary hardware advantages failed to stem the shift toward open ecosystems, prompting September 2013 announcements of workforce reductions up to 40% from approximately 12,700 employees to stem losses. These measures underscored a reactive posture, as the company's enterprise moat proved insufficient against consumer-driven innovation, resulting in global smartphone market share contracting to under 6% by year-end.

Failed Hardware Strategies and OS Transitions

In response to the iPhone's 2007 launch, BlackBerry released the smartphone in as its first device, featuring a "SurePress" clickable display intended to mimic physical button feedback. However, the suffered from unresponsive touch input, frequent software crashes, typing difficulties on its virtual keyboards, and hardware reliability issues, leading Verizon Wireless to replace nearly all of the approximately one million units sold in at a cost of $500 million to . These flaws stemmed from the device's underlying , which was not optimized for interfaces, resulting in poor and contributing to BlackBerry's lag in the consumer market. The tablet, launched in April 2011 with QNX-based software, represented an early hardware diversification attempt but failed commercially due to limited native app support, dependency on a paired phone for core functions, and inability to compete with the iPad's . Sales underperformed targets significantly, prompting Research In Motion (RIM, BlackBerry's former name) to record a $485 million writedown in 2011, with cumulative PlayBook-related losses reaching about $1.5 billion by that point despite generating only around 2% of company revenue. This hardware misstep highlighted BlackBerry's challenges in building compelling consumer devices amid a market shifting toward seamless app integration and independent functionality. BlackBerry's major OS transition involved abandoning its legacy Java-based for (BB10), a kernel-derived platform emphasizing multitasking and gesture-based navigation, with devices launching in January 2013 starting with the touchscreen Z10. The Z10 shipped one million units in its first month, but subsequent sales disappointed due to a sparse app ecosystem—lacking ports of major titles like or —compared to and Android, which had years of developer momentum. The keyboard-equipped Q10, released in April 2013, fared slightly better among enterprise loyalists but could not offset the Z10's consumer shortfall, as market preferences had solidified around full-touch devices with robust app stores. Internal divisions exacerbated these failures; co-founder advocated prioritizing physical keyboards over all-touch designs like the Z10, delaying a unified and alienating potential users. By BlackBerry's fiscal Q3 2013, the company reported an $84 million loss tied to weak BB10 demand, followed by a $4.4 billion net loss in Q4, including a $2.7 billion writedown on unsold BB10 inventory after shipping only 4.3 million units total that year. This OS shift, executed too late against entrenched competitors, underscored BlackBerry's hardware-software misalignment, as BB10's technical merits in security and efficiency could not compensate for ecosystem deficits, eroding from over 20% in 2009 to under 3% by 2013.

Strategic Pivot Under John Chen

Leadership Turnaround and Cost-Cutting (2013–2015)

In November 2013, BlackBerry's board appointed John Chen as executive chairman and interim CEO, replacing following the collapse of a $4.7 billion deal and amid mounting losses from unsold inventory and failed hardware launches. Chen, drawing on prior experience turning around Sybase, prioritized operational streamlining over consumer device expansion, halting development of multiple new smartphones to eliminate per-unit losses exceeding $100. Chen accelerated cost reductions inherited from earlier restructuring, including additional layoffs beyond the 4,500 jobs cut in September 2013, with further reductions in May and July 2015 targeting underperforming areas like hardware . These measures, combined with writedowns and optimizations, stemmed cash burn that had reached hundreds of millions quarterly, enabling BlackBerry to post operating profits in select periods by mid-2015. Asset divestitures supported liquidity, such as the March 2014 sale of BlackBerry's headquarters to Brookfield Property Group for an undisclosed sum, part of broader efforts to shed non-core amid a contraction from over 12,000 to around 6,000 employees by early 2015. Financial results reflected progress: fiscal 2014 (ended February 2014) saw a $5.9 billion annual net loss but quarterly improvements via slashed operating expenses, while fiscal 2015's fourth quarter (ended February 2015) delivered a $28 million net profit despite 32% revenue decline to $660 million, signaling stabilization. Chen described the company as "financially under control" by March 2015, with the revenue slide appearing to bottom out after years of hardware-driven erosion.

Shift to Software and Services Model

Upon assuming the role of interim CEO on November 4, 2013, John Chen announced that BlackBerry would prioritize its software and services operations over device hardware manufacturing, urging employees to adopt a software-centric mindset to leverage the company's strengths in secure enterprise solutions. This directive marked the initial phase of de-emphasizing the unprofitable consumer smartphone business, which had incurred substantial losses amid competition from and Android devices, in favor of recurring revenue streams from and secure communications platforms like BlackBerry Enterprise Service (BES). Chen, drawing from his experience turning around Sybase, emphasized cross-platform compatibility to retain enterprise customers migrating to rival operating systems, positioning software as the core for long-term viability rather than subsidizing hardware sales. By fiscal year 2015 (ended February 28, 2015), this strategic emphasis yielded tangible results, with software and services increasing 24% year-over-year in the fourth quarter to contribute significantly to the company's first profitable quarter since 2012, alongside positive from operations. Key initiatives included enhancements to BES12, a solution supporting multiple device types, which drove adoption in government and corporate sectors valuing BlackBerry's and compliance features. Hardware , conversely, declined as production scaled back, with only 13.7 million devices recognized in fiscal compared to prior peaks, underscoring the causal link between hardware commoditization and the pivot to higher-margin, subscription-based services. This period also saw investments in , the for embedded applications, to expand beyond mobility into industrial IoT, though from these segments remained nascent amid the broader hardware retrenchment. The shift mitigated existential risks by diversifying away from device subsidies that had eroded margins—hardware often sold at a loss to service fees—but required aggressive cost-cutting, including workforce reductions of over 4,500 employees by mid-2015, to fund software R&D. Empirical data from quarterly filings confirmed software's stabilizing role, with segments like device management and secure generating $162 million in the first quarter of fiscal 2016 (ended November 2015), signaling early traction despite overall contraction from legacy hardware dependencies. Critics noted potential challenges in scaling software independently of BlackBerry's , yet Chen's focus on verifiable enterprise demand, rather than hype, aligned with causal realities of market saturation in hardware.

Key Acquisitions and Partnerships (2013–2023)

Under John Chen's leadership, BlackBerry pursued targeted acquisitions to strengthen its and cybersecurity offerings, shifting focus from hardware to secure communications and endpoint protection. In July 2014, BlackBerry announced the acquisition of Secusmart , a German firm specializing in voice and data encryption with anti-eavesdropping technology, which was completed in December 2014 following regulatory approval; this move enhanced BlackBerry's portfolio for and enterprise users seeking protection against surveillance threats. In April 2015, BlackBerry acquired WatchDox Ltd., an Israeli company providing secure file-sharing and dynamic watermarking technology, for approximately $100 million; the deal bolstered BlackBerry's content security capabilities, enabling granular control over document access across devices and integrating with its enterprise mobility management tools. Later that year, in September 2015, BlackBerry completed the $425 million cash acquisition of Good Technology, a U.S.-based mobile device management (MDM) provider; this strengthened BlackBerry's cross-platform enterprise mobility platform, allowing secure management of iOS, Android, and other devices while consolidating its position in the MDM market amid competition from rivals like MobileIron. BlackBerry continued building its cybersecurity expertise with the 2016 acquisition of Encription Secure Networks Ltd., a UK-based consultancy focused on , for an undisclosed sum; this added specialized consulting services to support enterprise implementations. The most significant deal came in November 2018, when BlackBerry agreed to acquire Cylance Inc., a U.S. AI-driven firm, for $1.4 billion in cash plus unvested options, closing in February 2019; Cylance's machine learning-based threat prevention technology integrated with BlackBerry's Spark platform, aiming to preempt cyberattacks rather than react to them, though the unit later underperformed leading to its divestiture in 2024. Key partnerships complemented these acquisitions by expanding market reach in IoT and secure communications. In 2016, BlackBerry formed a licensing agreement with PT Telekomunikasi Indonesia for a producing the BB Merah Putih smartphone, targeting the with localized secure devices. Expanded collaborations with carriers like and TELUS integrated BlackBerry's AtHoc software into their networks for critical event communications. In 2022, BlackBerry partnered with to co-develop BlackBerry IVY, a vehicle data platform leveraging for intelligent automotive insights, enhancing its IoT footprint in connected cars.

Post-Chen Transformation

Executive Transition and Business Separation Plans (2023–2024)

In October 2023, BlackBerry Limited announced that John Chen, who had served as CEO and Executive Chair since November 2013, would retire effective November 4, 2023, following a decade-long tenure marked by the company's pivot from hardware to software-focused operations. , the lead , was appointed interim CEO to oversee the transition while the board searched for a permanent successor. This leadership change coincided with a strategic review, including plans to explore separating the company's IoT and cybersecurity businesses into standalone public entities to enhance focus and unlock shareholder value. The separation initiative, internally termed Project Imperium and initiated earlier in May 2023, aimed to centralize functions and establish independent, profitable units amid ongoing financial pressures, including persistent losses and a need for cost efficiencies. On December 11, 2023, BlackBerry appointed John Giamatteo, former president of its cybersecurity unit, as permanent CEO, while abandoning specific plans for an initial public offering of the IoT business due to market conditions. The company reaffirmed its commitment to the broader separation, engaging consultants to facilitate the process and prepare strategic alternatives such as potential sales. By February 2024, BlackBerry reported substantive progress, having restructured into standalone IoT and cybersecurity divisions with dedicated leadership teams, including divisional CFOs, chief product officers, and , alongside separate sales, marketing, and R&D functions. This operational decoupling supported aggressive cost reductions targeting $100 million in annualized net profit improvements through headcount cuts, office closures, and margin expansions, with $55 million already identified in the current quarter. The efforts also included a $200 million debenture raise to reduce by 45% since Chen's departure, positioning the divisions for independent profitability and cash flow positivity by the fourth quarter of fiscal 2025.

Recent Financial Recovery and Focus Areas (2024–Present)

BlackBerry Limited reported signs of financial stabilization and recovery in 2025, achieving consecutive quarters of profitability amid a strategic emphasis on high-margin software segments. In the fourth quarter of FY2025, ending February 28, 2025, revenue totaled $141.7 million, with adjusted gross margins at 74% and gross margins at 73%, surpassing analyst expectations across cybersecurity and IoT divisions. For the third quarter of FY2025, revenue reached $162 million, again beating guidance for both cybersecurity and IoT, reflecting resilient demand for secure communications and embedded systems. This progress continued into FY2026, with second-quarter revenue rising 3% year-over-year to $129.6 million on September 25, 2025, propelled by a 15% increase in revenue to $63.1 million; the company also posted a 75% adjusted and generated positive for the first time in several years during November 2024. In response, BlackBerry raised its full FY2026 revenue forecast to $519–$541 million from a prior range of $508 million, citing sustained software spending despite broader market headwinds in consumer tech. These metrics indicate a shift from prior hardware-related losses toward sustainable profitability in enterprise-focused operations, though total revenue remained below peak historical levels due to the completed exit from device manufacturing. Under CEO John Giamatteo, appointed in 2024 following John Chen's retirement, BlackBerry intensified focus on cybersecurity platforms for endpoint protection and secure communications, alongside real-time operating systems for automotive and industrial IoT applications. The company hosted an Investor Day on October 16, 2024, detailing opportunities for scalable growth in these areas, including compliance with emerging regulations like the through QNX's safety-certified software. In 2025, BlackBerry relaunched the brand to underscore its dominance in embedded systems, targeting expanded adoption in vehicle software-defined architectures amid rising demand for secure, real-time processing in over 255 million vehicles globally. Cybersecurity efforts emphasized AI/ML-driven threat detection, retaining key from prior divestitures to serve and enterprise clients wary of supply-chain vulnerabilities. This dual-pillar strategy prioritizes recurring revenue from subscriptions and licensing, aiming to leverage BlackBerry's patent portfolio for defensibility against commoditized competitors.

Core Technologies and Products

Mobile Operating Systems Evolution

BlackBerry's mobile operating systems originated with the proprietary (initially termed RIM OS), designed primarily for secure wireless email and paging on early devices like the BlackBerry 850 introduced in 1999. This platform evolved through versions supporting Java-based applications, physical keyboards, and push messaging, achieving dominance in enterprise markets during the due to its reliability and battery efficiency. By 7, released in 2011 for devices such as the Bold 9900, the system incorporated hybrid trackpad and touchscreen input, , and enhanced multimedia, yet struggled with a limited app ecosystem compared to emerging competitors. In response to the and Android's rise, Research In Motion (rebranded BlackBerry Limited in January 2013) developed (BB10) as a complete architectural overhaul, leveraging the acquired in 2010 for superior multitasking, security partitioning, and compliance. BB10 launched globally on January 30, 2013, debuting on the Z10 (full ) and Q10 (with physical keyboard), featuring a gesture-based interface, unified "BlackBerry Hub" for communications, and an initial native app runtime later augmented by Android app support via a . This shift aimed to unify consumer and enterprise experiences but required new hardware, as legacy devices running OS 7 could not upgrade due to incompatible architectures. BB10's technical strengths, including robust and over-the-air updates, proved insufficient to recapture , which had plummeted below 5% by amid developer preference for and Android. BlackBerry ceased consumer OS development by mid-decade, pivoting to software licensing; support for BB10 and legacy (including version 7.1 and earlier) ended on January 4, 2022, terminating server-dependent services like , calls, and app connectivity, though offline functionality persisted. Subsequent efforts focused on enterprise adaptations of for non-mobile embedded systems, abandoning further iterations of consumer-facing mobile platforms.

QNX Real-Time OS and Automotive Dominance

QNX Software Systems, originally developed in 1980 as a commercial (RTOS) by Quantum Software Systems, features a architecture designed for high reliability in embedded environments. BlackBerry Limited (then Research In Motion) acquired QNX from in April 2010 for approximately $200 million, initially to bolster its mobile platform capabilities before shifting focus to automotive applications. The OS's compliance, deterministic performance, and support for multi-core processors enable it to handle safety-critical tasks without compromising security or uptime. In the automotive sector, powers advanced driver-assistance systems (ADAS), , digital cockpits, and software-defined vehicle (SDV) architectures, with certification up to ASIL-D for in , braking, and autonomous driving modules. It integrates for connectivity, over-the-air updates, and , facilitating seamless data processing in vehicles with up to 100 electronic control units (ECUs). By 2025, software runs in over 255 million vehicles globally, underscoring its entrenched role in production systems from traditional internal combustion engines to electric vehicles (EVs). BlackBerry's QNX maintains dominance through high design win rates, reportedly securing 90% of bids in recent quarters, driven by its proven scalability and compliance with automotive cybersecurity standards like UNECE WP.29. It is deployed by major original equipment manufacturers (OEMs) including , , , , , and , as well as suppliers like Bosch and Continental. Notably, 24 of the top 25 EV OEMs, spanning traditional automakers and startups, select for its reliability in high-stakes EV platforms, contributing to over 50% in software as of earlier assessments. Financially, the QNX segment has fueled BlackBerry's IoT revenue growth, with quarterly sales reaching $63.1 million in Q2 fiscal 2025 (ended May 31, 2025), a 15% year-over-year increase attributed to ADAS and demand amid automotive sector volatility. Full-year fiscal 2026 projections for hover around $508–$538 million, supported by expanding design wins in and , though sequential dips occur due to production cycles. In 2025, BlackBerry relaunched the brand to emphasize its leadership in automotive and industrial RTOS, introducing solutions like QNX Cabin for software-defined cockpits demonstrated at CES 2025. This positions against competitors like Android Automotive OS, leveraging its safety pedigree for zonal architectures in next-generation vehicles.

Cybersecurity and Secure Communications Platforms

BlackBerry's cybersecurity offerings primarily revolve around its platform, acquired in November 2018 for $1.4 billion, which employs for endpoint threat prevention. uses models trained on billions of data points to identify and block at the prevention stage, operating effectively even on offline devices by analyzing file characteristics without relying on cloud connectivity or signatures. Complementing this, provides (EDR) capabilities, including root cause analysis, threat hunting, and automated response, leveraging lightweight AI agents to monitor and act on threats before execution. In secure communications, BlackBerry Spark serves as a (UEM) and communications platform designed for enterprise and government use, emphasizing zero-trust architecture to secure devices, applications, and data flows. Introduced in , Spark enables encrypted messaging, voice, video calls, and while integrating with across ownership models like BYOD. BlackBerry SecuSUITE extends this with military-grade for voice calls, text messaging, and file transfers on Android, , and, as of October 10, 2025, Windows platforms, ensuring compliance with sovereignty requirements such as data hosting within national borders. Adopted by all G7 governments and 18 of the G20 nations for secure voice, messaging, and file communications, SecuSUITE emphasizes its role in government and defense sectors, with governments and critical sectors utilizing it for resistance to and support for group communications over international networks. BlackBerry AtHoc addresses secure communications in crisis scenarios through its critical event management system, which facilitates real-time notifications via mobile apps, , voice, , and desktop alerts to coordinate responses during disruptions. The platform integrates incident response tools for and accountability, serving over 2,000 organizations globally with a focus on high-availability and privacy-compliant operations. These platforms collectively position BlackBerry as a provider of sovereign-grade solutions, prioritizing and AI-driven prevention over reactive measures, with adoption driven by needs in and regulated industries.

Enterprise Software Suite

BlackBerry's Enterprise Software Suite centers on and secure productivity tools, enabling organizations to enforce policies, protect data, and facilitate compliant communications across diverse devices and networks. The suite supports hybrid work environments by integrating device management with encrypted collaboration features, targeting sectors such as government, finance, and where and regulatory adherence are paramount. A core component is BlackBerry Unified Endpoint Management (UEM), which delivers cross-platform oversight for , Android, Windows, and macOS devices, including bring-your-own-device (BYOD) and corporate-owned models. UEM features application , remote wipe capabilities, and zero-trust access controls to segregate corporate data from personal use, reducing breach risks through granular policy enforcement and real-time threat detection. Organizations deploy UEM to manage over multiple endpoints per user, with licensing capped at five devices per user to optimize . Complementing UEM are secure communications applications like BlackBerry Work, which unifies enterprise email, calendar, contacts, and document editing within a containerized environment to prevent data leakage. BlackBerry Workspaces extends this with encrypted and editing, supporting compliance standards such as GDPR and HIPAA via audit trails and access revocation. These tools integrate seamlessly with UEM for end-to-end visibility, allowing administrators to apply uniform security postures across productivity workflows. For mission-critical scenarios, the suite incorporates BlackBerry SecuSUITE, a military-grade solution for encrypted voice calls and text messaging on Android, , and Windows devices, certified for use by governments including U.S. Department of Defense approvals under the Unified Capabilities framework. SecuSUITE employs device-rooted and continuous to counter risks, distinguishing it from standard end-to-end protocols by incorporating sovereign data controls and compliance-ready logging. BlackBerry AtHoc adds crisis event management, enabling mass notifications and for enterprises facing disruptions, with recent 2025 certifications elevating it as the sole critical event software at heightened security levels for select operations. In early 2025, BlackBerry divested its AI-driven endpoint protection assets to refocus the suite on core secure communications and endpoint , streamlining operations amid resilient software demand. This shift has bolstered the portfolio's emphasis on integrated, low-latency solutions for operational resiliency, with Secure Communications contributing to overall software growth projections of $519–$541 million for fiscal 2026. The suite's architecture prioritizes kernel-level and hyperconnectivity, powering deployments in and U.S. federal systems as of October 2025.

Financial Overview

BlackBerry Limited, formerly Research In Motion, experienced rapid revenue growth in its early years driven by the adoption of BlackBerry devices and wireless email services, particularly among enterprise users and governments. Revenue expanded from approximately $221 million in fiscal 1999 to a peak of $19.9 billion in fiscal 2011 (year ended February 28, 2011), reflecting dominance in the secure mobile communications market with over 50% U.S. smartphone share at its height. Net income paralleled this trajectory, reaching $3.4 billion in fiscal 2011, up 47% from the prior year, supported by high-margin device sales and recurring service fees. The introduction of touchscreen smartphones by competitors, notably Apple's in 2007 and Android devices, eroded BlackBerry's market position, leading to a sharp revenue decline as consumer preferences shifted toward app ecosystems and multimedia capabilities that BlackBerry's keyboard-focused devices and struggled to match. Revenue fell to $18.4 billion in fiscal , $11.1 billion in , and continued contracting to $3.3 billion by fiscal 2015, with hardware sales plummeting from over 50 million units annually at peak to negligible levels by the mid-2010s. Profitability turned negative starting in fiscal , with sustained net losses through the decade, including multi-billion-dollar impairments from unsold inventory and delayed platform transitions to BlackBerry 10. Under CEO John Chen from late 2013, BlackBerry divested its hardware business, licensing the brand to partners, and refocused on software including QNX for automotive, Cylance cybersecurity, and enterprise mobility, which provided higher margins but lower volume. Revenue stabilized below $1 billion annually post-2016, fluctuating between $656 million (fiscal 2023) and $1.0 billion (fiscal 2020), with fiscal 2024 at $759 million and fiscal 2025 at $535 million amid economic pressures and segment shifts. Net losses persisted, such as $964 million in one year and $130 million in fiscal 2024, though recent quarters show narrowing deficits or breakeven, with net income of $15 million reported in fiscal 2022 before reverting to losses like -$79 million in fiscal 2025.
Fiscal Year (Ended Feb.)Revenue ($ millions USD)Net Income ($ millions USD)
201119,9073,400
201311,073Negative (losses began)
20162,160Negative
20201,040Negative
2023656Negative
2024759-130
2025535-79
This table highlights the post-peak contraction and ongoing challenges in achieving consistent profitability despite diversification.

Current Metrics and Investor Considerations

As of February 17, 2026, 's (NYSE: BB) closed at $3.42 per share, reflecting a of approximately $2.02 billion with around 590 million . The stock has exhibited significant volatility amid broader market fluctuations and company-specific developments in its software pivot. For the second quarter of fiscal year 2026 (ended August 31, 2025), reported total revenue of $129.6 million, a 3% increase year-over-year, surpassing analyst estimates of $122.06 million. BlackBerry's fiscal year 2026 covers March 1, 2025, to February 28, 2026, and is ongoing, with no full fiscal year 2026 earnings released yet; the latest full-year data available is for fiscal 2025, supplemented by recent quarterly results. The company has provided guidance for future profitability in recent reports. Non-GAAP reached $0.02, beating expectations, while the company achieved GAAP profitability, expanded adjusted EBITDA margins, and generated $3.4 million in net cash from operating activities—contrasting with prior-period cash usage of $16 million. Guidance for Q3 FY2026 anticipates revenue between $130 million and $138 million, with full-year FY2026 revenue projected at $519 million to $541 million, aligning closely with consensus estimates of $519.74 million. Investor considerations center on BlackBerry's transition from legacy hardware to high-margin, recurring-revenue software segments like for IoT and automotive applications, and cybersecurity solutions, which drove year-over-year IoT revenue growth of 13% in prior quarters. Opportunities arise from rising demand for secure communications and embedded systems in a threat-heavy environment, potentially supporting mid-single-digit compound annual growth in IoT revenues toward $300 million by FY2027. However, risks include execution challenges in scaling software adoption, intense competition from larger players in cybersecurity, and dependency on cyclical automotive and enterprise markets, which could amplify volatility given the firm's negative trailing price-to-earnings ratio reflective of historical losses. Analysts note that while recent positive cash flows signal stabilization, sustained profitability hinges on cost discipline and deal wins, with performance sensitive to guidance updates amid macroeconomic pressures.

Major Patent Disputes

One of BlackBerry Limited's most prominent patent disputes was with NTP Inc., initiated in November 2001 when NTP sued Research In Motion (RIM), BlackBerry's predecessor, alleging infringement of patents related to wireless email transmission technology originating from a 1991 U.S. Patent and Trademark Office filing. A Virginia federal jury found RIM liable for direct, induced, and contributory infringement across multiple claims in 2002, awarding NTP $5.6 million initially, though the case escalated with threats of an injunction that could have halted BlackBerry's U.S. operations, given the service's reliance on the disputed push-email system. The U.S. Patent and Trademark Office later reexamined and invalidated several NTP patents during the proceedings, highlighting validity concerns, but RIM settled in March 2006 for a $612.5 million lump-sum payment to secure a license and avoid further risk. In a defensive shift post its hardware peak, BlackBerry pursued offensive patent enforcement, notably suing Typo Products LLC in January 2014 for infringing a (U.S. Patent No. D677,775) covering its iconic physical keyboard layout, as Typo's iPhone accessory replicated the curved key arrangement and promoted it as evoking BlackBerry's "iconic" design. BlackBerry, under new CEO John Chen, emphasized the keyboard as core to its identity amid a pivot to software, securing a preliminary that halted Typo sales and leading to a June 2015 settlement barring Typo from producing infringing keyboards while allowing a redesigned version. BlackBerry further asserted its intellectual property portfolio in March 2018 by suing Inc., along with and subsidiaries, in the U.S. District Court for the Central District of , claiming infringement of nine s on secure messaging, , and push notification technologies derived from BlackBerry Messenger innovations. The suit targeted features enabling real-time communication in Facebook's apps, positioning BlackBerry as a licensor of legacy mobile tech amid its cybersecurity transition; a federal judge largely upheld the claims against motions to dismiss, though Facebook countered by challenging validity under stricter software eligibility standards. The parties reached a confidential global settlement in January 2021, resolving all assertions without disclosed terms, after which BlackBerry's shares rose approximately 20%.

Outcomes and Strategic Implications

The NTP v. Research In Motion (RIM) patent infringement suit, initiated in 2001, culminated in a $612.5 million settlement paid by RIM to NTP on March 3, 2006, averting a potential U.S. court that could have halted BlackBerry's service for millions of users. This resolution, following a federal jury's 2002 finding of on NTP's related to data transmission and a subsequent appeals process, preserved BlackBerry's operational continuity amid peak market adoption, though the payout strained RIM's finances at approximately 10% of its annual revenue. Strategically, the case underscored vulnerabilities in BlackBerry's IP defenses during rapid expansion, prompting enhanced filings and cross-licensing agreements to mitigate future existential risks from non-practicing entities (NPEs). Subsequent disputes, such as BlackBerry's 2018 lawsuit against (and affiliates including and ) alleging infringement of seven patents on messaging and notifications, settled confidentially on January 18, 2021, with BlackBerry's stock rising up to 20% on the announcement, signaling market validation of its IP value. Other resolutions included settlements with in 2015 over modem chip patents and in 2016 for network infrastructure technologies, often involving mutual cross-licenses rather than cash payments. These outcomes shifted BlackBerry's approach from defensive litigation to offensive , leveraging its approximately 40,000 global patents—accumulated from device-era innovations in secure communications and embedded systems—to generate licensing revenue, which reached $1.5 billion in fiscal 2020 and contributed to non-GAAP profitability amid hardware divestitures. The cumulative effect reinforced BlackBerry's pivot to an IP-centric model post-2013 device business decline, with sales like the $600 million portfolio transaction and a 2023 deal potentially yielding up to $900 million in royalties funding R&D in cybersecurity and IoT. This strategy mitigated cash burn—evident in fiscal 2024's $15 million quarterly licensing income—and positioned BlackBerry as a licensor to tech giants, though reliance on settlements exposes it to NPE challenges and valuation discounts in negotiations. Overall, these legal victories and accommodations have sustained BlackBerry's relevance in , converting historical IP assets into a diversified revenue stream less vulnerable to consumer market shifts.

Controversies

Service Outages and Reliability Issues

BlackBerry's centralized infrastructure for email and messaging services, reliant on core switches and servers managed by Research In Motion (RIM, now BlackBerry Limited), experienced several high-profile outages that disrupted service for millions of users worldwide. These incidents, often stemming from hardware failures or upgrades, underscored vulnerabilities in the company's architecture, which funneled global traffic through limited data centers rather than distributed systems common in competitors. A significant outage occurred on April 17-18, 2007, when email delivery delays and intermittent service affected users globally, though voice and functions remained operational; RIM attributed it to unspecified network issues impacting its approximately 8 million subscribers at the time. On , 2008, a three-hour service disruption struck , caused by a capacity upgrade to Internet Servers (BIS) that inadvertently led to failures; this marked the second major outage in under a year, leaving enterprise users without access and prompting criticism of RIM's . In December 2009, email services faced delays and intermittency across North and starting December 22, with phone and text unaffected; analysts noted this as damaging to BlackBerry's reputation for reliability, especially amid growing competition from devices with more resilient push-email alternatives. The most severe incident unfolded on October 10, 2011, beginning in , the , and before cascading to , , and by October 12, lasting up to four days for full resolution; a core switch failure in RIM's halted BlackBerry Messenger (BBM), , and other services for tens of millions, with backup processes exacerbating the downtime. Co-CEOs and issued apologies, acknowledging an "extremely critical" network core failure, but the event fueled user backlash and highlighted over-reliance on centralized servers vulnerable to single points of failure. These outages, while infrequent relative to BlackBerry's operational history, eroded trust in the platform's dependability for mission-critical communications, particularly in enterprise settings dependent on BlackBerry Enterprise Server (BES) for secure data routing; contemporaneous reports indicated that such disruptions amplified perceptions of systemic reliability gaps compared to decentralized mobile OS ecosystems. Post-2011, BlackBerry shifted focus to software and licensing, mitigating direct service outage risks, though legacy BES deployments occasionally faced carrier-related intermittency until broader platform sunsetting.

Encryption, Government Access, and Privacy Debates

In the early , Limited (then Research In Motion) faced intense scrutiny from several governments seeking greater access to its encrypted communications services, including Messenger (BBM) and enterprise email, amid concerns over and national security. The announced plans in August 2010 to suspend services starting October 11 unless the company provided authorities with the ability to monitor encrypted messages, citing the platform's operation beyond local regulatory oversight. Similarly, warned of service disruptions for over a million users if demands for interception capabilities were unmet, while issued a deadline of August 31, 2010, for compliance, linking the requests to suspected militant use of devices in the that killed 166 people. These demands highlighted tensions between 's , which routed data through Canadian servers, and sovereign interests in surveillance. BlackBerry resisted creating universal backdoors that could compromise global user , arguing such measures would undermine its core value proposition, but offered alternatives like localized servers for to specific governments without altering core protocols. In response to Indian pressure, the company eventually enabled carrier partners to provide message interception capabilities by , meeting local standards for monitoring consumer communications while maintaining that no broad decryption keys were shared. For other markets, BlackBerry emphasized compliance with valid legal orders, providing subscriber data, device information, and even decrypted content when required, as revealed in 2016 disclosures showing cooperation with to facilitate investigations. Canadian authorities, for instance, obtained a global decryption key for BlackBerry Enterprise Server communications during a 2010 Montreal probe, demonstrating the company's willingness to assist domestic agencies under warrant. These episodes fueled broader privacy debates, with critics arguing that BlackBerry's accommodations eroded user trust in its "secure" branding, potentially setting precedents for weakened encryption amid rising global surveillance norms. Proponents of access, including some security officials, contended that absolute encryption hindered counterterrorism efforts, as evidenced by suspicions around unmonitored BlackBerry use in attacks. BlackBerry's CEO John Chen affirmed in 2016 that encryption servers remained uncompromised but advocated "balanced" approaches incorporating lawful intercept features, distinguishing them from exploitable backdoors. The company positioned itself as prioritizing enterprise-grade security—evidenced by U.S. approvals for handling sensitive data—while navigating legal obligations, though insiders noted increasing challenges from advancing encryption outpacing interception tools. This stance drew mixed reactions: praise for resisting authoritarian overreach in markets like the UAE and Saudi Arabia, contrasted with concerns over selective compliance enabling potential abuse in less accountable regimes.

Other Criticisms Including Environmental Impact

BlackBerry's co-CEO structure under and fostered internal silos, distrust, and political infighting, contributing to strategic missteps during the company's decline. The dual leadership was criticized for lacking cohesive direction, exacerbating delays in product development and adaptation to market shifts like interfaces. In 2006, an internal review revealed over $250 million in stock option accounting errors, damaging the company's reputation and leading to regulatory scrutiny. More recently, shareholders expressed dissatisfaction with CEO John Chen's compensation package in 2021, with over 40% voting against it amid concerns over stock-based payouts during ongoing financial challenges. Critics have also faulted current management for inadequate execution in software security offerings, contributing to persistent market struggles. Labor-related controversies include a 2024 lawsuit by a former executive alleging , , and wage discrimination against CEO John Giamatteo, though U.S. courts dismissed several claims including the hostile environment and pay discrimination allegations. A filed in 2019 claimed BlackBerry wrongfully terminated employees by allowing partner to hire them directly, potentially circumventing severance obligations; the case advanced on key issues. The company has undergone repeated layoffs amid cost-cutting, including 200 positions in late 2023 and further reductions targeting an additional $50 million in annualized savings announced in February 2024. Regarding environmental impact, BlackBerry reported total carbon emissions of approximately 8 million kg CO2e in 2020, with Scope 1 at 2.48 million kg, Scope 2 at 3.61 million kg, and the remainder from Scope 3 activities. The company achieved carbon neutrality across Scope 1, 2, and material Scope 3 emissions, as announced in its sustainability initiatives. BlackBerry maintains programs for product , supply chain oversight, and corporate carbon reduction, aligning with UN on . Its environmental ESG risk score stands at 3.8 out of a higher-risk scale, indicating relatively low exposure compared to peers. No major controversies or external criticisms of these efforts were identified in public records.

References

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