The story of how and why BlackBerry collapsed in record time

It was Canada’s most valuable company. It dominated corporate telephony with an iron fist, to the point where it seemed impossible to work without its devices. Executives, governments, and large companies relied on them daily. And yet, BlackBerry collapsed in record time, disappearing from the map. There was no way to revive it.

We are talking about RIM (Research In Motion), although the world remembers it by the name of its flagship product: BlackBerry. If you are not part of Generation Z, you will remember those smartphones with physical keyboards that became a symbol of productivity, modernity, and professional status.

From Absolute Leader to “CrackBerry”

The Birth of a Corporate Addiction

In the early 2000s, when the iPhone did not yet exist and the market was dominated by Nokia and Palm PDAs, Mike Lazaridis and Jim Balsillie introduced a key innovation: an integrated physical keyboard and, above all, a data plan linked to the device.

BlackBerry enabled something revolutionary at the time: being constantly connected to email. Although it worked on 2G networks, it was enough to change the way people worked. The result was an overwhelming success.

The dependency was such that users could not separate from the device. Hence the term “CrackBerry”, a play on words comparing its compulsive use to an addiction. The corporate market was captivated… but the world was about to change.

The Turning Point: Ignoring the Consumer

The iPhone and Android: The Mistake That Changed Everything

In 2007, the iPhone arrived. Soon after, Android. BlackBerry made a mistake shared by other brands—but it paid more dearly: it thought they were just phones.

The company relied on its physical keyboard to beat touchscreen devices, underestimated the power of design, ignored the potential of app stores, and clung to a proprietary operating system. When it reacted, it did so late and poorly, with uncompetitive devices such as the BlackBerry Torch.

Android expanded unprecedentedly, while BlackBerry remained closed to integration. BB10 arrived too late and without sufficient support from developers or users.

Strategic Decisions That Accelerated the Failure

Mistakes That Destroyed Competitive Advantage

1. The BlackBerry PlayBook Disaster

An expensive, poorly designed tablet with no clear market and absurd dependencies, like the mandatory connection to a phone. It was an immediate failure that eroded investor and shareholder confidence.

2. Charging for Email

BlackBerry believed its “ultra-secure” email would justify a premium. But the market showed that users were unwilling to pay for something others offered for free with only a few seconds’ difference. Extreme security interested very few.

3. Out-of-Market Design and Features

It was not until 2013 that a truly attractive device was launched: the Z10. It arrived six years late, with inferior specifications, unoriginal design, and a price fit for market leaders… when it was no longer one.

4. Dependence on Carriers

BlackBerry relied entirely on its relationship with operators and neglected consumer marketing. While Apple and Samsung captured the end-user market, BlackBerry continued speaking only to enterprises and carriers.

Corporate Culture and Ego: The Invisible Enemy

Success acted like a drug. The dominant position generated ego, slowness, and resistance to change. Decisions were delayed, strategic vision fragmented, and the company reacted instead of leading.

This cultural collapse was so deep that it inspired the book Losing the Signal, later adapted into a movie showing how a company can lose its way when it confuses past success with future invulnerability.

Business Lessons from BlackBerry

  1. Success does not protect against failure.
  2. Ignoring the consumer is lethal.
  3. Innovating too late is equivalent to not innovating.
  4. Corporate culture can sink a company.
  5. The market changes faster than organizations.

ENEB: Learning from Mistakes Before Making Them

At ENEB, we analyze cases like BlackBerry to train leaders capable of anticipating change, making strategic decisions, and avoiding mistakes that have destroyed multi-million dollar companies.

Our programs are designed to develop vision, critical thinking, and adaptive leadership in an increasingly volatile business environment.

BlackBerry did not disappear due to a lack of technology or resources, but due to a lack of adaptation. It was a victim of its own success and an inability to evolve with the market.

Its story is a clear warning: no company is safe from failure if it stops questioning itself. For more cases of companies that were once successful but failed, we encourage you to read the Yahoo Case Study.