BlackBerry iPhone Launch Dismissal
Market Context & Analysis
Starting Price: $65.00Apple announces revolutionary iPhone with touchscreen and no physical keyboard. BlackBerry CEO Jim Balsillie dismisses it as not enterprise-ready, lacking keyboard. BlackBerry dominates corporate email with 50% smartphone market share. Investors initially agree—BlackBerry stock actually rises as enterprise customers remain loyal.
Strong pre-recession economy. Smartphone market small but growing rapidly. Enterprise IT spending healthy. Mobile email revolutionary for business.
No major political factors. Some government security requirements favor BlackBerry's encryption.
BlackBerry Messenger (BBM) creating network effects. Physical keyboard considered essential for productivity. Enterprise customers locked in by IT departments. Consumer market not BlackBerry's focus.
BlackBerry dominates enterprise—iPhone seen as consumer toy. Physical keyboard believed necessary. Touch typing considered impossible. Network effects protecting BlackBerry.
- iPhone lacks physical keyboard—seen as critical flaw
- Enterprise customers loyal to BlackBerry
- IT departments control purchases—consumer preferences irrelevant
- BBM creating strong network effects
- Security and encryption BlackBerry strengths
- iPhone initially expensive and AT&T exclusive
- Touch typing unproven technology