The Phone Everyone Important Carried

In the late 2000s, a BlackBerry was a status symbol. Executives, politicians and bankers couldn't put them down, earning the nickname "CrackBerry." Its secure email and physical keyboard made it the business phone.

Within a few years, BlackBerry's share of smartphone sales collapsed. In 2016, the company stopped designing its own phones. By January 2022, its classic phones lost service entirely. How did the leader fall so fast?

🎯 Quick Answer (30-Second Read)

  • Peak: around 20% of global smartphone sales in 2009 (Gartner), and a far larger share in the US business market.
  • The iPhone (2007) and Android (2008) redefined the phone as a touchscreen computer for consumers, with app stores.
  • BlackBerry bet on keyboards, email and enterprise security, and was slow to accept the shift.
  • BlackBerry 10 arrived in 2013, years late, with too few apps.
  • 2016: BlackBerry stopped designing phones and licensed its brand. January 2022: legacy BlackBerry OS services shut down.
  • Today: a software company focused on cybersecurity and QNX, embedded software used in cars.

The Timeline

timeline title BlackBerry's rise and fall 1999 : First BlackBerry email pager 2003 : Smartphones with phone + email 2007 : iPhone launches 2008 : Android and the App Store arrive 2009 : Peak, about 20% global smartphone share 2013 : BlackBerry 10 launches (late) 2016 : Stops designing its own phones 2022 : Legacy BlackBerry OS services end (January)

Why BlackBerry Won

Push email
Email arrived on your phone instantly, years before that was normal.
Security
Its server-based architecture let IT departments control and secure devices. Governments trusted it.
Efficiency
Compressed data and long battery life on slow, expensive networks. BBM became a social network of its own.

Why BlackBerry Lost

1. It Misread What the iPhone Was

BlackBerry saw the iPhone as a weak business phone: poor battery, no keyboard, a heavy data user. It was right on those points and wrong on what mattered. The iPhone was a pocket computer for consumers, and consumers, not IT departments, were about to choose phones.

2. Apps Became the Platform

flowchart LR U["More users"] --> D["More developers
build apps"] D --> A["Better app store"] A --> U BB["BlackBerry:
few apps"] -.->|"fewer reasons
to choose it"| X["Users leave"]

The App Store (2008) and Google Play created a two-sided network effect: users attract developers, and apps attract users. Once iOS and Android led, developers had little reason to build for BlackBerry, and the gap widened every year. (See Network Effects Explained.)

3. Bring Your Own Device

Employees wanted to use their own iPhones and Android phones at work. Companies adopted "bring your own device" policies, and BlackBerry's lock on corporate buyers weakened.

4. A Late, Painful Transition

BlackBerry's old operating system wasn't built for modern touchscreen apps. It acquired QNX in 2010 to build a new platform, but BlackBerry 10 launched only in 2013. By then, iOS and Android dominated, and BB10 never attracted enough apps or buyers.

Key takeaway: BlackBerry optimised for the buyer it had (IT departments) while the market shifted to a new buyer (consumers) who valued different things (apps, touchscreens, browsing). Being excellent at the old game didn't help in the new one.

Where the Share Went

Period What happened
2009 BlackBerry ~20% of global smartphone sales (Gartner), second to Nokia
2010 Android's rapid growth pushes BlackBerry share down
2010–2014 Steady decline, quarter after quarter
2016 Exits phone design; brand licensed to other manufacturers
2017 Gartner reports BlackBerry's share at effectively 0%

The Second Act

BlackBerry didn't disappear. It became a software company:

  • Cybersecurity for enterprises and governments
  • QNX, an operating system used in car systems and other embedded devices, which became one of its most valuable assets

Lessons for Builders

  • Watch for shifts in who the buyer is, not just what competitors build
  • Platforms beat products when network effects kick in
  • Strengths can become blind spots: the keyboard and email advantage made it easy to dismiss touchscreens
  • Late is often the same as never in fast-moving markets
  • Assets can outlive a product: QNX and security expertise gave BlackBerry a second life

Frequently Asked Questions

Why did BlackBerry fail?

BlackBerry focused on business email, physical keyboards and enterprise security while the iPhone and Android shifted smartphones towards consumers, touchscreens and app stores. Its new BlackBerry 10 platform arrived in 2013, too late to attract enough apps and users.

Does BlackBerry still exist?

Yes, as a software company. It stopped designing phones in 2016 and ended legacy BlackBerry OS services in January 2022. It now focuses on cybersecurity and QNX, embedded software widely used in vehicles.

What was BlackBerry's peak market share?

Gartner data put BlackBerry at roughly 20% of global smartphone sales in 2009, second only to Nokia. In the US, it held a much larger share of the smartphone market around that time, especially among business users.

Conclusion

BlackBerry ruled when phones were bought by IT departments for email and security. The iPhone and Android changed the buyer, the product and the platform economics all at once, and BlackBerry's response came years too late. Its survival as a security and QNX software company shows that a company can outlive the product that made it famous.

Sources

Last verified: 2 November 2026.

Related reads: What Happened to Vine? · Network Effects Explained · Why Tech Companies Build the Same Features

I write about why tech products win and lose. Follow on LinkedIn or X, or invite me to speak.