How BlackBerry moved from iconic cellphones to cybersecurity
BlackBerry was as soon as on the high of the smartphone market within the U.S. In 2010, nearly half of smartphone subscribers within the U.S. used BlackBerrys, in response to Comscore.
The telephones had been well-known for having a tactile keyboard and for BlackBerry’s superior cybersecurity — typically favored amongst companies and governments.
However after its telephones fell out of favor with customers, BlackBerry altered its course, taking a few of the cornerstones of the enterprise with it.
“After a number of years, we realized that we might by no means get the quantity up — and it is a quantity sport,” mentioned John Chen, CEO of BlackBerry. “And so we made that pivotal shift to a software-only firm and deal with safety and cyber and issues of that kind.”
Whereas it stopped manufacturing telephones, it did not go removed from the trade.
“Presently, BlackBerry has two primary enterprise items, a cybersecurity enterprise unit and an IoT enterprise unit throughout the cybersecurity enterprise unit,” mentioned Charles Eagen, chief expertise officer of BlackBerry.
Its cybersecurity unit focuses on securing issues equivalent to smartphone functions and cell banking web sites. Its web of issues unit focuses on the communication of expertise inside related and autonomous automobiles.
“We now have the lion’s share of embedded software program in many of the automobiles,” Chen mentioned.
BlackBerry’s expertise is in roughly 215 million automobiles and this facet of BlackBerry is continuous to develop, in response to the corporate.
“If we take a look at the trade alternative itself, it is our expectation that the auto software program trade goes to roughly triple in measurement from 2020 by way of 2030,” mentioned Luke Junk, senior analyst at Baird.
Nonetheless, BlackBerry does face competitors within the cybersecurity trade, and in 2021 its income from cybersecurity was $500 million.
“I believe that the corporate can attain seemingly a decrease peak than we have seen prior to now however a extra sustainable progress trajectory and probably extra worthwhile future as properly on a margin share foundation,” Junk mentioned.
CNBC visited BlackBerry’s Autonomous Car Innovation Middle and interviewed Chen to seek out out what’s subsequent for the corporate.
Watch the video to be taught extra.