Loneliness of 72m BlackBerry owners; Loss of cool can be devastating for a brand

August 28, 2013 5:15 pm

Loneliness of 72m BlackBerry owners

By Matthew Garrahan

Loss of cool can be devastating for a brand, writes Matthew Garrahan

Imet a friend for a drink in Los Angeles recently and put my phone on the bar while I paid. The barman bent over to look at it, examining it curiously. “Huh,” he said after a while. “I didn’t know people still used those.” “What is it?” A young woman leaned over to see. “This guy still has a BlackBerry,” he said, holding it up. She looked at it too, and then burst out laughing. In the age of the touchscreen phone, BlackBerry owners, as I have discovered, face public opprobrium similar to the hardy souls who drove Skoda cars in the 1980s, or who kept faith with Betamax video recorders long after they were supplanted by the VHS format. Our phone has in a relatively short time become a laughing stock, a byword for naffness – a relic for losers in an age of apps, quick mobile internet access and touchscreen keypads.Despite BlackBerry revamping its products – and its latest handsets receiving generally positive reviews – it has been left behind by its competitors, chiefly Apple’s iPhone and the multitude of Android handsets. Now we hear it is exploring “strategic alternatives” – essentially inviting buyers to put it out of its misery. As an FT headline put it last week: “Sometimes the best that a company can hope for is death”.

BlackBerry’s problems are legion. It was slow to embrace touchscreens, partly because the 72m or so BlackBerry owners (myself included) like the physical keypad and writing long emails on a touchscreen is devilishly difficult. But its app store is understocked and not particularly user friendly. Another problem is that older models, such as mine, struggle to run most apps.

But possibly the biggest issue facing it is that consumers no longer view it positively. It has lost its cachet and no amount of product rejigging will be able to restore it. BlackBerry is no longer cool.

Loss of cool can be devastating for a brand, particularly in an era when opinions can be shared instantly online with a vast, global audience. Think of MySpace, once the hottest social networking site around, used by the coolest bands lauded by its young audience and namechecked in films.

Within months, the perception of the site shifted irrevocably among young consumers. A hipper, easier to use social networking site – Facebook – had emerged: MySpace was clunky and slow-moving in comparison and, to make matters worse, it had been acquired by News Corp, a media conglomerate that had never been associated with cutting-edge fashion or trends. MySpace was no longer cool, its audience abandoned it in droves and it never recovered.

Sometimes external factors stop a brand being cool. A decade ago, gigantic gas-guzzling Hummer jeeps were the height of cool, popular among US drivers of a certain disposition. But growing concern about the environmental impact of vehicles such as Hummers – and a sharp increase in the cost of gasoline – brought the brand’s growth to a halt. Sales slumped, consumers moved towards more fuel-efficient vehicles and, in 2010, owner General Motors said it would wind down production.

Of course, some consumers think it is cool to be conspicuously uncool. A paperpublished last year about social media abstention by Laura Portwood-Stacer, of New York University, noted: “Media refusal is a way of making one’s everyday lifestyle into a site of resistance against the powerful, normative force of media consumer culture.”

But other consumers simply do not care if things are cool. About 2.5m households in the US still access the internet with an AOL dial-up connection, rather than broadband. Some of those people cannot afford to upgrade, others may be in rural areas where broadband is unavailable. Many are just happy to maintain the status quo, however, despite the glacial speed.

I include myself in this category with my BlackBerry. It has a touchscreen as well as a keypad, but the former often freezes. The mute button turns itself on mid-call and I regularly have to take the battery out and put it back in again to get emails to load. I know I should upgrade to a better-equipped phone but, like those people still getting their dial-up internet, I cannot quite summon the will to do it.

I’m sure I will replace my Blackberry one day, as it would be a pleasure to have a phone that works properly and allows me to waste more time browsing the internet and playing Angry Birds. No longer being an object of public derision would, of course, be an added bonus.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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