Do you remember the blackberries? If you're under 30, you probably think I'm talking about fruit.
no. BlackBerry was a much more popular smartphone 20 years ago. Back in the mid-2000s, everyone liked it using that QWERTY keyboard and was able to receive an email right away. Gasp!
They were actually really cool. I love mine and was slow to replace it with a new device called an Apple iPhone. You may have heard of this!
Blackberry is the world's most valuable company, Canada's pride and founded. The stock peaked at over $140 in May 2008, then fell sharply as consumers adopted the iPhone and adopted it for several years. BlackBerry has recently stakes trading for around $3.65. It's a destruction of grand value of over 97%.
What was that wrong? BlackBerry had an incredibly useful existing business. Competition with Apple would have meant throwing this formula away to crater success and perhaps revenue and revenue. It is very difficult for public companies to pivot fundamentally like this. Shareholders don't like it – they want a steadily growing income, not a wild shaking or a big risky bet.
So Blackberry stuck to guns for several years, and by the time I had it It was too late to change. Everyone is already obsessed with iPhones rather than “crackberry” (previously called Blackberry).
Apple has won the mobile revolution. Its stock has risen more than 3,000% since May 2008 and is now worth $3.33 trillion.
However, a new technological revolution is beginning. Generic artificial intelligence is reshaping the industry in radical ways, and there is concern among some people on Wall Street that Apple may now face its own “Blackberry Moment.”
The catchy phrase came in the title of a new research note on Friday by Dan Ives, a tech analyst at Wedbush Securities.
In an astonishing departure from his typical bullish tone, Ives issued a harsh warning to Apple: to move aggressively into AI or risk becoming the next BlackBerry.
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Rivals like Openai, Microsoft, Google, Meta and Amazon are moving ahead with AI Innovation, but Ives said Apple is “drinking lemonade and drinking lemonade” rather than taking part in the race.
With 2.4 billion iOS devices and 1.5 billion iPhones in circulation, the company has an unparalleled platform, but risks wasting leads without bold AI play, Ives writes.
Analysts outlined three strategic orders for Apple to avoid BlackBerry moments.
- Gain confusion: AI-Native Search Engine startups can serve as the basis for activated Siri. Called Perplexity's technology, Ives, called “some of the most impressive things in the AI world,” claimed the $30 billion acquisition would be a small price compared to Apple's potential AI monetization. (They are “unaware of the confusing M&A discussion,” a startup spokesperson said.
- Bringing AI talent from outside: Apple's pace of innovation is stagnating, Ives said, comparing the recent release of its product with a rerun of “Back to the Future.” He urged Apple to rock executives with AI leaders and warned them that current teams, including Tim Cook, are running.
- Double Down Google's Gemini: Despite regulatory headwinds, Ives believes Apple must fully embrace Google's Gemini AI chatbot in order to integrate deeply into the iPhone ecosystem. Openai is not a viable long-term partner, he says, and there's run out of time for Apple to place bets.
When Apple's fanboys get mad at their beloved company, it's time to pay close attention.
The message is clear. Cupertino must stop looking at AI parties from afar and start guiding them. (I asked Apple to comment on all of this on Friday. It didn't respond.)
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