Do you remember BlackBerry? The most popular smartphone 20 years ago. Back in the mid-2000s, many people loved the BlackBerry's QWERTY keyboard and ability to receive email instantly.BlackBerry was once one of the most valuable companies in the world and the pride of Canada, the country where it was born. The company's stock price peaked at more than $140 in May 2008.
However, as consumers switched to iPhones over the next few years, BlackBerry's stock price plummeted. BlackBerry stock is currently trading at about $3.65. The market value has shrunk by more than 97% from its historical peak.
What exactly is the problem? At the time, BlackBerry's business was incredibly profitable. Competing with Apple would mean abandoning this successful model and could lead to a significant decline in revenue and profits.It is very difficult for a public company to completely transform. Shareholders don't want a shift either - they want steady growth in revenue, not wild swings and risky bets.
So BlackBerry stuck to its formula for the next few years, and by the time it had to change, it was already too late: everyone was already addicted to their iPhones, not their CrackBerries.
BlackBerrys were once called "CrackBerries." "CrackBerries" is a portmanteau of "crack" (slang for crack cocaine, a highly addictive drug) and "BlackBerry." The term became very popular in the mid-2000s when BlackBerry phones were most popular.
Apple may be in "BlackBerry moment"
Apple won the mobile phone revolution handily. Since May 2008, Apple's stock price has risen more than 3,000%, and its current market value reaches $3.33 trillion.
However, a new technological revolution has begun. Generative artificial intelligence is completely reshaping the industry, and some on Wall Street are worried that Apple may now be facing its own "BlackBerry moment."
The term "BlackBerry moment" comes from a new research report released on Friday by Dan Ives, a technology analyst at Wall Street investment bank Wedbush.
In this report, Ives changed his usual optimistic tone and issued a stern warning to Apple: to actively enter the field of artificial intelligence, otherwise it may become the next BlackBerry.
Ives said that while competitors such as OpenAI, Microsoft, Google, Meta and Amazon are far ahead in artificial intelligence innovation, Apple is "sitting on a park bench drinking lemonade" rather than actively competing.
Ives wrote that there are currently 2.4 billion iOS devices and 1.5 billion iPhones in circulation. Apple has an unparalleled platform advantage, but if it does not boldly enter the field of artificial intelligence, it may squander this lead.
Three suggestions
Ives made three suggestions on how Apple can avoid the same fate as BlackBerry.
Acquisition of Perplexity: This AI-based search engine startup could be the cornerstone of revitalizing Siri. Ives called Perplexity’s technology “one of the most impressive in the field of artificial intelligence.” He believes that the acquisition price of $30 billion is negligible compared to Apple's potential artificial intelligence monetization potential.
Bringing in artificial intelligence talent from outside: Ives said that Apple’s pace of innovation has stalled and recent product launches lack new ideas. He urged Apple to bring in outside leaders in artificial intelligence to restructure its executive team, warning that existing teams, including Tim Cook, were treading water.
Doubling down on Google’s Gemini: Despite regulatory pushback, Ives believes Apple must fully embrace Google’s Gemini AI chatbot in order to deeply integrate it into the iPhone ecosystem. He said that OpenAI is not a viable long-term partner and that Apple's time is running out to make a bet.