Blackberry Passport: Is Squareness Enough?

Posted by in Competition

passport_white_desk_press-740x400

It was the first smartphone to feature a Internet-based PIN instant messenger. And it was the device that put businessmen in awe when its small red lamp blinked, notifying an incoming email. But when Apple released its iPhone and began to dominate the smartphone market; Blackberry struggled to keep its relevance.

Last Wednesday (24/9), Blackberry is again a trendsetter – or at least, trying to be one. CEO John Chen released the Canadian company’s newest smartphone: the Blackberry Passport.  The device caught my eye because it does not look anything close to a traditional Blackberry smartphone.

Weird or Wonderful

While Wall Street Journal’s Joanna Stem writes in her review that “the bulky, awkward design and the unfamiliar keyboard make it [The Passport] hard to justify finding space for it in a pocket or bag”, I believe there’s something wonderful about the device. Just look at the square-shaped screen and touch-sensitive keyboard.

It is different.

Blackberry is fighting for its life, and this device might just be its last chance for a comeback. But does the Passport’s point of difference offer a value proposition that is unique and relevant to its customers?

A Niche Market

It is true that the glory days of Blackberry are over. It is also true when Mr. Chen said, “I need to base our recapturing of the enterprise customers for this company to get back on track, financially”. With Apple and Samsung already taking a large pie of the smartphone market, Blackberry made the right decision to position itself in a niche market. Targeting enterprise customers is their way of unlocking the perceptions of business customers on a device focused on nothing more than work.

The Way Forward

Where do we go from the weird design and niche market? The launch of the Passport must now be met with sales that translate into business growth, not reviews that simply build anticipation. The return of the large QWERTY keyboard reminds me of Blackberry’s past glory days. Now, Blackberry’s job is to continue framing the Passport in the niche market segment– and to stay committed to designing devices for corporate customers.

Even as the Passport sold out online since its release, the 200,000 order might simply be driven by impulsive purchases of early adopters.

The bottom line: there is a lot more work for Blackberry than releasing a square phone.

 

More related to this blog post: As published in The Globe and Mail, analysts believe Passport sales are working towards Blackberry’s returning to its growth trajectory, although some doubt that enterprise customers will upgrade to the Passport.