The smartphone king Apple killed is back, but not in your pocket

For much of the 2000s, BlackBerry was the defining smartphone brand. Its devices sat in the pockets of presidents, bankers, executives and government officials. Then came one of the most dramatic collapses in technology history. Apple’s iPhone changed consumer expectations, and then Android spread rapidly across price segments. BlackBerry’s once-dominant handset business unravelled with surprising speed.

A decade later, however, the Canadian company is attracting attention again. This time, it is not because of a new phone but because of software that runs inside cars, industrial systems, medical equipment and increasingly, robots. BlackBerry has completed one of the rare corporate turnarounds in the technology industry.

The rise of the BlackBerry empire


Before Apple entered the smartphone market in 2007, BlackBerry had a near-monopoly on secure mobile communications for business users. Its physical keyboard, push email service and encrypted messaging made it indispensable for corporate executives and government officials.

The company, then known as Research In Motion, built an ecosystem around productivity rather than entertainment. While rival handset makers competed on hardware specifications, BlackBerry sold efficiency. Its devices became status symbols in boardrooms and political circles. The famous blinking notification light and tactile keyboard were features users considered essential.

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At its peak, BlackBerry was one of the world's most influential technology companies. Its products shaped how people thought about mobile communication long before the modern app economy emerged.

How Apple and Android destroyed BlackBerry’s advantage

BlackBerry’s decline was not caused by a single mistake. It was the result of a technological shift that the company failed to anticipate. When Apple launched the iPhone in 2007, it redefined the smartphone as a pocket computer rather than a mobile email terminal. The touchscreen became the centrepiece. Web browsing improved dramatically. Developers gained access to a fast-growing application ecosystem.

BlackBerry initially underestimated the importance of these changes. Its leadership believed business users would continue to prefer physical keyboards and secure messaging. The company responded with touchscreen products, but they often felt like compromises rather than genuine competitors to the iPhone.

The arrival of Android made the situation worse. Google’s operating system allowed numerous manufacturers to compete simultaneously. Samsung, HTC, Motorola and others flooded the market with devices at multiple price points. Consumers suddenly had access to smartphones that offered large screens, sophisticated applications and rapidly improving performance.

BlackBerry got trapped between two powerful ecosystems. Apple dominated the premium segment while Android captured scale. Developers increasingly ignored BlackBerry’s platform because customers were migrating elsewhere. Once application availability became a deciding factor for buyers, the company’s position deteriorated rapidly.

The decline was swift and market share collapsed. Multiple operating-system transitions failed to reverse the trend. BlackBerry eventually stopped designing its own smartphones and exited the handset business altogether in 2016.

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The hidden asset that survived

What disappeared from consumers’ pockets did not disappear from the company. One of BlackBerry’s most important assets was QNX, a software platform it had acquired in 2010. Unlike smartphone operating systems, QNX was designed for environments where reliability and safety are critical.

Automakers adopted QNX for infotainment systems and vehicle controls. Medical device manufacturers used it in equipment where software failure could have serious consequences. Industrial operators deployed it in systems requiring high levels of stability and security. For years, this business attracted little public attention because it was largely invisible to consumers. But it became the foundation of BlackBerry’s survival.

The company now derives much of its value from software embedded in vehicles, government systems and other critical infrastructure. The publication portrayed BlackBerry as a rare example of a technology company that successfully escaped dependence on a failed consumer business and built a sustainable enterprise software operation.

The turnaround under John Giamatteo

BlackBerry’s current revival is closely associated with CEO John Giamatteo, who took over in late 2023. Under his leadership, the company simplified its structure and focused on two principal businesses -- QNX and secure communications software. The strategy was rather than trying to revive a consumer brand, BlackBerry would concentrate on markets where security, reliability and certification create barriers to entry.

The results have become increasingly visible. Reuters reported earlier this year that BlackBerry declared its turnaround complete after issuing stronger revenue forecasts and delivering growth in both major divisions. The company pointed to rising demand for QNX software and secure communications products used by governments and regulated industries. Reuters also noted that BlackBerry returned to a positive cash position, a milestone that had eluded it for years.

Investors too have taken notice. The company’s share price has risen sharply over the past year, helped by stronger earnings and improved confidence in its long-term prospects. BlackBerry’s market value has rebounded significantly as investors reassess the company as a software and infrastructure provider rather than a former phone maker.

Why QNX matters so much

The strongest pillar of BlackBerry’s business today is the automotive sector. QNX software is embedded in hundreds of millions of vehicles worldwide. BlackBerry’s technology is being used in systems ranging from infotainment and vehicle controls to advanced driver-assistance functions. The company has accumulated a large royalty backlog that is expected to generate revenue over several years.

Automobiles are becoming increasingly software-driven. As vehicles gain more autonomous capabilities, manufacturers require operating systems that can meet stringent safety standards. BlackBerry believes this trend plays directly to QNX’s strengths. According to CEO Giamatteo, the company sees growing demand from the next generation of software-defined vehicles, where software updates and digital features become as important as mechanical engineering.

The new growth story: Robotics and physical AI

The latest wave of interest in BlackBerry comes from a sector that barely featured in discussions about the company a few years ago, robotics. As per Giamatteo, robotics has become one of the fastest-growing segments within the QNX ecosystem. He pointed specifically to warehouse automation, robotic forklifts, medical robotics and industrial systems rather than humanoid robots.

The logic is similar to the automotive business. Robots operating in factories, warehouses or hospitals require software that is secure, reliable and capable of meeting strict safety requirements. BlackBerry believes its expertise in safety-critical systems gives it a competitive advantage. The company has also expanded collaborations involving Nvidia technologies in robotics, medical applications and industrial automation. Analysts following the company increasingly view these markets as potential long-term growth drivers beyond the automotive sector.

Why analysts are paying attention to BlackBerry again

The renewed interest in BlackBerry is not driven by nostalgia for its phones but by the belief that the company occupies valuable positions in markets that are growing. Analysts cited by Reuters have focused on three developments. First, QNX revenue continues to expand. Second, the company has accumulated a substantial royalty backlog that provides visibility into future earnings. Third, BlackBerry operates in specialised markets where certification and security requirements make competition difficult.

Unlike consumer technology markets, where products can become obsolete within a few years, automotive and industrial software often remains embedded for long periods. Once a platform is certified and integrated, customers are reluctant to replace it. That dynamic creates recurring revenue opportunities that investors generally value more highly than cyclical hardware sales.

Can BlackBerry stay relevant this time?

The challenge for BlackBerry is different from the one it faced during the smartphone era. Back then, success depended on winning consumer preference. Today, success depends on remaining essential infrastructure. Automakers, industrial companies, hospitals and governments care less about branding and more about reliability.

The company no longer needs to dominate a mass-market category to succeed. Instead, it needs to maintain its position in specialised software markets where safety, security and certification matter.

The company that once defined the smartphone age is now attempting to become a foundational software provider for machines that most consumers will never see, the industrial robots. Whether that strategy ultimately delivers sustained growth remains to be seen. But unlike the final years of its handset business, BlackBerry is again operating in markets where it has a clear technological edge and a credible path to expansion.