BlackBerry Sucks and Death to the Cell Phone Business Model

I want to first start out by venting my frustration with my BlackBerry Tour that I purchased less than 6 months ago. Every single person that I know who has a BlackBerry has had problems with it. Either the trackball breaks, the keys stop working properly, the phone randomly crashes, the phone gets wiped out during upgrades, and or some combination of these problems (and others).

My trackball first showed signs of not working properly within 2 months of getting my phone. As the weeks wore on, it got harder and harder to use. Eventually I got fed up with it and called Verizon. They shipped out a new BlackBerry Tour for me. I restored my backup onto my new device, and when I went to upgrade the phone, everything got deleted. And the BlackBerry software on my computer stopped working. Long story short: after spending a good chunk of my day doing multiple uninstalls-installs, restoring data, and updating everything, I finally got my replacement phone working again. Even with my insane amount of optimism, I am confident that my new device will break down or cause me a headache shortly.

Now on to the business model of cell phones. Right now, in the USA, cell phones are mainly sold through a razor blade model. The carrier gives away the phone (or heavily subsidizes it) and in return, you sign a long term contract with heavy termination fees. And many devices are only available on certain carriers — the perfect example being the iPhone on AT&T. I expect and hope that this model will be disrupted shortly. What we need is more competition between carriers and device manufacturers — no more exclusive contracts on devices or forcing people to sign long term contracts. Competition breeds innovation and lowers prices. I want to be able to buy any phone and use it on any carrier with no contracts required. Some important highlights:

I am hopeful that such developments are the start of a longer term trend where consumers are given more options in devices and carriers become commoditized.

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About Boris M. Silver

Entrepreneur
This entry was posted in business, iphone, Mobile, technology and tagged , , . Bookmark the permalink.

6 Responses to BlackBerry Sucks and Death to the Cell Phone Business Model

  1. Alex says:

    Good luck on this prediction, lol.

    The actual problem is that phones cost a lot more than people are willing to pay for them. The iPhone’s actual price is $600-$700, most blackberry’s can be had unlocked in Europe but cost over $500.

    The truth is the vast majority of people prefer to get their phones free and then pay twice or three times that amount on phone calls, but over the course of one or two years.

    This is because the phone is now a commodity, to be used and thrown away if it breaks or a new model comes out, just like you did with your blackberry.

    • Boris M. Silver says:

      Prices for phone production will only fall over time, much like the computer. What we need is increased competition between carriers and a more open mobile world. Basically a shift in power away from the carriers.

  2. timinhouston says:

    In a downturned economy to pissout such plastique chinese garbage 8530 and hide it in a box. Thank you blackberry for holding me hostage . I can’t stand this phone. I’m embarrased I even bought a blackberry. I have had too man problems that makes this too disfunctional. To consider keeping it. So for christmas instead of a fruitcake ill give the person I least like this cheap phone u sold me. I me for the money I feel was stolen. -fastest battery puller. I really would relish riM going out of business

  3. pissed says:

    I hate my blackberry so much this phone has wasted a good amount of my precious time in which ill never get back i hope the word get out so no one buy any blackberry phone shlt sometimes i get so fin pissed i want to shoot myself

  4. Amen. My phone sucked. I went through about a dozen BB Curves in under a year. I couldn’t wait to get away from that stupid phone.

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