Apple should buy BlackBerry and sell lower-priced iOS-powered phones and tablets under the BlackBerry brand

By SteveJack

For as long as Apple has been Apple there have been calls for the company to make “affordable products.” By this, most mean lower price tags. They’re not talking value or Total Cost of Ownership (TCO). When you bring those ideas into the discussion, Apple’s prices are very low indeed. No, this is all about price tags. People want Apple to sell products for less, so that more people can use them and – side benefit – it hurts those ripping off Apple’s intellectual property to produce cut-rate facsimiles of Apple’s innovations. Android, I’m looking at you.

One major problem: Offering low priced products is, as Apple’s leadership likes to say, “not part of Apple’s DNA.” This is a nice way of saying: We can’t dominate entire markets (outside of the fluke iPod/iTunes Store) because it would irrecoverably damage the Apple brand or as Steve Jobs once said, “We can’t do it; we just can’t ship junk.” More recently, this has been parroted by Tim Cook: “There’s always a large junk part of the market. We’re not in the junk business.”

I have a solution that satisfies everyone: Buy an established brand (on the cheap, no less) and design and market products for mid-tier consumers. There are other possibilities – other brands, creating your own (quite expensive) – but the BlackBerry brand would fit the bill quite nicely. No sense letting a widely-known brand just whiter away to nothing.

What would happen if Apple bought the BlackBerry brand and soon after, this new BlackBerry announced two products to start: A brand new 5-inch BlackBerry smartphone and a brand new 7.9-inch BlackBerry tablet, both of which are powered by Apple A-series processors, run iOS 7, and connect to the App Store (or the “BlackBerry App Store” which just so happens to mirror exactly what’s in Apple’s App Store)? Remember now, these aren’t junky products we’re talking about, these will be quality mid-tier Jony Ive-designed products. They will offer quality components and excellent build quality, they just won’t be the very latest, highest-end stuff. BlackBerry will be the best of the mid-tier, not at all low-end. (Bold emphasis added following initial comments below.)

Here’s what I think would happen: Apple iPhones and iPads would continue to own the high-end smartphone and tablet markets. BlackBerry smartphones and tablets would crush Android in the highly-profitable mid-tier (the low-end can keep buying junk). Apple would, of course, keep all of the money (instead of watching Samsung bank all of that non-Apple revenue using products based on Apple’s IP). iOS market share would rapidly overtake Android; first in the U.S. and then quickly spread elsewhere around the developed world. Even though the mid-tier BlackBerry users wouldn’t buy as many apps, patronize as many ads, spend as much money on services, etc. as Apple user, they would be iOS users. This would only make developers even more enthusiastic about developing for iOS. Many would lose interest in Android rather quickly. Android et al. would be relegated to the low-end. Google would be sucking fumes in mobile advertising. iAd would dominate. Plus, all of these new BlackBerry users would be far more primed to graduate to Apple devices next than even the Android settlers are now.

Mini Cooper has worked very nicely for BMW. BlackBerry could work even better for Apple.

Apple should buy BlackBerry for the brand and use it to preserve the Apple’s brand cachet while hitting Android and Samsung where it hurts, relegating Google’s wannabe OS and Samsung’s wannabe devices to the junk liquidation warehouses where they belong.

SteveJack is a long-time Macintosh user, former web designer, multimedia producer and a regular contributor to the MacDailyNews Opinion section.

97 Comments

    1. Apple on-shore CPU/LCD Fab Plant, if you want to spend 4-10 billion. Or bring back 15 billion and pay 5 billion in taxes and build that fab plant. (Note the avg. American pays 20% to 35% in taxes anyway). Do anything except give money to Icahn or buy Blackberry.

    1. I agree. Stevejack is usually spot on but…..”People want Apple to sell products for less, so that more people can use them and – side benefit – it hurts those ripping off Apple’s intellectual property to produce cut-rate facsimiles of Apple’s innovations. Android, I’m looking at you.” means selling cheap stuff.

      You cannot make an iPhone and sell it for less than what it costs for parts, build, design, shipping, stores, planning, etc costs. All those costs come into play not just the parts.

      Sure, its nice when costs come down a year after its new, but that is accounting for lower costs of parts and operation. (PS, do not forget about the Billions it costs Apple for the factory special parts it buys and ships to the plants)).

      Just saying.

    1. Did you not read this at all? I mean, it even used an automobile industry example to support the premise! A lot of high-end carmakers own lower-end brands as well, so they can rake in profits from the mid- and low-tier buyers while still keeping the prestige of their main top-tier brand.

      I’m not saying Apple should do it, but I am saying you shouldn’t spout off an ignorant, poorly-formed critique when the article already gives working examples of what you’re using to debunk it.

      1. Oh well if it used an auto industry example then it must be right. No, thats not correct. In fact its a bad example.
        The auto industry in the USA is a pile of debt and bad design and it still can’t produce decent long-lasting low consumption vehicles without partnering with the Japanese.
        Blackberry has no good software, they don’t have a good set of hardware and they are falling fast in market share.
        ‘No sense letting a widely-known brand just wither away to nothing.’ Er, YES there is if its junk.
        Forget Blackberry – just another Canadian company that thought it owned the world until the iPod and then the iPhone came along.
        Hubris (still in evidence there) and general stupidity and poor analysis. Thats RIM for you.
        They talk about the touchscreen like it was the only reason they screwed up.
        Not the case.
        The touchscreen from Apple allowed ANY keyboard to be displayed, any web page, any document.
        Plus the built-in iPod and the App store and all the other advantages of a company that has decades of experience at the highest level.
        Very stupid article – in fact its another example of MDN’s hit-whoring to keep the advertising dollars flowing.
        I tire of this site and its lack of UTILITY, and the foolish comments and lousy articles it links to…

        1. I’m sorry, I didn’t realize that Bayerische Motoren Werke AG was an American automobile maker. How is BMW, and the success of the MINI brand that it owns, a bad example to support the author’s point?

          And did I say that Apple should buy BBRY? No. I’ve been against it every time someone’s brought it up. But I also can’t stand when ignoramuses like yourself get their panties in a bunch because you can’t read or follow a logical argument.

          You don’t like MDN? Nobody’s forcing you to come to this site.

  1. I thought my idea of Apple creating a Appsung brand for cheap crud like the stuff Samsung likes to push out was pretty ridiculous until I read this one.

    I mean this not only makes no sense but it actually costs money.

      1. SteveJack deserves high criticism for this article.

        SteveJack wasn’t alone in his prediction of what iPhone should be. Did SteveJack predict the new Mac Pro, the iPad, the Apple TV, and such? They’ve all come since 2002.

        A successful prediction in 2002 does not mean that this article isn’t terrible. I mean, his prediction was over 4 years too early. Will you give Gene Munster the credit same credit you’re giving SteveJack if Apple ever releases a TV set?

  2. Sometimes I respect SteveJack’s commentary – but this is just pointless. Apple could save a bundle by not buying BBerry and sell crap under another name for a lot less money. The blackberry brand – as a brand only, is not worth billions. They could call the new company Blueberry and it would sell as well.

  3. Huh? I have higher expectations of this author.

    A piece of junk is still a piece of junk, no matter what name is on it. Same reason Tiffany&Co doesn’t own a subsidiary that sells costume jewelry in the middle of the mall. Your Mini Cooper metaphor is poor also. A Mini Cooper is still a well built vehicle. It is priced lower than a BMW because it is a smaller vehicle without the need for BMW performance. But the fit and finish is not cheap by car standards.

    Consumers have the cell phone expense equation backwards. The service is expensive, not the device. With a new/renewed contract an iPhone is virtually free when you factor in end-of-life resale value. Just because consumers are dumb, doesn’t mean Apple needs to cater to them. A premium iPhone continues to be the best value proposition on the market today. Apple simply needs to continue to educate consumers directly through marketing or indirectly as consumers begin to experience these devices.

    Like I said, the device is virtually free over its life. The service contract is at minimum $1200 over two years. Just because Android users who have been swayed by cheaper (upfront costs only) devices are stupid, doesn’t mean Apple needs to write a billion(s) dollar check to cater to these mopes.

    Your corollary doesn’t make everyone happy – this shareholder doesn’t want Apple wasting its time on low margin devices simply to gain a seat at the arbitrary market share table.

      1. Not when the secondary brand can do more reputation damage than it can help the income statement. Other companies have proven quite extensively that it’s near impossible to make money on cheaper devices. You can’t market your way out of that problem.

      2. The Apple ‘brand’ is utility, quality and value; in other words, the Apple ‘brand’ is the result of the attributes of its design and the execution of that design and not the vacuous wordplay of some ‘copy’ of a marketing/advertising wonk–which IS how branding works.

    1. I like the Idea of Apple buying Blackberry, but NOT turning it into a lower end brand. On the contrary, I think it should be a lower volume high end business brand ala the mac pro with high margins. A pro business secure no nonsense brand. That’s what Blackberry was, it was never meant to be a mass market consumer brand for the everyman.

  4. The only valuable asset that RIM has is its patent portfolio so the only reason to buy it is to keep it from being bought by someone else (i.e. Google in the worst case scenario). Perhaps the Rockstar consortium should purchase it as they did with the Nortel patents.

  5. It’s an interesting strategy, but why wouldn’t Apple just create their own low-end brand?

    If the headlines on day one read “Apple launches new low-end phone brand called “Happy Phone”, they would have as much brand equity by day two as BlackBerry has (and unlike BlackBerry, public perception of the new brand would be 100% good).

  6. The only thing Apple should do is make it easy for RIM to release an iPad/iPhone app for Black Berry messenger. Apple should insist that this app is of high quality and integrates well with iOS 7.

  7. So basically he wants Apple to sell a 5 inch iPhone, 7.9 inch tablet, and slap the Blackberry name on it, all for about $4 billion?

    That’s the dumbest idea I’ve heard in a long, long, LONG time!

    No one is buying Blackberries now. Why would they buy an iOS “Blackberry?”

    They wouldn’t. They’d be buying an iOS device with a sticker on it. And that’s worth $4B? Exactly why would acquiring Blackberry help Apple?

    His Mini comparison is completely wrong, too. Mini had a strong, loyal following for their unique cars. Blackberry has nothing unique anymore except its Messenger service, which could have been leveraged a couple of years ago with an iOS app, but now it’s too late.

  8. Blackberry had its run, was unable to maintain its product and has self-destructed. Why would Apple want an association with failure or build crap under any name?

    I”m happy to know you don’t make decisions or even suggestions at Apple.

  9. If these devices are running iOS 7, use Apple’s App store, and if you have to go to an Apple Store or call Apple Support when something goes wrong, how could it possibly be separate from Apple’s brand? A Blackberry in name only like this would not fool anyone for long. Even extremely dumb customers are going figure it out.

    Apple would need a much time, effort, design, manpower, and money to make to Blackberry still appear as unique brand. It would be a very elaborate deception that seems to serve no purpose except to confuse customers and waste Apple’s resources.

      1. You talk as if this plan guarantees success.

        You really think Apple is going to dominate smart phone sales if they start selling cheaper, lower quality phones with the name “Blackberry”? If that’s such an obvious winning strategy, then why aren’t people just buying Blackberries now instead of iPhones and Androids?

        This scheme is so expensive, and it’s chances of success are so extremely doubtful, the total risk / reward proposition here is ludicrous. Apple would have a better chance of return on investment if they spent $1 billion on lottery tickets instead of Blackberry.

  10. This didn’t work for Daimler, and it wouldn’t work for Apple. This is no different than having licensed iOS to a third party.

    Sorry Charlie, we aren’t looking for good iOS phones. We are looking for iPhones which are magical, and run iOS.

    1. ‘Daimler’ I assume you mean Daimler as in Jaguar version. Think it was a successful brand for about a century longer than BB would if bought by Apple. Disappeared only because of its owners failings in the past, I wouldn’t be surprised now that Jaguar is thriving that the name could be revived should they decide to produce a limousine again in the future. Bentley and RR have done rather well for there new masters going up market for them.

      1. I was thinking about how they bought Chrysler and then sold. They tried making Chrysler branded versions of Mercedes vehicles, which were popular, but still it didn’t work for them as we’ve seen them sold, and now owned by Fiat. The corporate culture clash was too much. I thing BB would clash with Apple just as badly.

  11. So this is what happens when MDN hit-whores its own site!

    I read this not realizing it was original content, and was looking for MDN to rip the analyst a new one.

    Wow.

    This is by far, one of the stupidest suggestions I’ve read in a long time.

    1. Yes me too, not sure I can take this sites comment seriously now that they talk the same tosh as those they ridicule. This ideas sounds sensible for about 5 seconds at best. Did it take less than that write this trash I wonder.

  12. Wow, hard to believe Steve Jack wrote this.

    1. “For as long as Apple has been Apple there have been calls for the company to…” This is a paradigm crux. Some do not mind their personal power being usurped and will be happy if this, that and whatever happens. That’s fine listen to the call of others to… The other aspect is to take responsibility for your happiness so regardless of this, that and whatever happens, the happiness is sustained and endures. Personal empowerment, and that is core to Apple. Oh they will listen to the calls, and more often than not ignore them, choosing their own path.

    Going on about the price tags and what people want from Apple has to be carefully gauged. The thing is that “some” people (and I use the term loosely because I am talking about you, yes you jouranalysts) who want, desire, crave and constantly attempt to coach Apple from the side lines, make so much noise that you’d think that it was from a line up at the Apple store. The loud mouth minority sound off is impressive, but to the long relatively quiet line up at the Apple store the silent majority leave the store with their excellent Apple products.

    That is really the one major problem, trying to generate a solution that satisfies everyone. Apple is happy they don’t need a solution. The Apple customers are happy, you can tell by the way they push their dollars that way. The only ones I see that are not happy are the whining analysts and whore street journalists that whine whine whine and want Apple to do this that and the other thing. People with several synapses to spare know darn well that if you start doing thing the next thing you’ll be doing it trying to satisfy them by offering the moon, and you can rest assured that it won’t be good enough, it will never be good enough because it’s not about this that or the moon, it’s about control someone else to do your bidding. It’s not even a vision thing.

    Apple won’t buy Blackberry.
    -To report that is what a journalist should do.
    -To have an opinion on it is what an editor should do.
    -To speculate and move along a certain course of action, that’s up to the company decide. These days it seems that a lot of jouranalysts think that this is where they should be. With free speech and free will, go right on ahead because fortunately thanks to free speech and free those jouranalyst will be ignored, and worse yet called out as the buffoons they have now become.

    1. In effect, by entering into a licensing agreement with HTC, Apple is already partially doing what SteveJack suggests they do: take the mid-tier money away from Android.

      SteveJack’s idea works better because Apple gets all of the money, not just a small percentage per device, and the mid-tier users would already be on iOS and ready to move up to Apple devices (already have the apps) when the time comes.

      Apple could even run the Blackberry brand at break-even or just above. No profit would be necessary with the Apple brand continuing to generate very healthy profits. The pain inflicted on competitors and the growth of iOS alone would be worth the effort.

      There’s more to this idea than many naysayers here seem to recognize. Perhaps the “BlackBerry” brand is what’s thrown so many for a loop. In Apple’s hands, Blackberry is still a salvageable brand, unlike Palm, for example, which is too far gone.

      Imagine Apple bought a brand you like or have no strong opinion about, or created one (very expensive), would the idea of Apple having a separate mid-tier brand work then?

      1. Do you have any idea of the cost to this ‘fantasy’, they have just pumped a billion into this rotting corpse, and the one company that had effectively agreed to take it on has suddenly run a mile. I will remain a naysayer thanks as will Apple.

      2. While I’ll lean towards spyinthesky’s conclusion, I’ll grant you that the idea could be valid if Apple were looking at getting inside the corporate structure by a back door approach. Insofar as brand, the software contracts are interesting from that perspective. Plus the patents would have a value, but puhlease, it’s a dead company walking, let it die in peace.

  13. okay… then Apple should buy HP and Microsoft. Because there is a huge install base of enterprise Windows PC users around the world, and it would be cheaper for everyone if Apple owned and controlled ongoing development rather than forcing this installed user base (and those who spend money to maintain it) to start wringing their hands over switching issues. Apple could set Microsoft’s strategy at just Windows, Office, and the Xbox. All those enterprise WinXP users and their support base could heave a sigh of relief at not being abandoned, Apple-Microsoft would develop free upgrades to XP that would largely maintain it’s user interface while bringing it ‘up to code’ behind that UI.
    Microsoft’s big Achilles heel issue is that they waste so much strategy time and capital investment trying to chase Apple. That would stop, and development would slow down to becoming mostly a company that maintains enterprise installations, where they don’t need to upgrade things every year because no one from this market stands in line outside stores to buy the cool new gizmo. ‘Stable and consistent’ is more important than ‘cool an hip’. Millions of office workers
    are interested in doing their jobs, not having to stop what
    they are doing to have to pointlessly learn how to use the new gear that they don’t need.
    With HP, Apple would then compete with IBM’s big iron
    business and whittle down HP’s desktop PC product line
    to a few models, like the way the Mac is marketed. Enterprise
    market purchasers would love not having to waste time trolling through the absurdity of so many different models.
    The PC is a long way from being dead, nor is it heading towards and kind of nursing home. Give it yearly checkups and it won’t scream for a facelift or organ transplant for many years to come, or ever.
    I tell ya fellas, it’s Win-win (har har). Better to control and just
    dump the wasteful strategy of ‘competition’ because in reality
    they really only compete in the mindset of fanatics.

    1. It’s not about “BlackBerry.” SteveJack just used that to hook you into the article. Forget the “BlackBerry.”

      It’s about the idea of an Apple-run secondary brand that makes good iOS-based products for the mid-tier buyer.

      1. I have to respectfully disagree.

        This year saw the bifurcation of the iPhone line with the 5c and the 5s.

        Apple has now established two iPhone product lines. Over time, these two lines will continue to diverge. There is no need for badge engineering.

  14. Aaaaand SteveJack has officially jumped the shark.

    I saw this headline, and I thought, “What brain dead C – business student come analyst cooked up this ridiculous idea?” I cannot tell you the level of disappointment that arose from seeing that it was mind other than SteveJack.

    That your sober mind would even dream this up, let alone consider worthy of sharing is testament that you do not understand Apple, or what they want to achieve.

    Shame on you for making us previously think otherwise.

    1. See my longer post above. Is it the “BlackBerry” that bothers you so or is it the idea of an Apple subsidiary brand that goes after the mid-tier smartphone and tablet markets that Android is gobbling up?

  15. Why would they need to buy Blackberry to do this? If they’re designing them, creating the software and the internal hardware, what about them is Blackberry?

    The thing for Apple is that they can’t really have more tiers than they have now. If they run the same software but have less hardware, then they’re essentially just the same as older models, except they’ve had to spend more money and time to design these extra ones. With the software being such an integral part of these devices, there’s not a lot of differential you can offer when they’re all essentially doing the same thing. They could be as well served by keeping old models around for 1 generation longer and further reducing the prices for that oldest generation.

  16. Where’s the ‘or something’ MDN would normally add to such lunacy, oh I forgot this idiot is one of their own so stupidity doesn’t matter it seems. Heard a report today that their white knight having done a runner after seeing the books Blackberry have not a snowflake chance in Hell of remaining in the smartphone business. Apple would have to pay millions just to get rid of/close down what they don’t want and a billion perhaps to do that and keep the rest going till new phones as described above could be ready by which time the brand will be worth zilch. Even Microsoft wouldn’t be so stupid, just imagine the effort to simply produce products for it to sell, especially quickly. This idea is madness the only future for BB is to become a services company which may allow it to survive making moderate profits if it is lucky. The rest is the fantasy of a madman. Get back to the Roadkill commentary and keep off the dope.

  17. Haven’t seen a whole lot of these “Apple should buy (failing company that I hold shares in)” articles lately. I remember a pile of them about five years back.

    There is nothing Apple could possibly want that BlackBerry has, that can’t be had for far less than the cost of assimilating a failed company into Apple’s operations.

    -jcr

  18. Isn’t it interesting when somebody outside Apple tells Apple how they should spend their money. If the author had the same knowledge and information as Tim Cook does, then the recommendation for buying BB would not be entertained. The author simply does not have all the relevant facts to suggest such an investment decision. Apple will do just fine on its own without having to buy a failed company.

  19. I agree! Apple should buy blackberry and port their iOS to it minus the butt-ugly looking interface of iOS7. They should instead opt for a blackberry-apple combo because the blackberry interface looks like it was designed for adults while iOS7 looks like it was designed for young girls.

    Apple should also keep the blackberry keyboard with the trackpad and extra buttons and give us a screen that slides straight up so that we have the joy of a large screen phone with a real keyboard and an OS that works by Apple (minus the iOS7 kid look)…

  20. Do not agree
    BlackBerry it’s self is a very well-known brand. It’s not a brand that is known for mid-level products but rather a brand identified with the business community. Trying to pitch blackberry phones to middle consumer market just doesn’t play. Leveraging the blackberry name to business market might make sense.

  21. I think M$ should buy BlackBerry. They could name it BlackWindow, or WindowBerry! They’re two of a kind companies and deserve each other. Please Stevie B buy BlackBerry before you leave for good, 🙂

  22. There is something beautiful and democratic about Steve Jobs vision to only have one basic iPhone model (color and memory configuration aside)… The same one for billionaires and movie stars as well as high school students and office workers around the world. By contrast, looking at the car analogy mentioned above… Most companies pour the best components and design into their millionaire models and peddle inferior crap to the rest of the world… The same goes for Sony and almost every other company. Jobs made the best product apple could, made it affordable, and put the same version in everyone’s hands as the one he was using…

  23. Why buy a brand that is on its way out?

    However, there is something to be said about having a low-cost brand to reach the masses. Fender Guitars has Squier. Gibson Guitars has Epiphone.

  24. Hmmmpphh! Here’s MDN’s own take on this same brain-sead thread from an “outside” blog (Seeking Alpha I believe) from October. to wit:

    “If the main reason why Apple should buy beleaguered BlackBerry is the very same reason why Apple should’ve at one time bought beleaguered Palm, beleaguered RealNetworks, beleaguered Creative Technology, beleaguered ad nauseam, but didn’t, then your logic is fatally flawed.

    If BlackBerry was “a valuable property,” they’d still have a future instead of dying on the roadside after being steamrolled by Apple.”

    Not only is MDN now hot-whoring with the best of them, they’re cribbing from their own backfiles.

    WTF???

    dmz

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