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Canadian government won't step in to fix BlackBerry

Posted: , by Alan F.

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Canadian government won't step in to fix BlackBerry
Canadian Minister of Industry James Moore understands that times are tough for Canada's BlackBerry. But Moore says that it will be up to the troubled handset manufacturer to turn things around. Pinning high hopes on the company's new BlackBerry 10 phones, the handsets have not generated the kind of sales that CEO Thorsten Heins was looking for and BlackBerry's board is now exploring all possibilities including a sale of the company, or even the idea of taking the company private. Going with the latter plan would allow BlackBerry more time to turn things around, unencumbered by the demands of Wall Street to beat earnings estimates each quarter.

Since BlackBerry employs a large number of Canadians, you might expect that Canada's government would hate to see the number of unemployed Canadians grow sharply. But Moore was adamant about where the responsibility to turn BlackBerry around lies, saying that "it’s for them (BlackBerry) to engage the market and provide devices and services, platforms, content that the market will receive well." The country's industry minister had the understatement of the year when he said that the OEM was having a "hard time" with the BlackBerry 10 line.

BlackBerry's largest stockholder, Prem Watsa, announced his resignation from the BlackBerry board on August 12th which means that he could be involved in a plan to save the company. So far, there have been three BlackBerry 10 handsets released including the all-touch BlackBerry Z10, the QWERTY equipped BlackBerry Q10 and the so called entry-level BlackBerry Q5. While it has not yet been introduced, leaked photos have appeared of the BlackBerry Aristo Z30/A10, expected to be released in November. This will be the first 'Berry to offer a 5 inch screen and while CEO Heins said  that he is excited about the device, it will face some heavy duty competition from phones like the Samsung Galaxy S4, HTC One, Sony Xperia Z, Nokia Lumia 1020, the Apple iPhone 5S and the LG G2.

At one time synonymous with the term smartphone, BlackBerry lost its way once the touchscreen Apple iPhone was introduced in 2007. BlackBerry's management at the time was cocky and in denial, leading to a downward spiral from which it has never recovered.

"This is a Canadian company with a long track record of stirring up innovation and important changes in the products we all use. They employ a great number of Canadians. It's been a source of Canadian pride and we hope that they do well. I know that they're facing their challenges and they're adjusting their firm internally in the way that best suits their interests. And all I can say is, we wish them well, and we're keeping a close eye on the situation."-James Moore, Canadian Minister of Industry

source: Bloomberg

10 Comments
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posted on 22 Aug 2013, 23:05

1. Dastrix (Posts: 599; Member since: 23 Nov 2012)


Interesting. As a prominent Canadian company, they should've expected a bail-out of some sort, but I guess the government knows what's up. Looking back into history, no government support when needed means imminent failure. This isn't happening for the first time either with Canadian companies.

posted on 23 Aug 2013, 00:09 1

5. Droid_X_Doug (Posts: 5871; Member since: 22 Dec 2010)


Also known as don't throw good money after bad. BB needs to sell itself to whomever will pay the most for its cash and patents. The game is over.

posted on 22 Aug 2013, 23:18

2. ZeroCide (Posts: 696; Member since: 09 Jan 2013)


DOOOMMMED DOOOOOOOOOOOOOOMMMMED!!!!

posted on 22 Aug 2013, 23:32 8

3. alterecho (Posts: 1085; Member since: 23 Feb 2012)


If Blackberry themselves don't want to be fixed, how can the government help?

posted on 23 Aug 2013, 00:10 4

6. Droid_X_Doug (Posts: 5871; Member since: 22 Dec 2010)


More like why should the government help?

posted on 23 Aug 2013, 00:40 2

7. itsdeepak4u2000 (Posts: 2694; Member since: 03 Nov 2012)


They need to lower the prices of their devices, they are way to expensive, also I think that they should try for some Android or merge with other OSs.

posted on 22 Aug 2013, 23:47

4. Jurdiales (Posts: 117; Member since: 10 Oct 2012)


Blackberry needs to change from inside, because now it's like trying to help a very sick person refusing medical attention or something like that...

posted on 23 Aug 2013, 07:45

8. Armor (Posts: 49; Member since: 06 Dec 2011)


Why would the government not help a major company? The US government bailed out General Motors or they would not be here today. Lots of jobs saved. Same goes for Blackberry!!

posted on 23 Aug 2013, 20:37

10. rossy (Posts: 1; Member since: 23 Aug 2013)


So the major company must be saved with taxpayers money but the small ones don't? What is the major company anyway? 1000 employees, 10,000, 100,000? The U.S. government lost money on the GM and Chrysler bail-out. It bailed out unions by putting putting them ahead of the line. Ahead of bond holders and preferred stock holders. When a company owes more than it can pay back, there is an established bankruptcy process with a judge managing the process of settling company's debts. GM and Chrysler would have gone through it like other companies did, and would have emerged leaner and not settled with debt. That process was just delayed by the bail out. No issues were solved. I am glad Canadian government lets the free-market and the company itself sort out its issues.

posted on 23 Aug 2013, 10:44

9. PhoneCritic (Posts: 360; Member since: 05 Oct 2011)


This is the point where I believe BB needs to think about getting out of the hardware business and becoming a services company offering BBM to other platforms. Time is running out and a quick decision needs to be made because competing Apps are gaining traction and will offer stiff competition to BBM when or if it arrives to iOS, Android and WP

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