Why I ditched Blackberry for Samsung and not Apple

WHEN I was 11, I got my first mobile - a Nokia 3410. Compared to the modern smartphone, there wasn't a lot you could do with it. I guess it was good for playing Snake II, Space Impact and Bantumi. Other than that, the phone's functions like reminders and the calculator weren't that exciting to an 11 year old. The good thing however about phones back then was that because they were all simple in design and functions, it was easy to choose a new phone when you needed one. This is exactly what I miss about the phones of the early 2000s.

My 2 year old contract Blackberry Bold is due up for renew and I spent/wasted a lot of time this week (re)searching for a new phone. I really do like Blackberry. Their indicator light, acceptable size, physical QWERTY keyboard and its ability to receive emails extremely easily has made me value this brand over the unnecessarily large touchscreen smartphones that grace the phone market. But as a follower of business news and tech companies, I knew deep inside that choosing Blackberry again -  even their new models of Q10 and Z10 would be a mistake. 

Blackberry, who changed its name from Research In Motion at the beginning of 2013 (to put the emphasis on the company's main product) is really a dying brand and a maker of phones in many ways. I don't think it is the 'design' of Blackberry phones that have caused their continued poor performance but it is the Blackberry software itself. The phone market is populated by touchscreens and for 3+ years, Blackberry have adopted touchscreen technology into various models, such as the Bold Touch range and the Torch range. Therefore, the physical design is not likely to be a shortfall. I believe the real shortfall lies with the software. iOS and Android are more technologically advanced than Blackberry's software. Without going into the tech. specifications, I think its fair to say that the former 2 operating systems can just 'do more' than Blackberry. This is exactly what makes iPhones and other phones that run Android more exciting and fresh. For example, many applications today are developed for Android and iOS, leaving Blackberry out. One of the reasons for this is that Android and iOS are technically superior, allowing apps with more functions and graphics to be coded. I do use apps and as a Blackberry user, I have often been frustrated when I cannot download app x for a Blackberry platform. Blackberry's newest software - Blackberry 10 - allows for Android apps to run although the developer will have to tailor some code to suit a Blackberry phone. Despite not being a fan of the huge touchscreen only smartphones, the general superiority of iOS and Android (that you can 'do more') is the main reason why I could no longer consider Blackberry. 

So now the choice was down to iPhones (by Apple) versus Android phones (by HTC, Sony and Samsung).

For me, iPhones and iOS are still the most aesthetically pleasing phones and operating systems on the market. However, between the iPhone 4, iPhone 4S and the current iPhone 5, there have not been that many variations in design or internal software at all. This argument holds for the iPad and iMac ranges. Whether Apple is guilty of patent thickening is debatable, but the truth is that iPhones have become boring, unexciting and still overpriced because the brand is 'Apple'. I am wondering if Apple still has the same innovative foresight as it did under Steve Jobs. Probably not is the answer. Because of this (lack of innovation and variation in their products), I am not convinced that I can be fulfilled with an iPhone.

So next, my search turned to the Android phones. 

Sony was easy to ditch as the design of the Xperia range didn't quite appeal to me. It is too rectangular and 'sharp'. 

HTC's latest phone - HTC One and Samsung's Galaxy S3 and S4 became the serious contenders. First thoughts? Well, the HTC One's serious silver slick design and its frontal 'Beats' speaker attracted me to the phone immediately. One the other hand, the S3 and S4 are both technologically powerful, yet they are not as aesthetically pleasing and definitely the least premium feeling phone (with a plastic casing) in their category. After much pondering, watching various Youtube phone reviews and copious visits to various phone shops, I decided to settle with Samsung for their technology and all their extra functions over the HTC (and also Apple). The S4 is lighter, has a bigger screen, a faster processor, an improvement of 5MP in its camera to 13MP and a better resolution. But the S3, only one year older then its successor, it not that inferior. Therefore, (unlike most people), I didn't think it would be worth paying an extra £12+ per month to upgrade to the S4 and settled for the S3 in the end.

Perhaps my thoughts have been reflected in the companies' recent financial results. Blackberry's results coincidentally were released today. Their Q1 results for June 2013 ended (fiscal year 2014), revealed that although revenues reached $3.1 billion (up 15% from previous quarter) and global shipments of smartphones were up by 13% to 6.8 million, they still made a huge operating loss of $84 million. Even with the roll out of new products and services over the next year and the global roll out of Blackberry 10, I am not convinced in this competitive environment that Blackberry can turn fortunes around so easily. I would anticipate another loss in Q2. However, perhaps they can be helped by the adoption of BBM on to iPhones and Android. BBM is more user friendly and established compared to other instant messengers like WhatsApp or PingChat. It wouldn't be a bad idea either for Blackberry to 'combine' their traditional QWERTY keyboard with a full touchscreen using microfluidics technology (by a joint venture) as seen below. However, like Dell, I think Blackberry would really benefit from a buyout and going private for a few years. It has little prospects of competing with Apple, Samsung, HTC among others even with the launch of Blackberry 10 and its future successor operating systems. It would be a good time for Blackberry shift its focus out of  smartphones and into business services. 

This quarter has really belonged to Samsung, who has become the most profitable mobile company in the world, (finally) beating Apple. In Q2 2013, to June month end, Samsung's phones made an operating profit of $5.2 billion ($7 billion for the entire company). This has mostly been driven by strong demand for Android devices from Asia and LATAM as well as its new S4. Samsung has also succeeded with rigorous cost controls, high volume of production and high wholesale prices. 

Apple's iPhone profit was $4.2 billion ($6.9 billion overall for company). This figure has marked the iPhone range as 'underperforming',  reflecting poor sales of the iPhone 5 globally including China, and strong competition from the likes of Samsung. Samsung now accounts for the biggest share of the global smartphone market at 27.7%. Nokia is in 2nd with 15.8% while Apple is in 3rd, accounting for 8% of the global smartphone market, their smallest market share in 3 years. (Blackberry does not rank in the top 5). This, coupled with a lack of innovation and unsuccessful attempts to gain significant market share in emerging markets due to their high price of phones, has made Apple less and less of a darling company. In Sept. 2012, Apple's share price hit a record $700 odd but now it is trading at 40% less. Until a brand new innovation - that is not an adaptation of its existing products - the story for Apple is likely to remain the same. According to Tim Cook, this is likely to happen in autumn 2014. The 'Apple watch' is likely to be one of these, but I will be curious to see what else there is...

JH