Originally Posted by
Troy Tiscareno Carriers for the most part aren't the enemy - carriers don't really care what phones they sell, as long as:
- Customers come into the store in high volumes looking to buy it, and sign up for service in the process.
- The phone is fast to set up and easy for new users to use.
- There are very few returns for any reason, as those cost the carriers a ton of money.
- The company supplying the phone is able to market the brand and drive interest in it.
Those things really haven't been true of BB-branded phones since 2011. The Storm is arguably the device that morally wounded the company, because Mike couldn't accept a standard touchscreen and insisted on developing the clicky screen (Sure Touch) that literally no one asked for, and which worked poorly and caused all kinds of problems long-term.
Anyway, Verizon alone lost a billion dollars on the Storm, and as Jim said in the book, "We're not prepared to write that kind of check." As true as that was, leaving your most important partner with a billion dollar loss isn't exactly the best recipe for long-term business success - and it's not like they had an amazing product that was going to set sales records and make Big Red a ton of money coming up - they only continued to cause losses for their carrier partners.
ANY retailer is going to reconsider a product line or a brand if that brand fails with customers and causes a lot of returns and high rates of dissatisfaction, whether you're a grocery store, a car company, or a restaurant. It was BB's job to meet the needs and desires of the customers and the carriers - but Mike was only interested in doing what HE wanted, and cared little about what the customers wanted. As soon as any real competition showed up, Mike was quickly outclassed and had no real answer. Being isolated from the center of the tech world, and surrounded by "yes men" who couldn't tell Mike "no", Mike was allowed to drive the BB train off a cliff.