Tomahawk, WI 11/06/2014 (Basicsmedia) – Blackberry Ltd (NASDAQ:BBRY) fell from glory in the smartphone space and is only currently trying to retrace its roots. However, the company has itself to blame according to a former top lawyer with the National Security Agency (NSA). Stewart Baker claimed that the drop in sales at BlackBerry had its roots in the fact that the company was offering secure features that couldn’t be cracked. Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) could soon have the same problem because they are actively seeking to encrypt their products.
BlackBerry styled itself as a provider of top-security communications platform that exceeded what its rivals offered. Such a reputation won it a lot of business among customers who placed the safety and security of their communications ahead of everything else. However, that proved to be detrimental to the company’s top and bottom lines in the long run, according to Baker.
The fresh claims regarding the failure of Blackberry Ltd (NASDAQ:BBRY) appears to challenge the long-held belief that the company’s demise had much to do with competition. Specifically, the fall from grace of BlackBerry had long been attributed to the penetration of the hardware and software products offered by Apple and Google. The emergence of iPhones and smartphones running on Android OS were seen as eating into BlackBerry’s market share. However, Baker stunned the audience in Dublin this week during an event known as Web Summit.
Baker not only sensationally claimed Blackberry Ltd (NASDAQ:BBRY) failed because of its top-security communications features, but also warned other tech giants. He said that they risked falling like BlackBerry with their aggressive push into security offering. Baker recognized that product encryption limits the ability of a company to sell even though it appears to earn providers of such features admiration.
Blackberry Ltd (NASDAQ:BBRY), facing challenges in the hardware front, transferred its device making operations to a company known as Foxccon. However, the company is still pushing aggressively into secure mobile platforms, especially for enterprises and government clients.