The Effects of The Apple Inc (NASDAQ: AAPL) and IBM (NYSE: IBM) Deal On BlackBerry Ltd (NASDAQ: BBRY)

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By Stefan Larson on July 21, 2014 Technology & Software

Earlier last week, Apple Inc. (NASDAQ: AAPL) announced that it solidified a partnership with International Business Machines Corp (NYSE: IBM).

Apple burst into the enterprise as a newcomer, but with formidable market moving power. In just a decade, Apple has risen from a small computer startup to one of the most powerful companies in the United States. It transformed a nation of Windows and Blackberry users into consumers of Macbooks and iPhones. Now, Apple is joining the ranks of IBM, Oracle, SAP, and Microsoft.

As consumers and businesses move away from a PC world to one focused on streaming media, cloud, mobile devices, Apple has become a natural big player in the enterprise. For most users, the laptop or desktop PC is no longer the center of their lives, but rather the smartphone or tablet.

For most businesses, the departure from PCs is slow and may never happen. But for others, the smartphone and tablet can supplement the PC’s role and also add layers of context, portability, and flexibility.

In order for Apple to become the dominant force in the post-PC world, it needs IBM. Apple stated that its goal is to transform enterprise by joining Apple’s mobile and tablet hardware with IBM’s services, including its security and cloud system Big Data. IBM also develops custom solutions for its clients, even for iOS systems. The company can offer help with provisions, finances, and support for Apple in the business.

Additionally, IBM’s MobileFirst platform for iOS provides services for business from top to bottom, from cloud storage, workflow, and analytics, to integration, security, and device management. Mobile management includes a catalogue for private apps, security services for data and transactions, and productivity sets for MobileFirst and iOS solutions. These services will be available to physical software solutions and on IBM’s development platform in IBM’s Cloud Marketplace.

For IBM, the partnership with Apple gives it a leg up when trying to gain new clients or retain existing ones. Apple’s customer service group AppleCare will offer IT departments and consumers with 24/7 help service, with IBM providing the on-site assistance.

How does this deal affect Blackberry?

BlackBerry Ltd. (NASDAQ: BBRY) already provides most of these services for its users. The company joins with other retailers to offer customers optimized applications. BlackBerry with most likely find a partner to match Apple and IBM’s services for analytics, storage, and workflow.

Additionally, Apple and IBM’s mobile support system is very similar to BlackBerry’s Gold Service customer assistance service.

A key difference between Apple’s and Blackberry’s tablet products is that Apple’s iPad focuses more on visuals and aesthetics, while Blackberry’s tablet emphasizes utility.

The joint Apple and IBM team will very likely have a small effect on Blackberry Ltd. Most businesses want support for multiple devices – Windows, iOS, Android, and Blackberry. The Apple and IBM deal only supports Apple, while BlackBerry manages iOS, Android, and Blackberry. Additionally, neither IBM nor Apple offers a secure network.

Additionally, Apple and IBM usually command high prices. While no prices were disclosed in the announcement, it is only natural that Apple and IBM will cost more in markets that overlap with BlackBerry’s.

BlackBerry is a dominating force in the finance, healthcare, and telematics industries. IBM and Apple plan to target the retail, healthcare, banking, travel, telecom, and insurance markets.