> Everyone was utterly shocked. RIM was even in denial the day after the iPhone was announced with all-hands meets claiming all manner of weird things about iPhone: It couldn't do what they were demonstrating without an insanely power hungry processor; it must have terrible battery life, etc. Imagine their surprise when they disassembled an iPhone for the first time and found that the phone was battery with a tiny logic board strapped to it. It was ridiculous, it was brilliant.
The story of their reaction to the iPhone is a bit more nuanced. It's fleshed out in more detail in the book "Losing the Signal" which is a look at RIMM from it's inception in the 1980s up to around 2013 when their market share had collapsed.
Basically, both Lazaridis and Balsillie agreed that they should downplay the innovation in the iPhone when in public. Internally however, they were scrambling to build a competitor because Verizon told them to. RIMM's business was very heavily tied into US and international carriers and serving enterprise clientele, and none of them had asked for anything like the iPhone, so they just never bothered.
2017: "Um, what's BBM?"
Motherfucking Blackberry. How they managed to fly that ship into the sun we may never know, because that shit was hard to fuck up.