The inside story of how the iPhone crippled Blackberry ...

JACQUIE MCNISH & SEAN SILCOFF, THE WALL STREET JOURNAL:

"The iPhone’s popularity with consumers was illogical to rivals such as RIM, Nokia Corp. and Motorola Inc. The phone’s battery lasted less than eight hours, it operated on an older, slower second-generation network, and, as Mr. Lazaridis predicted, music, video and other downloads strained AT&T’s network. RIM now faced an adversary it didn’t understand.

"'By all rights the product should have failed, but it did not,' said David Yach, RIM’s chief technology officer. To Mr. Yach and other senior RIM executives, Apple changed the competitive landscape by shifting the raison d’être of smartphones from something that was functional to a product that was beautiful.

"'I learned that beauty matters.... RIM was caught incredulous that people wanted to buy this thing,' Mr. Yach says."

Read it, here.