Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)/BlackBerry may not be the next giant in the smart phone industry. The company is not giving up on that dream just yet, but it may be shifting some of its resources to concentrate on a separate part of its business, mobile services.
According to an article on Yahoo! News earlier today, the Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)/BlackBerry conference, which took place last week, shows that the company is shifting its emphasis to services like BlackBerry Messaging, rather than the hardware. The move in emphasis, as interpreted by the stock market, has seen the company’s shares fall nearly 5 percent in the last five days of trading.
Research In Motion Ltd (BBRY)/BlackBerry New Phones:
That conclusion might be a little bit preemptive. Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)/BlackBerry just launched two new smart phones last January, and it launched a new budget model last week. The company was never going to update its line of phones last week. The conference was all about improving the ecosystem.
The firm launched several initiatives at the conference last week, including an update to its incredibly valuable property, BES or Blackberry Enterprise Services. The 10.1 update will spur enterprise customers to upgrade to the company’s new smart phones. Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)/BlackBerry is not giving up, or even emphasizing services over its smart phones, instead the company is building an ecosystem that it hopes will attract people to its platform.
The Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)/BlackBerry line of smart phones is far from dead, and the company’s past reliance on enterprise buyers is still alive, as is the presumed importance of the group in the firm’s current generation of smart phones. That market tends to be conservative, and their purchases are bound to be delayed on new announcements.
The conservatism of the enterprise market means that those still using Research In Motion phones are more likely to upgrade to the firm’s current generation, once its position is secure. BlackBerry is not dead, and services are not separate from hardware.
So far in 2013, shares in Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)/BlackBerry have risen by more than 24 percent. The rally in the stock market coupled with some optimism about the firm’s future, after what seems to have been a reasonably successful new smart phone launch, appear to be responsible for the increase in the value of the firm.