BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) recently revealed in its annual filing that CEO John Chen is planning to enhance QNX as the company is intending to integrate this software in the Machine-to-Machine connectivity industry, popularly known as Internet of Things. A report from Seeking Alpha by IAEResearch offers further details on the growth potential of BlackBerry in the segment with QNX.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) IoT a growing segment
Internet of things (IoT) is an area where BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) will have significant chance over the next few years with the increasing growth of the segment. According to research from IDC, the market can grow to $8.9 trillion by 2020, connecting 212 billion devices out of which 30.1 billion will be connected autonomously.
To date, QNX was seen as software for enhancing the connectivity in car-infotainment systems and various other functions. But BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) has taken up other projects in various sectors such as medical and military facilities, where the margin of error and down time are critical issues. The Canadian smartphone maker has also recently announced project Ion, in which QNX will be integrated with IoT applications.
Additionally, this system will be connected with Enterprise Mobility Management so that companies could access and manage their data through a multi-platform structure. QNX would turn out to be a vital platform for IoT applications and BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) will definitely extract benefit from the platform over the next few years, according author.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) tasting success with low-cost BES strategy
To garner more market in the segment, the Canadian is embarking upon the low-cost strategy. The strategy is adopted with major focus on BES platform. A customer would have to pay double if upgrading from BES5 to a rival compared to the up gradation from BES5 to BES10. The strategy worked perfectly well, and the BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) has issued 800,000 new licenses after becoming the lowest cost MDM provider in the industry. BlackBerry, also, holds a lead in three segments i.e. Basic, Enterprise and Regulated Mobile device management.
At present, the company is struggling in the smartphone segment with almost negligible share, but it can turnaround by focussing on enterprise segment. Also, with the advancement in IoT over the next few years, the company is poised to rebound. “BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is on the right track, and the company will be able to make a turnaround,” according to IAEResearch.