Is BlackBerry Ltd Showing First Signs Of Recovery?

Blackberryuser1462590383 / Pixabay

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s OS gained a sliver of market share, rising from 1.13% in March to 1.20% in April, according to a monthly report released by Net Applications. Although only a minimal increase, this could be seen as a first sign of improvement in the company’s long-term fortunes.

A report written by David Eller and published by the MotleyFool asks the titular question and comes up with a positive answer.

Gaining stability in market share

The data from Net Applications include tablets as well. Apple Inc. (NASDAQ:AAPL) is again on the top with 51% of the pile, leaving Android far behind at 38%. Apple is the producer of every device running on the iOS platform, but Android powers handsets and tablets manufactured by several other companies including Samsung, LG, Motorola and others.

It would be great news for BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) if it manages to gain stability in the market share even after its split with T-Mobile following the trade-in program launched in February. The carrier announced a new program where customers could trade BlackBerry devices at discount in return of a new iPhone 5S. However, soon after the announcement, ties between BlackBerry and T-Mobile soured and the two companies ended their partnership.

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) stock has been highly volatile this year as the company posted better than expected results, but disappointed on sales. Following the most recent results, a three-week sell-off was triggered in the stock, taking it down 22.5% in mid April. BlackBerry, however, continued aggressive cost cutting in executing their turnaround strategy.

Reducing cost, retaining customers is the key for BlackBerry

The Canadian company should continue to follow the strategy of containing costs and at the same time retaining its corporate customers and expanding in emerging markets. The recent partnership with Foxconn will also help BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) to bring down costs as the manufacturer increases the number of units manufactured. Also, CEO Chen has guided towards a greater focus software and service once cash flow becomes positive. If BlackBerry succeeds in turning around its smartphone business, then there is a strong possibilities that a large system vendor purchases the division.

The Net applications report is generally positive regarding BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s ongoing turnaround. “However, small indications of improvement preview larger, more tangible data points. If nothing else, it may show that market share isn’t continuing to slide,” according to Eller.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)



About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

22 Comments on "Is BlackBerry Ltd Showing First Signs Of Recovery?"

  1. I see, so if the others have surpassed BB or caught up to them then why doesn’t Obama switch to his preference (which is not BB). Can’t answer the question can you?

    “Please tell me why the CIA had Obama ditch is regular PDA and replace it with a Blackberry?”

    Devvvvvvvvvvvvvvvvvvvvvv you are a waste.

  2. im not doubting that BB had top notch security at one time but sorry rivals have caught up, and perhaps passed them.

  3. nowheremanners | May 9, 2014, 5:33 pm at 5:33 pm |

    Devvvvvvvvvv. Your rhetoric is worthless.
    Did you know that the technical term for their security is not “high security”?
    Did you know that their security is different?
    Please tell me why the CIA had Obama ditch is regular PDA and replace it with a Blackberry?

  4. of course that is understandable, BB has almost zero market share what do you expect?

  5. im not lying, how can you possibly believe that only BB has access to high level security features, its silly to believe that and you know it.

  6. nowheremanners | May 8, 2014, 9:22 pm at 9:22 pm |

    Devvv is a wack job. I don’t know why he is obsessive about BB. He trashes them at every opportunity (every article about BB) while professing to wanting the company to do well. He is unreasonable.

  7. nowheremanners | May 8, 2014, 9:20 pm at 9:20 pm |

    Devvvvvvv
    Why do you continually lie about the security comparisons between BB, Apple and Android?

  8. BB is the best security solution, not the only one. Nobody can be “dumber then” (you mean than), and Apple isn’t dumb, but they are nowhere near as good at security as BB is. The marketplace is in agreement that BB security and MDM solutions are better and more complete, that has nothing to do with numbers or popularity. Is a McDonalds Big Mac the best hamburger in the world just because it sells more than everything else? Of course not, it’s actually crap, isn’t it?

  9. so you are stating that Blackberry is the only platform that has access to security solutions? I really find that hard to believe. Are you stating that Apple is dumber then Blackberry? is the whole marketplace wrong? why is Android and Apple taking over if what you say is true?

  10. BB still is the most secure. Not sure why you won’t admit it. Knox is a fail, Good, Mobileiron et al are not good enough as far as MDM goes. Both iOS and Android are not secure, and BB is.

  11. yes that was much better, however rivals have the resources and the R&D to rapidly pass Blackberry in this field. Yes I do believe at one time Blackberry was the most secure platform but you must remember all rivals thrive to meet this same level and may have already done so. remember nothing is impossible.

  12. Fine then…
    Of the current OS offerings, and in the foreseeable future of said OS offerings, only BB10 can be said to be secure.
    Better?

  13. just the fact you said never, makes me not believe you.

  14. Nope. The reason is because BB is built better than everything else. That is why you cannot root a BB phone. Give up, iOS and Android can never be as secure as BB is.

  15. the reason BB has almost zero issues is due to only having 1% market share.

  16. Still off the meds Dave?

  17. That is so not true. iOS is constantly being exposed as a swiss cheese OS. Dropoutjeep, Siri bypassing lock screen, so many others. Android has more malware problems than any other OS. BB? No… almost zero issues.

  18. Jim the security thing is getting old, all platform somewhat possess the same level of security nowadays.

  19. How did you find out about that?

  20. agreed. DEVVV just likes attacking BB cause they have a restraining order on him…lol

  21. The US doesn’t matter right now. Except for people who need real security: lawyers, bankers, CEO’s, Obama, etc., they are not focused on the US market. In the developing world phones are for business not entertainment. One step at a time. Have fun with your iPhone.

  22. No, news story said on the weekend that US market share continues to fall. Chen is still continuing to fire employees, rather then focusing on innovation.

Leave a comment

Your email address will not be published.