BlackBerry Ltd Still Struggling To Return From The Grave

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BlackBerry may be having a tougher time getting back into the game than previously thought. A recent survey suggests many decision makers at major companies are opting to either pass on BlackBerry’s management system after trying it or even simply not try it out at all.

BlackBerry’s EZ Pass a failure?

Morgan Stanley analyst James Faucette conducted the survey, which was covered by The Globe and Mail today. If the results really do indicate a broader trend across IT spending, BlackBerry could really be in trouble, particularly since its future hangs entirely on whether enterprise customers are willing to return to the fold.

Faucette surveyed 150 chief information officers in Europe and the U.S. and found a decline in the number of them who were willing just to evaluate BlackBerry Enterprise Server. Needless to say, this represents a huge problem for BlackBerry, as management has been touting the number of free EZ Pass subscriptions they secured in the last few quarters.

The whole point of those EZ Pass subscriptions was to let enterprise customers try out BES 10 so that hopefully they would upgrade to BES 12 and then become paying subscribers down the road. In other words, the rising number of EZ Pass subscriptions means absolutely nothing if the CIOs who participated in Faucette’s survey are representative of the broader trend across industries.

Falling enterprise interest in BlackBerry

The survey indicated that approximately 15% of CIOs who were willing to try out BES to manage their employees’ smartphones. That’s compared to about 22% of them in June of last year. Also the number who did try out the software and decided not to use it has almost doubled since then, climbing to 21 of the participating executives.

Faucette also said BlackBerry was toward the top of the list in a number of categories, including “No plans to evaluate.” The results of the survey appear to suggest that BlackBerry’s focus on EZ Pass subscriptions is nothing but a mirage because enterprise customers now seem less likely to become paying customers down the road. Last month, Chen announced that they had 4,900 customers signed up for the EZ Pass, compared to 3,500 in August.

The analyst also found that the number of survey participants who either purchased or planned to purchase BlackBerry’s product fell to 8% between October and January. Starting next month, we should begin to see some real indications of whether customers actually like the new BES because the EZ Pass trial period ends Jan. 31. A lot hangs on BES sales going forward.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.

7 Comments on "BlackBerry Ltd Still Struggling To Return From The Grave"

  1. The topic title is missleading. After 2 months, its well documented Morgan Stanley once again was wrong.

  2. It would have been better to present an article with Zero BIAS. What kind of a false title is this? “””
    BlackBerry Ltd Still Struggling To Return From The Grave””” Nonsense. A company with over $3B in cash came from the grave? A company that has more Enterprise Customers than its competitors combined. ValueWalk allowing such nonsense is Ridiculous.

  3. BS survey by Morgan Stanley

  4. Very obviously these WS crooks have their own agenda.
    Do you really think they have nothing to do and willing spent hours to write up articles to help investors from the good heart? lol
    They also timed the market to publish their well prepared article in order to attack stocks, only inexperience traders don’t see this.
    Talented people don’t need to use these dirty tricks to make money.

  5. Don’t trust this report. Nice try.

  6. Hi Michelle, perhaps it would be helpful if we could eliminate Morgan Stanley from the list of companies holding a vested short interest position in BlackBerry. That is to say that Faucette might be a bit guilty of misdirection if his Firm is deep on the short side of the trade, especially if that position is not declared. This in itself doesn’t make his speculation on BlackBerry’s future wrong it just levels the field for some critical thinking is all.

  7. Faucette is a PR stooge of desperate punk shorts. We’ll see how things go in the earnings reports.

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