BlackBerry Ltd ‘Doomed To Fail’ In Hardware: Analyst

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BlackBerry Ltd ‘Doomed To Fail’ In Hardware: Analyst
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Blackberry is “doomed to fail” in its latest product path, suggests Rosenblatt Securities analyst Brian Blair. The analyst has a price target of $7 on the Canadian firm, which is currently trading at more than $9.

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No opportunity in hardware business

Rosenblatt thinks the Canadian smartphone maker should abandon its hardware business altogether and focus on the software opportunities in the mobile and non-mobile sectors.

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“BlackBerry’s latest product path is doomed to fail for the same reasons BlackBerry’s hardware efforts have fallen short over the last three years,” Blair noted.

According to the analyst, the path to success is skipping the hardware market and focusing on getting itself a space in Android and iOS with BlackBerry Messenger. If the company decides to exit the hardware market, it can focus on R&D and capitalize on its IP, which shareholders will like.

Why is BlackBerry failing in hardware?

Talking about the Leap smartphone, Blair noted that the market has seen such stunts before, and the last time it was called the Z10, which could not sell as many units as expected to boost BlackBerry’s fundamentals. the Leap will suffer the same fate even though it is more elegant and has specifications that can stand in competition with other smartphones in the market, he believes. However, the fact remains unchanged that BlackBerry is still clinging to an ecosystem that consumers and enterprise customers are not interested in using.

Blair also mentioned that BlackBerry does not have a clear goal set, and a touchscreen phone is the outcome of such an indecisive track. Blair believes BlackBerry could have done better in emerging markets with low-cost smartphones, but that opportunity has also faded away with Android taking the spot.

Also there are very limited apps, discouraging users from getting a BlackBerry. The Canadian smartphone maker has failed to garner substantial volume in the market and has no standardization of a single screen size across its device offerings. Therefore, developers are reluctant in developing apps for the platform as they get meager incentives.

On Tuesday, Blackberry shares closed flat at $9.52, while year to date, the stock is down by over 13%.

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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
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29 COMMENTS

  1. You are arrogant… and calling other arrogant just because he doesn’t believe you… is the top…. You ant raise the bar any longer…

  2. How can you say that about that American, when you are supporting one? John Chen is arrogant and for that reason that beautiful little tech company will soon be gone, what a shame

  3. This story specified exactly what I have been saying all along but still no one wants to believe me. The design of the Passport and Classic caused this company to go in reverse rather then forward. The new device (the leap) will flop as the Z10 did, due to the timing of its release. The Z10 flopped due to its Iphone lookalike, now BlackBerry did the same thing with the Leap iphone 6 lookalike.

  4. Blackberry & OS 10.3.+++ = solid hardware and will last for many years, now it support (google market place) and almost 70 percent of the available applications will work, its secure and user friendly, and many more. Mr. Aman Jain, kindly do your survey and studies right!

  5. listen to me you dumb canuck – without the USA you would have nothing. never forget that. show some respect and appreciation you dumb canuck. canada lives off of the goodwill of the American people.

  6. that’s it, live in your little American bubble while the rest of the world passes you by! There’s a reason you have the worst crime rate, economy, obesity, corruption, and hate when travelling to other countries, your arrogance!
    Must be upset that Canada always beats you in hockey! Must be hard being second to us canucks! lol
    Oh yeah, by the way, your silicon valley toy manufacturing company is screwing your country over by the billions by not putting any money back into your economy by not paying taxes and yet you praise and support them, who’s the stupid one now?

  7. said the guy who is in a country that is now under power to the Japanese and Canada. How would you like your Canadian oil?? Since your country cant produce squat!

  8. canucks are a nice, simple people but the fact is they just aren’t very bright. if canada disappeared tomorrow nobody would notice or care. nice people, but completely irrelevant and insignificant. canada lives off of the goodwill of the American people.

  9. John smith thinks Canucks can’t compete.. Really? is that why Ford dumped microsoft in favour of Qnx . Samsung is using bes 12 to secure knox. Google Asked Blackberry to secure Android. Iot Qnx Bes12 Handsets Paratek Movirtu secusmart = win very soon for Blackberry.

  10. Do you know what revenue is? BlackBerry shouldn’t give up on 46% of their revenue… the costs of manufacturing the phones is negligible compared to the net especially when a vast number are sold directly by BlackBerry with no middleman.
    You may not like BlackBerry phones but you need to revisit finance 101 before spraying the Internet with such nonsense. Also, you do realize there are still secure business segments that only BlackBerry has been able to meet the strict requirements for security?

  11. agree with author. BBRY is doomed. silly dumb canucks can’t compete with the best and brightest from around the world that come to Silicon Valley. canucks are a nice people but they just can’t compete in tech. best to stick with poutine, lumber, and hockey. simple things.

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