BlackBerry Comeback: The Company Is Reborn As A Software Company

BlackBerry Passport John Chenuser1462590383 / Pixabay

This year was full of surprises. Apple didn’t stop at making only iPhone 8 and iPhone 8 Plus, and featured the arriving iPhone X. Google is announcing new Pixel phones on October 4th. What is a wonderful surprise is the news of BlackBerry comeback.

It is a known fact that BlackBerry has been struggling with its products over the past few years. How could it not? The past few years welcomed many futuristic gadgets, including high-end iPhone devices and even more Android-friendly devices. BlackBerry’s operating system had a hard time fighting that.

When everyone was convinced BlackBerry was to meet its end, it is making a debut as a software company. The BlackBerry CEO John Chen is going to lead the business towards its journey as a software company focused on security.

One month ago, BlackBerry said that it’s releasing its own software dedicated to its mobile phones. The future smartphones are going to feature this software together with Google’s Android 7 Nougat operating system.

BlackBerry was one of the leading companies focused on smartphone manufacturing back in 2009. It had control of the market with a 41,6% share at the end of the year. Unfortunately for BlackBerry, Samsung and Apple vastly progressed during 2013 and gained quite the share of the market. That’s when John Chen, the current BlackBerry CEO joined the team. Unfortunately, it was too late. BlackBerry had just about 3% share of the smartphone market.

In the last four years, BlackBerry has made several attempts to return in the game as the leading smartphone company. Sadly, unsuccessfully. No one knew whether the company will continue to battle the market and withdraw. Luckily, it is. However, this is a different market we are talking about.

Everyone seems to be pleased that Chen took the initiative to turn BlackBerry into a software company, BlackBerry comeback appears to be paying off. It’s never easy to face defeat. BlackBerry had to face it several times, although, now, it was worth it. The revenues the company is making prove that this was an intelligent step.

According to analysts, BlackBerry was expected to continue sinking. No one believed BlackBerry’s report once it emerged. The company announced a $249 million revenue. The largest part of this profit belongs to BlackBerry’s focus on the security-centered software of $996 million. Basically, company’s stock grew by 12%.

Another information that scratched the surface is that Blackberry will follow other giants and take on a journey focusing on the self-driving vehicles. It is expected that BlackBerry will collaborate with Delphi Automotive for an operating system for self-driving cars.

What do you think about the BlackBerry comeback? Let us know in the comments!

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

Danica Simic
Danica Simic has been writing ever since she was a child. Before she started writing for ValueWalk she was reviewing laptops, headphones and gaming equipment as well as writing articles about astronomy and game development. Danica is a student of applied and computational physics while also studying software and data engineering. Her hobbies include reading, swimming, drawing and gaming whenever she has free time. - Email her at dsimic@valuewalk.com

Be the first to comment on "BlackBerry Comeback: The Company Is Reborn As A Software Company"

Leave a comment

Your email address will not be published.