Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) is failing to make a splash in the United States and now it’s time for the company to face the music. During the annual shareholder meeting on Tuesday, Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)’s execs. were asked questions about the company’s most recent failure, the BlackBerry 10.
The Canadian tech giant’s chief executive officer Thorstein Heins explained, “It’s the most ferocious and competitive market in the industry.”
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BBRY Faces Competition
Blackberry / Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) faces competition from the likes of Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). When given the opportunity to purchase a new smartphone, most users will opt for perennial favorites like the iPhone 5S or Samsung Galaxy S4. BlackBerry just can’t compete any more and their fiscal first quarter results reflect that. BlackBerry shared their North American sales of $761 million. Although that number was above the previous quarter, it’s still a four percent decline from last year when BlackBerry 10 smartphones launched.
It’s important to point out that the United States market was rough for Blackberry / Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) simply because the amount of control wireless carriers have on the market. Since the majority of sales are made within major carrier stores like AT&T and Verizon, the companies have a say in who succeeds and who fails. Heins added that BlackBerry works with the carriers to sell their products but that also means they have to compete with better phones.
Going Where the Puck Is?
He further explained, “It’s hard to convince them to go where the puck is vs. where the puck will be. We value our relationship with the carriers, but there’s some opportunistic thinking there.”
Not surprisingly, AT&T Inc. (NYSE:T) makes the most sales from the iPhone. Heins doesn’t place the blame on the other companies, he admits that his company should convince carriers that the BlackBerry is worth it.
Unfortunately, it appears that Blackberry / Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)’s glory days are over. It may be too late for the company to get back on track.