Research In Motion Ltd (NASDAQ:BBRY)‘s business phones had a good share of the market for a long time, but one thing they forgot was to innovate with time. This is where Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (KRX:005935) capitalized with their smartphones and operating systems. BlackBerry 10 has a lot to do so that the company can rebound out of its bad past.
The Z10 sales mystery
There are mixed reports regarding the sales numbers, as the company has not come up with concrete figures as yet. On one hand, Pacific Crest and Canaccord estimate sales of 275,000 to 325,000 phones for the February quarter, whereas Jefferies’ Peter Misek estimated a sale of 500,000 phones for the month of February. This has left investors confused as what to expect from the company.
It’s getting better
BlackBerry has always been about reliability and security, which kept it ahead of others when it came to corporate clients. Of late, companies have been cutting down on the use of BlackBerry and opting for other phones. However, The Federal Office for Information Security of Germany has recently agreed on a deal to give half of its staff BlackBerry again. Such a deal will definitely not boost revenue and profit, but it shows that the company is still respected when it comes to security of your information, and new contracts might follow soon.
The company is placing its strategy right, as it is not looking for short-term profitability by trying to grab higher margins on the sale of its phone, but is being far-sighted by trying to reclaim the lost market share. The growth in the company’s market share makes it evident that its plans are delivering. Once the mobile users are satisfied with the phone and services, it can charge higher fees and users will not mind paying extra.
Competition upfront
A smartphone without a stellar OS to back it up is nothing better than any ordinary phone. Android and Apple’s iOS have a plethora of app offerings to support their high-end phones. Moreover, to Samsung’s advantage, it has an operating system on its devices for free. This gives it the advantage to focus exclusively on hardware production from the time they happened to use Android. On the other hand, Apple Inc. (NASDAQ:AAPL) and Research In Motion Ltd (NASDAQ:BBRY) both have to face the strain of developing revolutionary software.
Samsung sells the most number of phones across the globe and dominates the smartphone market. The company’s launch of the “Galaxy S IV” apparently has the software that will outweigh the hardware. The Galaxy S IV should have the “Eye scrolling software” which will be clear only once the conference is held this week. The “Eye scrolling software” will automatically move to the next paragraph as the reader’s eyes reach the bottom of the screen. This phone is well awaited, and should be strong competition and might even sweep competition.
Apple Inc. (NASDAQ:AAPL), currently, is much better placed than BlackBerry, and its brand image is very robust at the moment. The company, too, will be coming up with another version of iPhone later this summer and till then it can enjoy its dominance in the tablet market and a strong hold in the smartphone segment too.
Nokia Corporation (ADR) (NYSE:NOK)’s smart strategy
Nokia Corporation (ADR) (NYSE:NOK) at present cannot compete with Apple Inc. (NASDAQ:AAPL) and Samsung in the smartphone market, especially in North America, and it is clearly evident from a modest response of Lumia phones in that region. The company has come up with Lumia 520 and Lumia 720, two lower-end moderately priced models of its flagship Lumia 920. I believe this is a good move so as to benefit from the transition in the market from featured phones to smartphones.
Moreover, Nokia Corporation (ADR) (NYSE:NOK) has always been a brand of the masses in India, Pakistan, China, Sri Lanka, and Bangladesh, where it is considered as a strong brand. The company’s strong presence, robust image and smart pricing should attract customers towards its smartphones in these markets. It might have to shrink its margins a bit, but the huge volume these developing markets offer should send its revenue north.
Final words
Research In Motion Ltd (NASDAQ:BBRY) is a broadly recognized brand across the globe with a set of extremely loyal customers. It has strong plans for the future, but is still a speculative buy at the moment. Nokia Corporation (ADR) (NYSE:NOK) too is regaining its luster and is trying to play volume by going for economical phones while trying its hand in the developing economies. Both these companies can possibly be the great turnaround stories of tomorrow.
The article Can BlackBerry Rise Like the Phoenix With the Z10? originally appeared on Fool.com and is written by tarun bachhawat.
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