Research In Motion Ltd (BBRY): How BlackBerry Decided to Beat Apple Inc. (AAPL)

Page 1 of 2

Research In Motion Ltd (NASDAQ:BBRY)
CEO Thorsten Heins thinks the iPhone is very 2008. Over the past month, the beleaguered smartphone maker’s chief executive has been a rah-rah cheerleader, even while consumers and analysts have yet to be convinced the company has turned a corner. Now, there is something to be said for aggressively optimistic CEOs, as long as their evidence is based in reality. With a mysterious million-phone purchase and plenty of corporate grandstanding, does Heins know something about Research In Motion Ltd (NASDAQ:BBRY) that everyone else doesn’t?

Research In Motion Ltd (BBRY)

Confessions of a BlackBerry bull
Before we get to the good stuff, you should know that I’ve been a BlackBerry fan throughout its reorganization. A year ago, I highlighted the tremendous value of the company’s patents, its licensing potential, and major support for the company from Canada’s greatest investor. Things didn’t play out exactly like I imagined, though.

The more than 100% growth in Research In Motion Ltd (NASDAQ:BBRY)’s stock price over the past year was not a deep-value crisis, sell-the-conference-table price correction. Despite some very opinionated haters, BlackBerry has slowly but surely convinced enough investors and analysts that not only was the company severely undervalued in the $6-$7 range, but that this was the rebirth of a disruptive tech giant. There remain plenty today who still believe BlackBerry is doomed, but the argument is more balanced and with the support of a tremendous rally. Without much hard evidence of a rebound, though, is it too early to break out the champagne?

Anonymous donor
Though the recent turnaround was really the fruit of a multiyear effort, things have heated up in just the past couple of weeks. Yet, in typical BlackBerry fashion, it hasn’t been the most conventional path.

Preempting its own upcoming earnings release by about two weeks, Research In Motion Ltd (NASDAQ:BBRY) issued a press release regarding the sale of 1 million handsets to a “buyer,” with shipments starting immediately. It’s common for a company to keep its buyers anonymous, but this announcement was particularly vague. For one thing, it did not mention which BB10 handset (there are two: the Z10 and the Q10) was just picked to be America’s Next Top Smartphone. And given the extremely large order, it is also a total mystery as to who bought all of them. The major U.S. carriers with which BlackBerry does business – AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), and Sprint Nextel Corporation (NYSE:S) — all declined to comment on whether they had a hand in the transaction.

According to a Bloomberg report, the only carrier that did comment was T-Mobile, saying that it was excited to offer the device, but that it did not buy the 1 million phones. Corporations still use Research In Motion Ltd (NASDAQ:BBRY)s quite extensively, but very few would be distributing 1 million phones to employees. For reference, retail behemoth Wal-Mart Stores, Inc. (NYSE:WMT) employs 2.2 million people, but most of them would not be eligible for corporate phones.

Being the single largest purchase in the company’s history, the million-phone order is certainly encouraging for BlackBerry fans and investors, but it would be a little more comforting if we knew anything else about it.

iPhone sucks, BlackBerry is awesome
This week, Heins made quick headlines in his interview with the Australian Financial Review. In short, Heins believes Apple Inc. (NASDAQ:AAPL)‘s iPhone has been eclipsed by a more aggressive, more innovative global market.

I happen to agree, on a casual-discussion basis, that the iPhone has slowed down in its rock-your-socks-off features and moron-proof user experience. But these are pretty bold words coming from the chief of a company whose phones went from global dominance to near irrelevance in a startlingly short period of time.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!