Research In Motion Ltd (BBRY): Would Blackberry Regain Its Lost Glory?

Page 1 of 2

The company formally known as Research in Motion Ltd (NASDAQ:BBRY) held a public event on January 30 and announced a name change for the company to Blackberry. In addition, they launched of a new operating system for Blackberry phones and 2 new phones, the Z10 and Q10. This is seen as a last attempt by the struggling phone manufacturer to regain the market share it once had, and then lost to other competitors like Apple Inc. (NASDAQ:AAPL), Nokia Corporation (NYSE:NOK), and Samsung etc. globally.

BlackBerry Ltd (NASDAQ:BBRY)Declining stock price and market share

In the early years of this century, Blackberry phones were considered the symbol of corporate glamour and were a prerequisite for the most dynamic industries like Investment Banking etc. Enterprise activation for Blackberry is supposedly one of the most secured networks and data integrity is almost absolute. Besides, their messenger service (popularly known as BBM) was one of the pioneers in the field of social networking. As a result, their market audience was spread across 2 different categories: 1) the corporate individual who would need access to office mails on the go and 2) the young generation who would share messages, pictures, songs, etc. through the messenger service. Blackberry saw huge increases in their annual numbers due to the increasing demand in developing countries and the emerging economies like India, China, Brazil, etc. However, demand slowed down considerably in the US and top European countries.

The only reason for the lack of growth from the developed countries was that the company failed to upgrade its products in line with the ever changing technology. Other competitors raced ahead on account of better quality products offering better features and enhanced user experience. The market share of Blackberry phones started to decline from ~20% in 2009 and have been on a constant decline over the past couple of years to ~5% now as they failed to adapt themselves to the changing market requirements. Luckily for them there was some demand from the emerging markets for the lesser priced phones, and hence they were able to manage some additional sales. On account of all this, the stock price has been going down over the last 5 years and touched an all-time low of $6.22 sometime in the month of September 2012. The company’s management decided to undertake a slew of measures to prevent its downfall. As a result the company axed a few jobs as well to reduce costs and achieve operational efficiency. On the offerings front, a decision was taken to upgrade the operating system so as to include new features and release new versions along with new phones in 2012. However, the product launch has been continuously delayed over the last few months which have further resulted in loss of confidence amongst the Blackberry users and the investor community.

What’s New?

Blackberry finally announced the launch of a new operating system Blackberry 10.0 along with 2 new phones. In terms of configuration both the phones are at par (if not better) with some of the highest selling phones in the market. Operating system 10.0 has better features like Blackberry Balance that acts as a perfect balance between the personal and official enterprise applications. Efficient multi-tasking (Blackberry Peak) and more secured enterprise activation are added benefits along with an appstore with 70K upcoming apps for usage.

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 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!