Yet 1 More Piece of Bad News for Research In Motion Ltd (BBRY)’s BlackBerry

Research In Motion Ltd (NASDAQ:BBRY)’s BlackBerry is the middle of revamping its band, launching a new OS and introducing two new phones. But the company is losing steam with its core customer base — businesses — and the blows just keep coming. Poison berries The past few years haven’t been kind to BlackBerry. Three years ago the company was sitting on top of 50% of the U.S. smartphone market share ­­– now it has just 1.6%. For the past few years businesses have moved away from BlackBerry phones and opted for iPhone or Google Inc (NASDAQ:GOOG) Android-based devices.

Earlier this week, The Home Depot, Inc. (NYSE:HD) became the latest defector to announce it’s dropping BlackBerry in favor of iPhones. The company will transition 10,000 executives and managers to Apple Inc. (NASDAQ:AAPL)‘s iOS in the coming months. The day the announcement was made, BlackBerry’s stock dropped about 4% during trading.

Research in Motion Ltd. (BBRY)Home Depot is now part the growing number of businesses that have given up on BlackBerry and switched to Apple or Google. A 2011 iPass report showed that in the same year, a majority of businesses traded in their BlackBerry phones for iPhones.

Two years later, the iPhone continues to snag more businesses, and even federal agencies. The Bureau of Alcohol, Tobacco and Firearms and U.S. Immigration and Customs Enforcement Agency have both recently switched from BlackBerry to the iPhone. The U.K. government has also approved the iPhone for government employees. A report by IDC says the iPhone will far outpace both Android and BlackBerry phones in the enterprise sector by 2016.

Too soon, or maybe too late

Last year, BlackBerry CEO Thorsten Heins made it clear that the company was committed to developing products specifically for businesses. He said in an interview back in March 2012:

We plan to refocus on the enterprise business and capitalize on our leading position in this segment. We believe that BlackBerry cannot succeed if we tried to be everybody’s darling and all things to all people. Therefore, we plan to build on our strength.

BlackBerry just released two new phones, the Z10 and Q10, along with its completely revamped OS. With all the changes at BlackBerry, including its name, maybe businesses have jumped the gun and haven’t given Blackberry a chance to show what it can still offer the business world. The problem is that when businesses drop BlackBerry, it could take years before they’re willing to spend the time and money to even consider switching back. BlackBerry may not be able to wait that long.

On right path, but in the wrong direction

BlackBerry’s new operating system and new phones are aimed at winning back businesses, but that may not be enough for consumers (or investors). The company’s new OS has received positive reviews, but the current version isn’t likely to bring back BlackBerry’s market share. The IDC expects Microsoft Corporation (NASDAQ:MSFT) Windows Phone OS to overtake BlackBerry’s No. 3 spot in operating systems beginning this year and to hold that position despite BlackBerry’s overhauled system.

If that storyline plays out, and BlackBerry can’t regain significant market share, new phones and a brand-new OS won’t matter that much. BlackBerry’s facing an uphill battle and the only way it can win is by quickly earning back business customers. Investors need to see the tidewaters shift from enterprise purchases of iPhone and Android back to BlackBerry — which is a very unlikely scenario.

The article Yet 1 More Piece of Bad News for BlackBerry originally appeared on Fool.com and is written by Chris Neiger.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple, Google, and Home Depot. The Motley Fool owns shares of Apple, Google, and Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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

The 10 Biggest Airports in the World

The 5 Most Gang Infested Cities In America

The 34 Smartest Countries in the World

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

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!