After years of being pounded in the smartphone space by the likes of Apple Inc. (NASDAQ:AAPL) and Samsung, BlackBerry Ltd (NASDAQ:BBRY) might finally be finding its way in the space with the unveiling of the new Classic smartphone. During an interview on CNBC, technology analyst Colin Gillis, reiterated that BlackBerry Ltd (NASDAQ:BBRY) could record impressive sales with the new model, having improved on previous faults, which should attract more sales.
“If you like the keyboard and you liked BlackBerry Ltd (NASDAQ:BBRY) this is a fantastic phone for you. They sold over 15 million handsets in 2011. They sold 49 million phones in 2012 and even in their last fiscal year which was a tough one it was 13.7 million handsets,” said Mr. Gillis.
With less than 1% of market share in the smartphone space, BlackBerry will look to tap into customers who bought previous models if it is to recoup a substantial amount of earnings in terms of sales. It remains a big challenge for BlackBerry Ltd (NASDAQ:BBRY) to attract the attention of the young people who have resorted to using the likes of iPhones and Galaxies.
Gillis notes that the new Classic phone comes with a 3.5 inch screen, with a 50% improvement on battery life, as well as super-fast internet connection capabilities. The analyst remains confident about the company’s prospects going forward, having experienced one of the toughest last quarters, where the company didn’t unveil any product.
“John Chen is doing a fantastic job he is on point; this management team is on point. […] I only had to lift my assumption for the amount of cash on their balance sheet that they are not going to burn because they have done such a good job of cutting costs to get to my $12.50 price target,” said Mr. Gillis.
The release of the Passport smartphone that also has a physical keyboard has shown that BlackBerry Ltd (NASDAQ:BBRY) remains focused on its hardware business, contrary to opinion. Marketing of the new phone is expected to be a big challenge as more people continue to prefer iPhone 6, which is seen as a superior product in terms of current market standards.
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