Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Can BlackBerry Ltd. (BBRY) Take Advantage Of This Mind-Blowing Statistic?

BlackBerry Ltd (NADSAQ:BBRY)’s stock is down today about 1.6%, Wednesday the 18th, but this is nothing new for its shareholders. The company’s stock price has been suffering over the last couple of months, amidst sluggish sales and a strategic review that could include a sale of the firm, announced last month.

Today’s decline in stock price comes after the launch of a new smartphone, the Z30. With a 5-inch touch-screen, the Z30 arrives to compete with a line of large-display smartphones, like Samsung Electronics Co. Ltd. (KRX:005930)’s Galaxy S4. With this new device, the management expects to revamp BlackBerry Ltd (NADSAQ:BBRY)’s lagging sales for its latest suite of handsets, which included the Z10 an Q10 phones, both of which experienced poor sales in North America.

But, what’s really eye-catching about this release is that the event took place in Malaysia. Even further, this country and Hong Kong will be among the first markets to get the Z30, as of October 5th. But you might wonder, why Malaysia?

As it turns out, Malaysia is a market with 137% mobile penetration rate. This means that there are more phones than people, and each individual (the country’s population is 28 million people) owns, on average, 1.3 phones. That’s simply mind-blowing. In the U.S., for example, this number is only 61%.

Annamalai Muthu, managing director at BlackBerry Malaysia, said that “BlackBerry’s subscriber base in Malaysia has nearly tripled over the past couple of years”. “Malaysia’s young population offers a fertile market for smartphone makers. Also, a government-run program to boost smartphone use has helped to drive sales of mobile devices” (WSJ), and should continue to do so going forward. Finally, ease of shipping is another factor that influenced on the decision to launch the Z30 in Malaysia first.

BlackBerry Ltd (NASDAQ:BBRY)

Southeast Asia in general remains an important market for BlackBerry Ltd (NASDAQ:BBRY) as it is the only one where it still enjoys of considerable market presence and can compete with Android phones and Apple Inc. (NASDAQ:AAPL)’s iPhones. In Indonesia, for example, BlackBerry holds a leading market share, according to the research firm IDC. However, demand for full-screen smartphones still seems bigger in Malaysia.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended reading:

Donald Yacktman Explains Why Apple Isn’t As Cheap As You Think

Big Investors Are Buying ARO, NWSA and More

My Top 2 George Soros Picks

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.