Blackberry Ltd Shows Signs of Recovery
The Canadian based smartphone maker’s service and software business has been doing well and is expected to grow in the future.
There was once a time when Blackberry Ltd reached a pinnacle of success in a very short time span but unfortunate for the Canadian smartphone maker it lost its ground to the popularity of Apple’s iPhone and Samsung Electronics’ android based phones.
Despite of not wanting to get be a part of the android family, the smartphone maker launched its first ever android powered smartphone, Priv. It is debatable whether the latest product will be able to bring back the days of fortune for the Canada based smartphone maker. However many believe that it would be too good to be true if that even happens.
Presently, Blackberry Ltd is in a transition phase where it is getting a chance to explore more opportunities for long term growth however many skeptics believe that the popularity of the Priv is not sufficient enough for growth in the long term. The spotlight is not on the smartphone maker right now which is great for John Chen, the chief executive officer of BBRY and his team as it would become difficult for them to work under the pressure of analysts and shareholders.
BBRY stock has fallen by as much as 22% since the beginning of 2016 but the aggressive expansion strategy by the company has proved to be beneficial as due to the plan it has managed to make its latest smartphone available in a number of foreign markets in a short time span. The CEO John Chen has initially stated that the company would consider leaving the smartphone market altogether if the division does not manage to generate profits. The latest product has proved to be quite a successful one because of which they have decided to introduce newer versions of android based phones during the year.
Blackberry lost its touch back in 2011 and since they has cut down its workforce by more than half as its current employee count stands at 6225 which was initially at 20,000 employees. Furthermore, earlier in February the business let go of over 600 more employees in Ontario and Florida and as per the rumors these cuts were made mainly in the company’s in-house software development division. The company did not mention which department lost the most employees but the guy who made the BBM — Blackberry Messenger, Gary Klassen’s departure came as a shock to a number of people.
The success of the latest device is quite commendable but a number of other technology companies have adapted to the change while BBRY still needs to realize that it will need to fit in with today’s innovation technology — because ultimately that is what the consumer wants. The organization is off to a good start but it’s yet to see whether it will be able to carry on the momentum.
As per the earnings report for the third quarter, the company earned revenue of $154 specifically from software and service. The business has decided to acquire Good Technology and AtHoc which will largely contribute to the software business. The increase in revenue from the Software division is likely to grow in the future as well.