Blackberry To Face Tough Competition In 2016
The Canadian smartphone maker is prepared for a rough ride in 2016, as it might have performed well in 2015, but the current year is going to be a tough one.
After the Canada phone maker, BlackBerry Ltd., released its earnings report, a number of questions were raised. The biggest question however is whether the smartphone manufacturer will be able to maintain this momentum in 2016, which it has had after the launch of BlackBerry Priv.
The smartphone company has seen its fair share of dark and gloomy days. Since the launch of its new android powered smartphone ‘Priv’ in the market, the stock of the company has been performing quite well. It has been the redeeming quality for the organization and chief executive officer, John Chen.
After this device entered the market, the CEO stated that in case this device does not perform well, it would altogether exit the cellphone making market and focus on its other businesses. The impression created for the new product by BBRY as a must-have handheld device is quite intriguing. As for the expansion of the product, the CEO stated that he would be introducing the android operating system device in over 31 countries in a time span of three months.
As per the latest earnings report, the phone maker has sold over 700,000 units of phones altogether. The question is how many of these were Priv sales and why the management has not disclosed the number of units they have sold of their latest gadget?
The increase in share has been of 20% since the novel product but year to date performance is still down by 15%; so looking at a bigger picture, the share price is still down. However, it beats analysts’ estimates of $489 million in revenue when the actual revenue came in at $557 million, whereas the loss per share was $0.03. It managed to outperform the calculation of experts of the loss per share as well, since the estimations suggested that it would be -$0.14 per share.
Despite of the fact that Priv has performed comparatively well since its launch, in the current year, all the smartphone market leaders, including Apple, Samsung, and LG are all set to launch their latest phones due to which BlackBerry is going to see some tough competition. Priv has been marketed as one of the elite phones and has been priced at $700. The sales of the device will slow down once these latest versions start pouring out.
BlackBerry’s management is striving to retain its position in the market. The new year brings new challenges while rivals are all set to launch their own smartphones.