If you were born in the 90’s and grew up in the 0’s, Blackberry probably used to be your dream phone. Long before iPhone claimed the throne, Blackberry used to be the premium smartphone brand that everyone lusted for. Blackberry debuted 18 years ago. Blackberry was beautiful, premium, graceful and had an executive feel.
Blackberry, One of the Biggest Phone Company of 2010
In 2010, Blackberry was reported to hold third of the smartphone market in the United States of America but by 2016, Blackberry had no more than 1% of the United States’ market. During September 2013, Blackberry sold a recorded 83 million devices. The number gradually declined to 23 million in 2016. Unavailability of applications and limited support turned the users away from Blackberry and onto other convenient smartphone brands such as Apple and Samsung.
Blackberry to Make a Comeback
Blackberry may have gone extinct in terms of smartphones but Blackberry is definitely making a comeback in technology arena as a software company. Reports show a 12% increase in shares over quarterly profits. Analysts had not expected revenues to increase more than 220 million dollars but Blackberry quite astonishingly reported a revenue of 249 million dollars, now that’s an amazing comeback for a company that nearly went extinct. Before John Chen’s joining as a CEO, the company was in no position to re-establish its brand name that once controlled the smartphone market.
The Canadian company suffered a lot monetarily ever since it was kicked out of the smartphone race and faced heavy revenue issues. Thanks to John Chen, Blackberry not only increased its revenue but also smashed the expected revenue barrier. The revenue had declined for the past 7 years and reported a loss of 327 million dollars last year. Struggling to keep its head above the water, Blackberry sold software to government and for self-driving vehicles.
Wall Street Talks about Blackberry’s Market Shares
Thanks to John’s strategy, the company is now heading in the right direction. According to Wall Street, the Blackberry shares started at 9.90 dollars per share and reached a maximum of 10.79 dollars on the same day. Moreover, Blackberry also reported a gross margin of 76% as compared to 62% previous year and 67% previous quarter. Things are seeming good for Blackberry.
Why Choose Blackberry?
Blackberry will provide software for self-driving vehicles and entertainment generally makes 1.50 to 5 dollars each vehicle. John expects that with further advancement in self driving vehicles, Blackberry may make 5 to 25 dollars per vehicle. Blackberry now solely survives by managing phone systems but expects industrial applications to prove beneficial for the company. Blackberry now serves communications, security and enterprise software. Blackberry has a lot to catch on but how the things seem, BlackBerry doesn’t seem far away from reaching its goals and the shares of software unit have risen nearly 50% this year.
Morningstar analyst, Ali Mogharabi mentioned;
“There are some exciting growth opportunities.”
The New Contract of Blackberry
Blackberry also announced a contract with a Delphi automotive that supplies part on a software OS for self-driving vehicles. If it weren’t for the genius of John Chen, we might have never heard of Blackberry again. We hope Blackberry to triumph again in years to come.