BlackBerry Ltd (NASDAQ: BBRY)
BlackBerry has had a rough time in the market over the past few years, there’s no denying that fact. However, things seem to be changing – and in a big way. In fact, there have been several good bits of news from the company over the last several months. So today, I’m going to outline 3 big reasons that I believe BBRY is likely to climb.
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Reason #1: Moving Handsets Away From QNX And Onto Android
BBRY was once on top of the world when it came to the smartphone market. In fact, it can be argued that BlackBerry was the primary driver of innovation in cell phones, creating the smartphone market entirely. However, as smartphones became more popular, more and more companies wanted to get in on the trend. This is where the problems started for BBRY. After all, when they first got into the industry, there was no competition. Soon, other companies were offering smartphones that had better operating systems. Android and iOS became the popular operating systems and BBRY fell to less than 1% of the market share in the smartphone industry. However, last year, the company swallowed a bitter pill and made a big change. Instead of using their own QNX operating system, they decided to make a smartphone known as the Priv. This phone would include the incredible hardware and security that BlackBerry is known for with the overwhelmingly popular Android operating system. The phone was a hit! In fact, pre-orders were so large that shipments were delayed! Now, the company is working on a line of Android-operated phones. In my opinion, this will lead the company to smartphone profits once again!
Reason #2: Priv Adoption By Carriers
The first carrier to adopt the Priv was AT&T. However, that’s not the only carrier that plans on pushing the Priv. In fact, it was just announced today that Verizon Communications has started to offer the Priv as well. Currently, if Verizon customers want the Priv, they’ll need to order it online. However, Verizon does plan on offering the BBRY Priv in select physical stores starting on March 11th. The company will be selling the Priv with a retail price of $720. However, customers can also choose to pay installments of $30 per month. As mentioned above, I’m expecting the Priv to lead BBRY back into smartphone profits. As more and more carriers decide to offer the phone, this expectation becomes validated.
Reason #3: Phones Aren’t The Only Profitable Option For BBRY
When we think of BlackBerry, the first thing that comes to mind is smartphones. However, the company has much more to offer than smartphones, and it all boils down to QNX. You see, the QNX operating system wasn’t a good fit for smartphones, we know that. However, BBRY has carved out its own niche with the operating system. In fact, QNX is currently being used to power traffic signals, automotive infotainment systems, medical equipment, manufacturing equipment, and much, much more! Ultimately, QNX may not have been profitable in phones, but the operating system is helping to power the Internet of Things, and that is leading to massive amounts of revenue!
The Bottom Line
The bottom line is that BBRY is a great company. While the company has struggled in the past, they are making their way back to the top, not only in the smartphone space, but in the Internet of Things – one of the largest emerging industries! All in all, I’m incredibly impressed with BBRY and expecting to see massive gains in the stock moving forward.
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What Do You Think?
Where do you think BBRY is headed moving forward? Let us know your opinion in the comments below!
[Image Courtesy of Wikimedia]