BlackBerry Ltd (NASDAQ: BBRY)
BlackBerry has had an incredibly rough time in the market over the years. It wasn’t too long ago that investors were shelling out more than $100 per share to get involved in the company’s stock. However, today, the stock trades at under $7 per share. There’s a good reason for the declines though. Over the years, BBRY has lost its leadership role in the smartphone industry. In fact, by the end of 2015, the company’s smartphones accounted for about a half of 1% of the smartphones currently being used by consumers. Nonetheless, the company has made two big changes as of late that could really change the game. Today, we’ll talk about those changes, and what we can expect to see from the stock moving forward. So, let’s get right to it…
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BBRY Ditches Its Own OS
One of the big changes that BlackBerry has made recently is the fact that it has ditched its own operating system. You see, the company realized that its operating system simply wasn’t making the grade. Unfortunately for BBRY, Apple’s iOS and Google’s Android proved to be the operating systems that consumers loved. The good news is that BlackBerry knew it! As a result, late last year, the company launched a new smartphone offering known as the Priv. The Priv came with the incredible hardware and security that BBRY is known for, combined with the android operating system.
When it was time to start ordering the phones, consumers were all over them, as expected. In fact, there were so many orders for the new phones that BBRY ended up having to delay some of its shipments. With the success of the Priv, the company announced that it would be launching new phones under the same terms. In my opinion, this will lead to big gains for BBRY in the long run as they take back their piece of the smartphone industry.
New Leader Of Devices Named
On top of the fact that BlackBerry has started to create phones that run on the Android operating system, there’s another great piece of news in the devices sector of the company. Yesterday, BBRY announced that it has appointed a new leader who’s job will be to oversee the devices business. According to the company, Ralph Pini will take on the role that Ron Louks recently held. He has been named the device division’s Chief Operating Officer and General Manager. Under his leadership, we’re likely to see big changes in the smartphone sector of the company.
What We Can Expect Moving Forward
Moving forward, I have an overwhelmingly bullish long-term opinion of what we can expect to see from BBRY. However, it is important to remember that the company has its work cut out. The reality is that in order for the devices department to become successful once again, BlackBerry is going to need to win over the trust of consumers once again. This is likely to take some time, but it won’t take forever. Once consumers take notice of the top-notch quality phones the company is offering, I’m expecting to see incredible news with regard to sales. This will likely pick up revenue in a big way over the rest of the year 2016 and through the beginning of the year 2017, which in turn will excite investors. With that said, I’m expecting to see long-run gains on BBRY.
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What Do You Think?
Where do you think BBRY is headed moving forward and why? Let us know your opinion in the comments below!
[Image Courtesy of Wikipedia]