The retail giant Wal-Mart is stocking the new Blackberry Priv in its stores; proves to be beneficial for the tech company.
A technology industry website earlier reported that the Blackberry Priv is being sold at Wal-Mart Store, Inc. due to which the Canadian company has jumped the most since January 2015. The tech company had launched its latest device last month and is not being sold by AT&T, Amazon.com, Inc. along with BB’s own website, as the news of Wal-Mart selling the smartphone came out; the stock of the tech giant saw a significant increase.
After the news broke, Blackberry stock saw in increase of 11% bringing the price per share to $8.15 in New York. The tech giant is now working on moving away from gaining revenue through selling smartphone towards generating revenue from selling software. The Canadian technology corporation has always sold smartphones that run on its own personal operating system but the new Priv has Google’s android powered operating system due to which the company is better able to attract new customers and gain the reputation that it initially had in the smartphone market. Customers prefer android operating system nowadays mainly because the applications and the features available of those smartphone is something which they don’t find elsewhere.
In Wal-Mart Stores all across the United States currently the Blackberry Priv is listed as “Out of Stock” according to the company’s website. The new product has been put at a price tag of $699 and at this point any blackberry representative had declined to comment on the sales of the product.
Despite of the fact that the novel Priv smartphone is comparatively doing well in the market, there are a number of other factors that the company and its management will need to take into account. According to the data, in comparison to the previous quarter smartphone sales have seen a decline of more than 50% to $201 million. John Chen, the chief executive officer of BBRY stated that regardless of the Priv sales he has planned on discontinuing the sales of smartphone or any such devices as realistically, the company will need to sell as many as 5 million phones a year to reach its break even value. He further added that with this current scenario there is no way he can make the device selling business profitable at this point.
The Waterloo, Ontario based corporation will release its earnings report on December 18, 2015. The current EPS of the corporation that was reported is -0.05 with a market capitalization of 3.87 billion. The one year high of the company was registered to be $12.63 and the one year low was $5.96. The number of shares in Blackberry presently are 525.65 million.