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Last Ditch Effort To Save The Sinking Ship: BBRY Slashed Priv’s Price

Blackberry Ltd, Blackberry Stock, Blackberry Priv, smartphone industry, android powered smartphone, BBM, BBRY shares,

The Canadian smartphone maker is witnessed a slow year with a decline in its stock price and decline in Priv’s sale; to spice things up the company decided to slash the price of its latest android based smartphone.

Blackberry Ltd has seen a rough start to the current year as the stock of the smartphone maker has declined by as much as 21% as the company is still making efforts with a struggling hardware business. Re/Code has reported that the Canadian smartphone maker has slashed the price of its Priv, android powered smartphone to $649 while initially the phone was being sold at a price of $699.

At the time of Blackberry Priv’s launch, many had though that the price was a bit out of boundary given that it was no longer a leader in the smartphone industry nor had it ever launched a phone that was android based. However, during its initial months we believe the product did fairly well in the market, as it was sold out at most stores plus it was competing at Google’s and Apple’s level. We do believe that even this slashed in the price is not justified by the former smartphone leader; however it does put it in par with other flagship smartphones.

According to the recent earnings report, BBRY managed to sell around 600,000 units in total which is a fewer than expected number however this current price slash seems like the last effort made on the company’s part to save the sinking ship. Initially the chief executive officer John Chen had stated that in case the device fails to do well in the market, the company will exit the smartphone industry and direct its focus towards its security software.

This current situation that can be seen via the latest earnings report suggests that the handset business future and profitability seem rather grim. The CEO again mentioned last week that if the handset business did not generate profit for Blackberry, it would completely shut that division down.

Before 2007, Blackberry was one of the leading companies in the smartphone industry; everyone wanted to get their hands on a Blackberry Bold or Curve and everyone wanted to be on BBM. However, with the advent of Steve Job’s iPhone, BBRY slowly and gradually started to lose its market share. The reason for its failure in the smartphone market was mostly due to its reluctance to keep pace with competition as well as technology. But with the launch Android based Priv, the company proved that it can (after a long period of nine years) keep pace with technology and provide the customers with exactly what they are looking for.

Furthermore, in an interview with Bloomberg, John Chen stated that its latest product’s distribution model needed a revision due to which the there was a delay in the launch of the product. In addition to that he said that the organization will need to sell as many as three million units yearly in order to make the company’s hardware business profitable.

As per the recent rumors, BBRY is planning on launching two new android based smartphone in mid-price range however launch dates for these products have not been announced as yet. Since these will be mid-range priced phone, the company will need to sell extra units to cover its lower average selling price.

 

 

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Posted by on April 11, 2016 in Blackberry, Finance News

 

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Blackberry, Ltd. Witnesses First Jump Since January Thanks To Wal-Mart

BlackBerry All Set To Acquire WatchDox

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.

 
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Posted by on December 11, 2015 in Technology

 

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