BlackBerry Ltd (NASDAQ:BBRY)
BlackBerry is having a rough time in the market today. However, based on fundamental news the company released, the stock may see strong upward movement soon. Unfortunately, we’re not seeing that reaction today as a result of economic concerns leading to market-wide declines. Nonetheless, today, we’ll talk about the news that was released and why BBRY likely has a strong future ahead.
BBRY To Discontinue It’s Classic Smartphone
The classic BlackBerry smartphone was what put the company on the map. However, the company announced today that it would be discontinuing the product. Unfortunately, over the years, the product has moved far away from profitable. However, at the end of the day, the discontinuation is great news. Recently, Ralph Pini, COO and General Manager of Devices at BBRY published a short blog post to explain the discontinuation of the product. Here’s what he had to offer in the post…
“Sometimes it can be very tough to let go. For BlackBerry, and more importantly for our customers, the hardest part in letting go is accepting that change makes way for new and better experiences.
When I took on the role as the GM for Devices, I spoke about three critical elements for the success of our devices business. First was expanding choice for customers. Second was leveraging our unmatched experience and capabilities in security. Third was building on the BlackBerry pedigree.
These are the tenets that help keep us focused and the reasons why we are committed to the success of both BlackBerry 10 and Android devices. To keep innovating and advancing our portfolio, we are updating our smartphone lineup with state of the art devices. As part of this, and after many successful years in the market, we will no longer manufacture BlackBerry Classic. For many years, Classic (and its BBOS predecessors) has been in our portfolio. It has been an incredible workhorse device for customers, exceeding all expectations. But, the Classic has long surpassed the average lifespan for a smartphone in today’s market. We are ready for this change so we can give our customers something better – entrenched in our legacy in security and pedigree in making the most productive smartphones.
For now, if the Class is still your device of choice, please check with your carriers for device availability or purchase Classic unlocked online. We continue to actively support BlackBerry 10 with software updates and are on track to deliver version 10.3.3 next month with a second update to follow next year.
I’m excited for what’s to come and looking forward to giving you a new and better experience.”
Why This Is Great News For The Stock
BBRY has long struggled in the market since it lost control of the smartphone industry. Unfortunately, at this point, the company only holds less than 1% of the market share, and needs to work to improve this. While BlackBerry Classic was once a very popular phone, that’s not the case anymore. Today, the product costs more than is worth maintaining.
Nonetheless, this opens the door to focus on new, bigger, and better things. In fact, the launch of the BBRY Priv went incredibly well. This showed that if the company focused its efforts on taking advantage of the popular Android operating system, sales would likely climb. Now, the company is working on 3 new phones that run on the Android operating system, and I’m expecting these to be popular.
At the end of the day, as the company makes the shift to creating newer, and better phones, we’re likely to see handset profitability down the line. This should lead to big gains in the long run.
What Do You Think?
Where do you think BBRY is headed moving forward and why? Join the discussion in the comments below!