BlackBerry Ltd. (O:BBRY) had an incredible day on Friday and while the company has struggled over the years, I believe that we’re seeing the beginning its rebirth. Today, we’ll talk about why the company’s stock has fallen so far and note two reasons why it’s worthwhile to be bull BlackBerry.
Why BBRY Has Had Such A Rough Time
At one point years ago, BBRY was on top of the world. It’s arguable that the company was the driving force of innovation in the smartphone industry. In fact, when BlackBerry smartphones first came out, everybody wanted one. In fact, they were a must for business professionals and students alike. However, as the smartphone industry evolved, BBRY started to lose its edge. Soon enough, Android and iOS proved to be the smartphone operating systems of choice. Unfortunately, BBRY was left in the dust. Soon the company’s market share in the smartphone industry fell to under 1%. Nonetheless, BlackBerry is likely headed back up and here’s why:
Reason #1 BlackBerry Is Likely To Climb
There’s no denying the fact that BlackBerry’s QNX operating system failed miserably. However the company is using the OS to carve out a niche just for itself. That niche is one that neither Apple (O:AAPL) nor Alphabet (O:GOOGL) has ant traction and will likely prove to be incredibly popular. So, what's the niche? It’s the Internet of Things (non-smartphone devices). BlackBerry has been landing big deals that will allow it to be the primary operating system for the Internet of Things. So, how is the QNX OS being used? Here’s a few ways…
- Car Infotainment Systems – One of the biggest ways the BBRY QNX operating system is being used is in automobile infotainment systems. In fact, BBRY has already landed contracts with companies like (MI:BMW), Mercedes-Benz, General Motors (N:GM), Ford (N:F), Toyota (N:TM), Hyundai (DE:05380), Honda (N:HMC) and Audi.
- Traffic Signals – It may be surprising to hear, but BlackBerry’s QNX operating system also runs traffic systems thanks to a deal it has with SWARCO Worldwide.
- The Medical Industry – Another area where BBRY QNX OS is being used is in medical systems. Through the operating system, there is a Bluetooth solution for industrial automated machines and medical equipment.
So, while BBRY may have failed miserably when it comes to cell phone operating systems, the company is taking the lead with regard to operating systems for the Internet of Things.
Reason #2 To Be Bullish BBRY
Another factor that’s likely to send BlackBerry up in a big way is the fact that the company has swallowed a bitter pill and released a new line of phones. Instead of using its own operating system, the new line of BBRY phones is powered by Android. Because of the popularity of Android, this is leading to massive increases in the sales of BBRY smartphones.
The Bottom Line
While BlackBerry has had a rough time, the company is going to climb in a big way from here. Things are finally starting to come together for both its smartphone business and its QNX OS. While the two may not be directly intertwined, they are becoming popular in their own ways. And that will lead to big profits in the long run.