Blackberry Ltd, has been trying to get back in the smartphone game for a while now and has miserably failed to do so however the future does not seem entirely bad for the tech company.
According to analysts, the success of the new Blackberry Ltd seems highly unlikely. Despite of the fact that it has been labeled as the most “android secure” phone and practically is able to manage and access Android app’s entire ecosystem, analysts did initially believe that it would turn out to be big in the market.
The sole purpose for this negative remark is because Apple, Inc.’s success in the market; as reported by Tim Cook, Silicon Valley giant’s CEO, in the fourth quarter of the current fiscal year over 30% of android users switched to iPhones. The next big company in the smartphone business is Samsung so at this point Blackberry Ltd does not even come close to being successful.
Despite all this, the reviews of the novel secured android based smartphone are quite impressive. Retailers of the device are usually sold out but the exact number of devices sold by the tech company has not been disclosed as yet. According to John Chen, the CEO of the tech company said in an interview to CNBC that the multinational company has been doing reasonably well for a financial perspective. He added that the current focus of the company is growth; they will be expanding their business. Even though they currently have high fixed costs, he stated that profitability of the new device is likely to come by 2016.
The company is expecting that the profitability will come from its handset division but the analysts remain pessimistic about it. However, there still seems to some hope for the company because of the Internet of Things (IoT). Analysts are optimistic of the fact that IoT might be what brings the former glory of the business. Since IoT will be a market worth $1.7 trillion by the year 2020, Blackberry might be able to gain some profits through it. More than 50 billion devices might be connected to IoT by 2020 which will be equivalent to over seven devices connected to one person all over the world.
The plans of the company currently are to provide security to the IoT market in the future. According to popular belief however the most profit the company is such as to generate would be through its blackberry software development. The company even launched a QNX operating system in the year 2010 which is currently being used in Ford cars that connected the vehicle to the internet. As per the recommendation, investors should start investing in the company and slowly start purchasing the shares. The company has the potential to succeed in the future but merely owing to the Internet of Things.
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