Priv Sales Could Send BBRY Stock Soaring
Once the hottest tech stock and one of the most profitable companies in the trade, the Canadian phone and enterprise services company BlackBerry Limited (NASDAQ:BBRY) met with its worst fate in the last five years, as the Apple “iPhone” phenomenon took over the world. The good news is that the worst is finally over now. BBRY stock is making a comeback on some great news and I strongly believe the rally is in for good.
BlackBerry’s latest phone, the BlackBerry “Priv,” appears to have been sold out among big retailers. Wal-Mart and Best Buy are reporting the device to be out of stock on their web sites. Earlier last month, Amazon.com reported the device to be out of stock within hours of its release. The company itself had run short on Privs on better-than-expected pre-orders last month.
Case in point: Priv’s demand has far outpaced the company’s initial expectations. The Priv is finally proving to be the stepping stone that will allow BlackBerry to hop over to the other side of the turbulent smartphone stream.
Understandably, the device is enjoying solid demand. For the features it houses, the device is priced at a modest $699.00. I say “modest,” because when you compare it with the latest “iPhone 6” and “iPhone 6 Plus,” which are respectively priced at around $800.00 and $1,000, or even the “Samsung Edge Plus” at more than $780.00, the Priv is cheaper, yet it offers competitive features.
This rightly-sized Android device offers both the options of a touchpad and a keypad, a nice 18 megapixel camera, and the added feature of security. Even with the slide-out QWERTY keypad, the device is super thin, giving it a stunning, slick look.
BlackBerry has also moved fast in launching the phone in the international markets, where it might be able to drive stronger demand than domestic markets in North America. Since its release in November, the device has made it to Hong Kong, Singapore, Vietnam, and Malaysia.
After the departure of its founders and CEOs—whose hubris was partially responsible in taking down the company—BlackBerry has been working hard on a turnaround under its new CEO, John Chen. From renaming to rebranding itself, the company has come a long way in the last five years. The biggest change the company underwent under Chen was giving up on the fundamentals that granted it dominance in the pre-Apple era—that is, giving up on its operating system and moving to the now more popular “Android” platform.
Chen promised stockholders that should the company not be able to turn profitable in its hardware business, the company will bid adieu to it. Turns out, his efforts are finally paying off. Despite all the negativity surrounding its weakening foothold in the smartphone world, Chen’s resilience has kept the company afloat.
The Bottom Line on BBRY Stock
John Chen promised earlier this year that he’ll make the company’s hardware business profitable by 2017. Next year is particularly crucial for the company, but if the sales remain buoyed over the bare minimum the company has set for profitability, we’ll soon be seeing bottom-line numbers in green. With Chen’s efforts evidently bearing fruit, I believe he’ll make good on his promise. The Priv will become BlackBerry’s next big growth driver.
Rest assured, BBRY stock investors could very well be in for promising gains.