BlackBerry Limited Cooking Something Up in Waterloo
In the age of Apple Inc. and Samsung Electronics Co. Ltd., BlackBerry Limited (NASDAQ:BBRY) offers its users something that is far more promising. CEO John Chen is right on track to turn around the company as he takes some solid steps to make the company profitable by 2016. Here’s why I believe BBRY stock may be a dark horse in disguise.
Another BlackBerry Phone Coming?
Rumor has it that another Android-based BlackBerry is in the making. The phone is being dubbed “Vienna” and is touted to have a slick rectangular shape with a fixed keyboard like the older BlackBerry phones. (Source: “First look at the BlackBerry “Vienna” – the company’s second Android phone!” CrackBerry, November 11, 2015.) If these speculations are correct, this might hint at the company’s success with the latest Android-based BlackBerry, the “Priv.”
The company hasn’t released any official numbers on the Priv’s initial sales. This makes one skeptical if the sales were as robust as was expected. However, if the company is going ahead with a new installment in the “Android” series with the rumored Vienna, it suggests the company must have had good sales reception to its first Android phone. Otherwise, why would it create a second phone? So what’s that one thing that could be driving sales for BlackBerry amid stiff competition?
One thing that sets the BlackBerry Priv apart from any other smartphone, be it an “iOS” phone or an average Android phone, is its security features. Personally, I’ve always preferred the Android user interface (UI) over iOS, because I find Android to be more fluid and a lot easier to handle. I’m certain Apple fanboys will disagree with me, but to each their own.
Regardless, in the Android space, which currently makes up 80% of the world market share, finding a secure smartphone is almost like looking for a needle in a haystack. Cybersecurity threats and user data breaches have had many mobile users worried. In times like these, BlackBerry is delivering a blessing with the Priv. In fact, the company is so huge on security and user privacy that it actually took the name of its latest phone, “Priv,” from its key feature: privacy.
Recently, big news has hit BlackBerry that has further strengthened my trust in the company as the most secure platform to use. The company’s “BlackBerry Enterprise Management” (BEM) service is considered the most secure e-mail and messaging server, which is why so many heads of states have historically held BlackBerrys. Lately, Pakistan’s telecom authority has asked for access to BEM’s secure server that will allow it to monitor data on all the BlackBerry phones in Pakistan. (Source: “BlackBerry Exits Pakistan to Avoid State’s E-Mail Monitoring,” Bloomberg, November 30, 2015.)
BlackBerry was faced with the dilemma to either give up the access or be driven out of the country. It’s worth appreciating that the company management has decided to go with the latter option. By refusing to give up the access, the company may have put its business operations at stake but, in turn, it has taken a stand for its users who blindly rely on its services and promises of privacy.
The Bottom Line on BlackBerry Stock
BlackBerry chief John Chen has promised to give up on the hardware business if he is unable to return profits to shareholders by the end of next year. The fact that the company might be deciding to go ahead with another Android phone makes me optimistic that Priv delivered on its promise. Additionally, BlackBerry management’s latest move in Pakistan reflects positively on the company’s security policy and commitment of fiduciary duty to its BEM users.
In a nutshell, BBRY stock is one investment I’m bullish on.