If you think BlackBerry Ltd (NASDAQ:BBRY) stock is over, think again. Sure, the company’s smartphone business is not what it used to be. But with the launch of the “BlackBerry Priv” and its move to the “Android” operating system, the company might be able to get back up again. The key to BlackBerry’s success is obvious—mobile security.
This Could Be Huge for BBRY Stock
You see, mobile phones are much more than talk-and-text devices these days. People today perform a variety of tasks on their smartphones, including online banking. If hackers manage to get into our phones, there will be serious consequences.
But isn’t BlackBerry ditching its BlackBerry OS and migrating to Android? Well, that’s true. Due to the tiny market share of BlackBerry’s own mobile operating system, the company has decided to move to Android with its latest smartphone, the BlackBerry Priv. However, that doesn’t mean all the robust security features of the old BlackBerry OS are gone. In fact, security is one of the main selling points of the Priv.
Before we go into the details, let’s give the company some credit for making the shift. According to Statista, the global market share of BlackBerry OS has dropped to just 0.2% in the fourth quarter of 2015. If BlackBerry were to continue with its own OS, it would fall into a vicious cycle: developers would be reluctant to make apps for an OS with such a tiny market share and consumers would be unwilling to use the OS due to the lack of apps. (Source: “Global Market Share Held by the Leading Smart Phone Operating Systems in Sales to End Users from 1st Quarter 2009 to 4th Quarter 2015,” Statista, last accessed March 17, 2016.)
By running Android on the Priv, BlackBerry broadens its product appeal. It’s easy to use and has all the great apps, just like any other Android phone. Moreover, it still has BlackBerry’s signature full QWERTY keyboard, so BlackBerry fans will have a reason to stick around.
The best part is that the Priv might just be the most robust Android phone when it comes to mobile security.
Each month, Google releases a security bulletin outlining all the latest safety and privacy issues facing the Android operating system. Device makers have taken days, weeks, months, or even years (if ever) to patch their devices. But since the launch of the Priv, BlackBerry has always been the first to send out a patch addressing all the flagged vulnerabilities. Moreover, BlackBerry did all this within 24 hours of the bulletin’s release every single time. (Source: “Beating Expectations: Android Security Patching for Priv,” BlackBerry’s Official Blog, March 11, 2016.)
“Other mobile device vendors can take weeks, months or even years to deliver security patches, leaving you and your business at risk,” said David Kleidermacher, chief security officer at BlackBerry. “BlackBerry’s steadfast commitment to timely security updates is just one of the many reasons why BlackBerry continues to be the undisputed leader in mobile privacy and security.” (Source: Ibid.)
The Bottom Line on BBRY Stock
When it comes to mobile security, BlackBerry does not disappoint. Moreover, the company also has a booming software segment. Its device management business could also get a huge boost from the upcoming “Internet of Things” (IoT) revolution.
Add it all up and you’ll see that BBRY stock is far from over.