BlackBerry As We Know It Has Failed. So What’s Next?

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Hearing the news that the BlackBerry Ltd. share went soaring higher than expected and gained the biggest in a day on the stock market; the news was that BlackBerry Ltd. had signed a deal with the Taiwanese firm Foxconn, a company best known for putting together iPhones.

Before the advent of smartphones from Apple and Samsung, BlackBerry Ltd. had once been at the top of its product line, but the good days for the company seem like a far-fetched dream for now.  The company reported a massive $4.4-billionloss in its fiscal third quarter and a 56% drop in revenue in its first quarterly report under new Chairman and Chief Executive John Chen.

But there are still ways which can spark a turnaround in the company’s fortunes.

1.  Blackberry Ltd. chief has been replaced by John Chen, CEO of Sybase, Enterprise software and services company. Chen had revived Sybase before the company was sold to SAP AG. In his first letter to the employees, he has stated that the tag For-Sale recently associated with BlackBerry Ltd. has been removed and we will work on the future. In his letter, Chen has given the impression that BlackBerry Ltd. will return the focus on core consumers i.e. Government and enterprise users.

2.  BlackBerry has joined hands with Foxconn, Apple supplier and one of the largest electronic manufacturers. Foxconn will manufacture Blackberry phones in their Mexico and Indonesia facilities. The move was on the cards for quite some time as at some point in time, it would not have been economically viable to produce handsets in such small quantities. The quality and other parameters will be managed by BlackBerry through Foxconn.

3.  BlackBerry Ltd. latest smartphones Z10 , Q10 with BES10 have received approval to operate on United States Defense networks. Blackberry is the first Mobile Device Management service that has been approved to run on the Pentagon network.

4.  Foxconn will also take some of the BlackBerry handset design duties. They are actually looking to design a smart phone for Indonesia, which has been the only market that has always fetched them good returns. This move can also reduce the inventory losses which right now sum up to around a billion.

The plight was that BlackBerry Ltd. was certain that no other company could reach where they had and didn’t pay any heed until it was too late. BlackBerry Ltd. is far behind Apple and Android in consumer market. It should first focus on the core areas such as security, enterprise services, and then try to come up with a strategy for the consumer market. We have seen the biggest of companies fall because they think they are no more in the race. As a result, once the indispensable accessory of the business class now has to re-gear  their business to be in business.

 

Category: Business, Technology 6 0

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