BlackBerry (formerly Research In Motion) used to be the number one smartphone company.
For the longest time, every business person in the world owned a BlackBerry. People were so addicted to the tiny keyboards and 24/7 mobile access to their email that BlackBerries earned the name “Crackberries.”
When iPhones and Android devices came onto the market, however, most smartphone users ditched their BlackBerry devices in favor of more capable, powerful phones. iPhones and Android phones (like the Samsung Galaxy S series) also attracted new customers who previously showed no interest in BlackBerries. Thus, the company’s market share dwindled over time to less than 1% of all existing smartphones, a far cry from being the smart phone company.
BlackBerry recently stopped making phones altogether.
The company now licenses out the creation of BlackBerry devices to TCL, who will create Android devices using the company’s name. TCL is already semi-popular in the U.S. for their creation of low-budget televisions, but they’re on target for shipping tens of millions of their phones this year.
Now, BlackBerry is focused on their software and services.
BlackBerry phones weren’t just known for their tiny keyboards and innovative trackpads. They also had secure, cutting-edge software that businesses and governments relied on. That’s why they’re going to continue making secure software for those two markets. Sure, they no longer make phones, but they make the stuff that goes on everyone else’s phone, and that’s a lucrative opportunity.
The company currently produces everything from secure messaging, office suites, file sharing, and other business applications for use on platforms like Windows, Android, and macOS. They also offer device management solutions, allowing businesses to securely manage all of their devices and computers under strict encryption standards. This software heavily protects BlackBerry clients from document leaks, intrusions, and other security risks.
Fortunately, BlackBerry’s new business plan is starting to work.
The company recently revealed that they made over $160 million in revenue on their software. This is a good indicator that businesses and governments are really interested in the secure software BlackBerry is offering. While they’re still losing money, the company posted a profit of 2 cents per share. Analysts predicted the company would actually post a loss of 1 cent per share.
Investors are happy that BlackBerry seems to be turning things around. Their stock was up by 3% shortly after their earnings announcement, though it closed at around .94% higher by the end of the day. This proves that some investors have faith in the company’s future as a software company. Though it might be costly for them to stop making phones, they’ll (hopefully) be able to move into the future without them.
Should you invest in BlackBerry? If you’re interested in investing in the Canadian company, you might want to wait and see how they perform in future quarters before buying any stock. If their software continues to bring in more revenue and the company is able to stay afloat while exiting the hardware business, then it might be a good sign that they have a future.
If you can’t wait that long, there’s always $AAPL, right?