pvshah6542's  Instablog

Send Message
Hi! I am a stock broker based in India, have done MS in Telecommunications from University of Maryland. Worked in US for 3 years and now have moved to India for the stock broking business.
My company:
  • What Blackberry Needs To Do FAST! 4 comments
    Mar 22, 2013 12:24 PM

    A few things which I feel Blackberry needs to do really fast to get back on track:

    1) Improve Z10 Battery Life: Yes we saw the new OS update but what was stopping them to use a 2100 mAmp battery VS the current 1800 mAmp. A smartphone which gives the best battery life thanks to the efficiency of its OS, processor etc shall always be the talk of the town. This should have been done especially when Z10 goes on sale at par with likes of new iPhone and Galaxy S4 : $199

    2) Faster launch of Q10: One of the major reasons why people stuck with Blackberry was its best in class keyboard. So a prompt launch of Q10 was very important to share the new BB10 OS experience with the already die hard loyal BB fans. By delaying it Blackberry can't afford to lose any of its keyboard fans as that has been the main reason why we still see around 79 million BB subscribers. God knows what is stopping them to launch the Q10 sooner especially when we have seen such a BIG delay in the launch of even the Z10 in the US and many parts of the world. As we know the product cycles are getting smaller (6 months). Why do you want to give time to Samsung and Apple to pounce on your new innovation? Also blaming it to carriers is not fair. We must admit its Blackberry who delayed the launch and they should have anticipated the delay in testing a brand new OS.

    3) Emerging Market Strategy: Many of the loyal Blackberry base has still been in places like India, Indonesia, Philippines, South Africa, United Arab Emirates etc. Why could not Blackberry launch affordable ($250-300 handset) blackberry models on the new BB10 OS? Even a months delay shall make many BB Curve etc low cost handset users and fans of Blackberry leave them for likes of Samsung, LG, Nokia etc who have a lot wider range of handset price range. We must not forget that Blackberry no longer has the advantage it once used to have via its BBM. So I urge the management to be more proactive and not neglect the very important emerging markets. Also I don't know of the other emerging markets but in India I can see for sure that other handset makers are doing a far better job in terms of marketing and advertisements. Like Nokia and Samsung have India focused ads which show Indian's using their phones. Blackberry and Apple is still using the same ads that they use in US. The Indian ad that Blackberry is currently showing for the Z10 will surely not appeal even the top 2% of premium smartphone buyers in India. Also in order to make these premium smartphones more affordable Samsung and now Apple has come out with an EMI plan where after a small down payment the buyer pays a monthly fixed installments for 12 months. Blackberry still have to come out with this for the Z10. Plans of such kinds should be given in all emerging markets where the system of selling cellphones is different as compared to in US where you have a 2 years contract etc.

    4) Initiate A Small Buyback: We all know that Heins is very confident that Blackberry is not headed to bankruptcy and the balance sheet is extremely strong. Also they have managed the balancesheet very smartly and avoided any cash burn rather have added cash. Why can't we have a buyback of around $500 million and scare the HELL out of the short sellers? The management should sincerely consider this and get rid of such ridiculous short positions especially when things have started to look so good for Blackberry. With a short squeeze and stock going to levels of $25-$30 many bashers who daily write articles to bash Blackberry on Forbes etc shall stop and hide in a cave.

    Please feel to add your feedback as this is my first article. I really want Blackberry to be successful. They had to sacrifice around 5000 jobs. Also I personally feel a duopoly of Apple and Samsung is never a good idea for the end users. So Go Blackberry!

    Disclosure: I am long BBRY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Back To pvshah6542's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (4)
Track new comments
  • shawny81
    , contributor
    Comments (4) | Send Message
    BlackBerry is only legally able to buy back 5% of shares each year by Canadian law
    26 Mar 2013, 05:27 AM Reply Like
  • pvshah6542
    , contributor
    Comments (84) | Send Message
    Author’s reply » Thanks for that update. Even 5% of shares would make a huge impact on the shorts and also improve confidence in the market that the management is extremely confident on the platform and are willing to bet their important cash.
    26 Mar 2013, 05:40 AM Reply Like
  • Dividend Pros
    , contributor
    Comments (151) | Send Message
    I agree with most of what you have said except for the buy back point. Share buy back is for companies who have loads of cash lying around and they are unable to find a good use for a la AAPL. Firstly, bbry doesnt have that cash cushion. And secondly, I'd rather see Blackberry spend any cash on marketing efforts rather than on share buybacks.
    26 Mar 2013, 02:28 PM Reply Like
  • pvshah6542
    , contributor
    Comments (84) | Send Message
    Author’s reply » Thanks Dividend Pros. Yes your argument is very legitimate. Thanks for the valuable feedback.
    27 Mar 2013, 02:03 AM Reply Like
Full index of posts »
Latest Followers


  • When will the Short Squeeze in BBRY come? What shall trigger one like we saw in NFLX?
    Mar 19, 2013
More »

Latest Comments

Most Commented
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.