BlackBerry - Some Roads Aren't Meant To Be Traveled Alone

Sneha Shah profile picture
Sneha Shah


BlackBerry (BBRY) has been one of the most traded technology stocks in the last couple of months. This Canadian smartphone maker was given up for dead, as it failed to keep up with the technological improvements made by the Apple (AAPL) and Samsung smartphones. BBRY failed to adjust itself to the tectonic shifts in the smartphone industry, toward touch screens and consumer markets. The company was very late to move into this segment and never had products that were as good as the iPhone. BBRY's new BB 10 operating system and smartphones (Z10) hope to cover the lost ground. However, it will be impossible for BBRY to regain its lost market share as the smartphone industry has rapidly evolved since its leadership days. BBRY is now directly competing with the biggest companies. To match their size and power, BBRY needs more resources. While the company's new products may or may not succeed, BBRY will benefit from a bigger parent as it is tough for it to compete alone. BBRY's current valuation is quite cheap and it represents an attractive target. We think BBRY's acquisition will represent a win-win situation for both parties.

Android has led to the commoditized smartphone industry in a much shorter time frame

Google's (GOOG) Android operating system has leveled the field for a number of small smartphone companies that did not have the wherewithal to build and support an operating system with its attendant applications. Now, small companies like Micromax and Lava can compete with technology behemoths like Samsung on almost equal terms. The PC industry took a long time before it became a commodity industry. IBM got out of the PC business a long time ago seeing the commoditized trend. The smartphone industry is showing

This article was written by

Sneha Shah profile picture
I am Sneha Shah, the Editor-in-chief of Greenworldinvestor. A Chartered Accountant by profession, with interest in Finance,Green Industry, Economics and the Indian Market.

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