BlackBerry: Pent Up Good News

| About: BlackBerry Ltd. (BBRY)

Pent up demand is often seen immediately following a recession or depression, where consumers have built up savings or held off on purchases due to the uncertain economic environment. When confidence and better economic conditions return, consumers and companies then make accelerated purchases of goods and services that speed up the economic recovery.

Something along the same lines in happening with BlackBerry (NASDAQ:BBRY) lately. After a very long dry spell of news and inactivity, BlackBerry is at long last providing the market with accelerated news and product announcements, which have over the past several days and weeks finally speeded up BlackBerry's stock.

So let's see some highlights from recent BlackBerry pent up news and product announcements:

The next generation BlackBerry Enterprise Service (BES) platform, BES12; a new pricing model that will allow customers to deploy BES10 at no cost; and a new ecosystem of enterprise applications. The next generation of the BES platform will enable organizations to develop enterprise-grade applications that can be quickly deployed to BlackBerry smartphones and other mobile devices.

I have stated in the past that with all the noise and fuss about BlackBerry going out of business, enterprise customers were reluctant to upgrade and commit to BB10, because they did not know if BlackBerry would be around or not. Well things are starting to change and BlackBerry announced some very prestigious customers upgrading to BES10 and to BB10 devices. Daimler AG and Airbus Group are among the latest multinational customers to adopt BlackBerry Enterprise Service 10 and BlackBerry 10 smartphones. Now that there are no more bankruptcy clouds over the company, expect more prestigious clientele signing on and upgrading to BlackBerry soon.

BlackBerry announced the Z3 for the Indonesian market and BlackBerry Q20 with a QWERTY keyboard, integrated trackpad and 3.5-inch touchscreen. I wrote about the Z3 code named Jakarta a while ago. Well it seems that the rumors have been confirmed, and from the looks of the device (Ι will have a separate article on the importance of this device in the future), I think it is a device that can stop BlackBerry's market share slide in Indonesia and other emerging markets.

The Q20 is a device out of the blue, for there were no rumors about this device. This is a very important device also, because it will be aimed at current BlackBerry users, who enjoy the functionality of older BlackBerry models, but have not upgraded because newer devices do not offer these features. I have run into hundreds of BlackBerry users over the past several months that did not upgrade because they were so use to using their old devices. Glad to see that BlackBerry finally got the message, and is now prepared to cater to the millions of current BlackBerry device users (not just new customers).

If there is such a thing as reading one's mind, then that's exactly what BlackBerry has done to my mind. On a very recent article I said that BBM Is Worth More To BlackBerry Integrated Than On A Standalone Basis. Well Blackberry was reading my mind when they announced eBBM Suite, a new family of products and services that work with BlackBerry smartphones and BlackBerry enterprise solutions. Believe it or not, there is a market for enterprise scale safe text messaging services (or regulated industries as Blackberry calls it) and BlackBerry's BBM has the goods.

The first solution that will be rolled out is called "BBM Protected", bringing regulated industries the most secure and reliable real-time mobile messaging in the industry. BBM Protected will provide an unrivalled level of trust in enterprise messaging with end-to-end encryption of messages that uses symmetric encryption keys for BBM messages and best-in-class technology for public-private signing and encryption key pairs.

While not many details were announced, make no mistake, if eBBM Suite will be something along the lines I said in my last article, BlackBerry stands to make more money from BBM (selling services to enterprise users) than most people can imagine.

And speaking of BBM, BlackBerry also announced that BBM will be made available for Nokia's (NYSE:NOK) X platform and Microsoft's (NASDAQ:MSFT) WP8. So now BBM will be available for every smartphone platform. Adding BBM to Nokia and Microsoft phones should be an added plus for the company in emerging markets.

And of course I could leave out the fact that Ford (NYSE:F) has officially decided to drop Microsoft and use BlackBerry's QXN solution, to power its Sync mobile-phone multimedia software beginning in 2016.

Bottom line

At long last things are moving ahead for BlackBerry. The new management team is moving fast to fill the void of the previous management, and has also taken some very bold steps to attract enterprise customers, as well as steps to protect its market share in the emerging markets space.

While BlackBerry will probably not be profitable this year, what is important to note is that the company is building up the business and we will probably see the benefits of this transition in an accelerated way, when the cards fall in place. As such, I reiterate my target for $18 - $20 for this year, because when all these plans hatch, then the pent up demand will probably be for BlackBerry shares.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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