The Strategist

BlackBerry is going to conquer the software market

06/28/2016 - 16:32

Having failed in the smartphone market, Canadian BlackBerry is trying to survive by promoting its software division. The vendor’s main goals are government agencies and corporate clients, yet ordinary users of mobile services will not be overlooked as well.

Chris Michaels via flickr
Chris Michaels via flickr
BlackBerry announced establishing a partnership with PT Elang Mahkota Teknologi Tbk, one of the largest media companies in Indonesia. The transaction will allow BBM messenger to use content owned by the media holding. 

Indonesia is one of the last regions where BlackBerry has not been forgotten yet. 60 million out of all 90 million users of BBM instant messenger live here. Note that BBM software is not tied to the BlackBerry system and can run on Android or iOS.

The Canadian company took Chinese WeChat, very popular in China, as an example. The messenger has integrated social media, payment system, web browser, etc. Apparently, the BlackBerry dreams to turn BBM into something similar. 

EMTEK Group will provide cross-platform BBM users with access to advanced content and services. KMK Online digital content branch will move to an office in the Toronto area to work closely with BlackBerry.

"Impressive EMTEK’s achievements in entertainment content industry makes them an ideal partner to maximize the potential of BBM platform. We want to offer our customers even more content and new services - payments, video, music and games, and much more ", - said BlackBerry’s CEO John Chen.

EMTEK will be promoting BBM platform among individual users. Meanwhile, BlackBerry itself will continue to advertise BBM Protected – a cross-platform corporate messenger for Android, iOS, BB10 and BBOS.

The Canadian vendor’s top management continues to believe that the smartphone department still may to return to profitability. BlackBerry’s CEO expects to bring the business to a break-even level already this year.

However, experts at Strategy Analytics believe the opposite. They say that the goal is unattainable with BlackBerry’s current volumes of supplies. Experts point out that the market was not excited about the Canadian brand’s first Android model. As for the new mid-range devices, which are expected to be revealed in the third quarter of this year, the experts doubt their success.

BlackBerry’s quarterly results, released last week, became another disappointment for analysts. According to the results of I quarter of 2015 fiscal year ended on May 31, the Canadian company had a net loss of $ 670 million, or $ 1.28 per share, compared with net income of $ 68 million, or 10 cents per share, obtained in the comparable period a year earlier.

The loss excluding nonrecurring factors amounted to only $ 1 million, which corresponds to almost zero level per share. Revenue fell by 35% to $ 424 million from $ 658 million last year.

Analysts polled by FactSet forecasted the company’s average revenue at $ 608 million. In turn, Thomson Reuters’ survey predicted a net loss of around 16 cents per share, adjusted loss - 8 cents per share and revenue of $ 470 million.