BlackBerry’s ammunition for success
Research In Motion Ltd (NASDAQ:BBRY) has all the right ammunition to increase market share, and product design. In the mobile smartphone industry the BlackBerry is perceived as having the most secure mobile smartphone system. BlackBerry has the upper hand on its competitors by having its own enterprise server, which produces the most secure mobile system in the industry. BlackBerry went up a notch from just delivering smartphones; its ability to deliver mobile information sharing is much faster and quicker than its competitors. This is permitted because of exceptional R&D investment by BlackBerry, where its competitors seem to lack effort. Both Apple, and Samsung lack major investment in R&D. Apple Inc. (NASDAQ:AAPL)’s R&D investment rose to 3% as a percentage of revenue from 2.5% last quarter, Samsung spends 5.7% for R&D investment as a percentage of revenue, and BlackBerry invests14.10% as a percentage of revenue. BlackBerry’s BlackBerry Z10 has a longer battery life cycle than Apple’s iPhone 5, as shown in the picture below.
Source: Gizmag.com
As seen in the picture above the Z10 has 360 mAh more than the iPhone 5. Milliamp Hours (mAh) is described as the total amount of energy a battery can store at one time. I don’t think BlackBerry is betting its future on the Z10; I think it’s just a starting point for what is to come. BlackBerry possesses around 7,600 patents like the QWERTY keyboard and the thumbwheel it displayed on its previous BlackBerry devices. It is said that in the mobile smartphone industry BlackBerry is a leader in e-mail management. With this kind of ammunition BlackBerry should be able to corner the competition, and grab a generous amount of market share from its competitors.
A foolish conclusion
Research In Motion Ltd (NASDAQ:BBRY) is losing for now, but who knows what the future holds for a company of such stature, and healthy fundamentals. Maybe a change in management and a change in product design could boost its market share. BlackBerry has the capital to do an overhaul in every area that needs it, with a little over $1.5 billion cash on hand this might become a reality as seen with the Z10 below.
Source: Mybroadband.co.za
BlackBerry’s quarterly report on June 28 was interesting, and maybe changed the minds of some analysts, and investors. I think BlackBerry is a good investment opportunity for the long-term. BlackBerry’s stock will drop for a few days since the numbers missed expectations but its stock will eventually go back up. The question is where should you jump in to make a profit?
BlackBerry is just adjusting right now and going through a transitional phase. Keep in mind that during transition it’s rough at the beginning, so the sales numbers may hurt at first.
Gayron Wainwright has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Gayron is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article BlackBerry: Don’t Count Us Out Yet originally appeared on Fool.com and is written by Gayron Wainwright.
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