Other rivals
Apple has been keeping busy with its newest and most sophisticated OS till date, iOS 7, fixing the loopholes that are constantly being spotted by developers worldwide. According to a WSJ report, Apple might be manufacturing a video game console that would be powered by the iOS platform and will allow users to play iStore games on the big screen (though nothing is confirmed yet.) As for the smartphone market, I believe that Blackberry should not be focusing on Apple’s iOS 7 and rather formulate strategies for boosting sales of its BB10 devices which will be sharply hit after the launch of iOS7.
As this fool article shows, Android-based devices command a major share of the U.S. subscriber market and hold much more than Blackberry’s share. Google Inc (NASDAQ:GOOG)’s Android OS is free for hardware manufacturers and has become the most popular OS across the globe, mainly because of Samsung’s hi-tech smartphones. In Europe, Android-based devices expanded their market share to 70%, up from 61%, in the three months that ended in May, 2013. The success of Android has been riding on its intuitive and innovative design, stellar collection of killer apps and a significant range of prices because of various hardware manufacturers.
Why a negative outlook on Blackberry?
Blackberry has witnessed a steep downfall in the past decade because of the fierce competition in the mobile devices industry. BB10 was its big attempt to regain lost market share and initiate a robust turnaround. Though I have not yet given up on the company’s OS or its devices, it is quite evident that Research In Motion Ltd (NASDAQ:BBRY) is trailing well behind the industry giants. The closest competitor that Blackberry needs to worry about as of now is Nokia, as both companies are undergoing big transitions. Once known as a phone maker for executives, Blackberry is now trying to rework its image to win over a younger and a diverse crowd.
The company has taken a big gamble by entering the smartphone market, which allows me to spare it for a poor performance in the first quarter. However, the constant decline in subscriber base and service revenue is an alarming sign. Blackberry is the only manufacturer that provides data service and this ensures a constant stream of revenue from subscribers. The fall in number of subscribers is unhealthy for the company’s financials in the future.
Research In Motion Ltd (NASDAQ:BBRY) is going through a tough transition that is also battering its lone savior during hard times. It’s not really a good time to make a position in the stock that has a bumpy road ahead.
The article This Company Needs More Time to Bounce Back! originally appeared on Fool.com and is written by Mihir Mehta.
Mihir Mehta has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Mihir is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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