Research In Motion Ltd (BBRY): Transitional Phase for The Company?

Source- Kantar WorldPanel

Google Inc (NASDAQ:GOOG)‘s Android, with a 51.2% market share, owns more than half of the smartphone sales in the U.S. Android can be used with all types of phones, unlike Apple’s operating system.

Even though the IOS market share has declined, Apple’s mobile offerings are the strongest with the two largest U.S. carriers, AT&T and Verizon Communications Inc. (NYSE:VZ). With plans of releasing smartphones for all types of consumers, BlackBerry could take advantage of that event and regain its market share — primarily because an iPhone doesn’t come cheap.

The Chinese market has been attractive for all the tech giants. It’s believed that at present, the Chinese market is one of the biggest mobile-phone markets in the world. What is surprising is that 90% of this market is dominated by Google’s Android operating system.

The Chinese government is worried about Google’s dominant position there and could soon introduce regulations regarding the use of Android to ensure that the mobile devices use an operating system developed by the domestic companies. This could be a big worry for Google.

There have also been rumors about Apple announcing a China Mobile deal sometime this year, and there is a possibility of a low-cost phone, also. This could help Apple increase it revenue and help its poorly-performing shares- which are at present 38% below the highs they have seen.

Because at present Apple caters to the high-end market and there are worries for Google in China, BlackBerry could take advantage and enter the Chinese market. As they already have plans to introduce low-cost smartphones, a dominant position there would add to the revenue and make it more profitable.

Even though BlackBerry faces stiff competition, with a positive earnings report and the stock’s rebound to a double-digit number, it has entered a transitional phase. I am definitely long BlackBerry. It certainly has great upside potential and will add value to investors’ portfolios in the long run.

usha patodia has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.