Even Apple fails to convince
On the other hand, Research In Motion Ltd (NASDAQ:BBRY) can take some satisfaction from the fact that even Apple, a seemingly overwhelming competitor, also seems to bear the brunt of a distinct and similar lack of credibility as displayed by its investors. With Apple Inc. (NASDAQ:AAPL) failing to bring out a ground-breaking product for a long time now, management led by Tim Cook is finding it real hard to stem the steady decline in company stock prices.
And although the company has now come out with its much-touted iOS 7 operating system, Google Inc (NASDAQ:GOOG)’s Android continues to have a stranglehold on the minds of smartphone users with a whopping 52.4% market share in the three-month period between April and May 2013, according to research agency comScore. On the other hand, Apple’s iOS-based market share, although substantial, remains a distant second at 39.2%. At the same time, if Apple Inc. (NASDAQ:AAPL) does come out with a cheaper iPhone to gain more market share in cost-conscious emerging nations such as India and China, that would be the end for Research In Motion Ltd (NASDAQ:BBRY)’s hopes of a revival in sales.
The pricing factor
Any talk of emerging markets also brings us to the second most important reason why Research In Motion Ltd (NASDAQ:BBRY) should call it a day – its disastrously high pricing policy for the Z10 and Q10 in those regions, something which I had already hinted at before.
Anyone who has even a rough idea of the current smartphone market dynamics is aware of the fact that pricing remains the key to winning more market share in emerging nations such as India where consumers are much more cost conscious than their counterparts in developed regions. Having said that, BlackBerry seems to have committed marketing hara-kiri by setting an average $700-plus price tag for the Z10 and the Q10, considerably more than some of market leader Samsung’s newest and best offerings in those regions.
Some final thoughts
Research In Motion Ltd (NASDAQ:BBRY) is in a really bad state now, and the situation is only likely to worsen in the near future. While it’s true that a transition into a new operating ecosystem takes time, the company is simply losing too many customers at a rapid pace to sustain till then. Pricing has also been a complete disaster till date and the enterprise scenario continues to be as bleak as ever, and that’s despite all the company’s newest gimmicks such as the Research In Motion Ltd (NASDAQ:BBRY) Balance feature.
And as if that’s not enough, the company’s painfully acquired cash pile is also set to dwindle, given the management’s lofty plans at more future investment. This is one stock that will continue to be nothing but a burden for a long time to come and investors would do well to get rid of it altogether from their tech portfolio, even if it means incurring a loss as of now.
The article Why It’s Time To Bid A Fond Adieu to BlackBerry originally appeared on Fool.com and is written by Subhadeep Ghose.
Subhadeep Ghose has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL). Subhadeep is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
