In case you haven’t noticed, Research In Motion Ltd (NASDAQ:BBRY) is going Google Inc (NASDAQ:GOOG). The Canadian handset maker has made plans for its iconic BlackBerry Messenger to be available for free on both iOS and Android. This cross platform approach, which is very typical of Google Inc (NASDAQ:GOOG), has also been witnessed in the move to allow the frictionless functionality of Android apps on BlackBerry10. Recent reports indicate that a private company will facilitate the porting of the whole Android catalog — more than 700,000 touch enabled apps — to the BlackBerry 10.
With all these central changes, the key question that industry specialists are asking is whether this cross platform approach, or should I say Google approach, will allow Research In Motion Ltd (NASDAQ:BBRY) to secure the third place position.
Microsoft Corporation (NASDAQ:MSFT) has the lead but BlackBerry is clawing back
As far as the battle for third place goes, Microsoft Corporation (NASDAQ:MSFT) is making more headway. IDC reports that Windows Phone posted the largest year on year gain among the top mobile operating systems. The research firm contends that Microsoft Corporation (NASDAQ:MSFT)’s Windows Phone has more than doubled its market share compared to the same period a year ago.
Microsoft Corporation (NASDAQ:MSFT)’s tremendous gain comes from the growing demand for Nokia’s Lumia handset. To the surprise of many, the Lumia, previously expected to fail, has gained immensely. In fact, Nokia has shipped 20.3 million Lumia units since it adopted Windows Phone.
I also believe that Intel Corporation (NASDAQ:INTC)’s soon to be released Haswell processor, which is expected to revive PCs, will help Microsoft Corporation (NASDAQ:MSFT)– a PC resurgence will provide more clout for Windows 8. This, in turn, could immensely brighten the prospects for Windows Phone.
Despite the edge that Microsoft Corporation (NASDAQ:MSFT) has, Research In Motion Ltd (NASDAQ:BBRY) is clawing back. In its home market of Canada, BlackBerry is reclaiming its share from Apple Inc. (NASDAQ:AAPL)’s iPhone. The struggling handset maker is gnawing into Apple’s share and in the process, roping in users in droves. The WSJ reports that Research In Motion Ltd (NASDAQ:BBRY) gained market share from 6% in Q4 2012 to 13.5% in the first quarter of 2013. This galactic gain is attributable to the cult-like demand for the Z10. Research In Motion Ltd (NASDAQ:BBRY) actually contends that the Z10 debut was more than 50% better than any other previous launch in its history.
I believe that the gains in Canada will be instrumental in closing the gap between BlackBerry and Microsoft Corporation (NASDAQ:MSFT).
More ‘Google’ tricks up its sleeve
Research In Motion Ltd (NASDAQ:BBRY) is also bringing more ‘Google Inc (NASDAQ:GOOG)’ tricks to the battle field. BlackBerry plans to launch a new mid-range device called the Q5. Retailing at prices lower than Apple Inc. (NASDAQ:AAPL)’s premium products and Nokia’s Lumia, the Q5 is expected to secure a compelling market in emerging economies.
Ideally, the plan is to replace the older Curve model with a better device at the same price level. Unlike Apple Inc. (NASDAQ:AAPL) and its snobbish stance toward emerging markets, BlackBerry — an equally cool brand — will be able to rally formidable numbers in emerging markets. In areas like Indonesia, where BlackBerry enjoyed a market share of 42%, this impending Q5 budget proposition is likely to push the top line a few notches higher.
The approach of appealing to the masses through cheaper options screams Google Inc (NASDAQ:GOOG). If anything, Google has built its success, not from the chic high-end Samsung Galaxy series as you would want to imagine, but from the glut of affordable low-end smartphones.
Despite this ‘technology for all approach,’ Google Inc (NASDAQ:GOOG) has been slammed hard by some critics. The bashing, as expected, has come from what the media currently calls ‘Apple fan boys.’ Despite this, Google Inc (NASDAQ:GOOG) has gained immensely; as shown by its stock which is just a few months away from crossing the $1000-plus mark probably. IDC argues that Android made up 75% of smartphone shipments during the first quarter of 2013. This is a huge increase from the 59% market share it claimed in the year-ago quarter.
Conclusion
BlackBerry’s cross-platform approach, coupled with its renewed focus on budget tended consumers, will level the playing field as far as Microsoft goes. Moving forward, this approach could unlock impressive upside potential for the stock. I recommend a long position in BlackBerry.
The article Will BlackBerry’s ‘Google’ Approach Secure a Win Over Microsoft? originally appeared on Fool.com is written by Lennox Yieke.
Lennox Yieke has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft. Lennox 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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