BlackBerry Phone Market share Fall To 0 percent

by Munira Qaid Johar
  • Canada’s Blackberry’s shares slowed down by 10 percent since the company’s focus switched to another model.
  • The company declined to sell its services and software on a licensing basis.
  • Blackberry, that earned a profit of around $670 million the previous year faced a loss of $60 million loss in the first quarter.

Blackberry faced a slowed down phase in its shares as the company recently switched to a subscription-based device. This decrease was reportedly observed by 10 percent in this year. The Blackberry company estimated it’s business growth by 8% to 10% in the coming year 2019 along with a 20% development in 2018. However, unlike the forecasted growth, its first-quarter revenue outshined and resulted in the profit beat.

What does John Chen say regarding this heavy loss? 

As per the statement of John Chen, a chief executive officer of Blackberry, the Company would no longer be supporting the sale of its software and services on the basis of the licensing system rather it would be persuading the Companies to approve the subscription procedure.

With the main motive of achieving around 90% plus as software and services revenue, John Chen expects that the Company would successfully accomplish their goal within a desired period of 1 year.

Ali Mogharabi, a Morningstar analyst stated that “the growth direction of the Company was lesser than the estimated growth and revenue and this loss was mainly reported as the company failed to be acquainted with enterprise software and services based on subscription.  In addition to this, he also mentioned the name of a few popular software companies that modified their software and services to the cloud and depends on subscriptions for a stable profit and annual revenue. These Companies mainly includes Adobe systems and Oracle.

Blackberry’s focus has now shifted to the development of a software for the next-generation driverless car system.

Canada’s Blackberry that was especially considered for ruling the Smartphone market almost a decade back that however lost the combat to Apple Inc’s iPhones and Android services, is recently making every possible effort to achieve the interest of investors and earn money by promoting and selling its services and software to government agencies and huge corporations. As part of its major modification and evolution, the Blackberry has shifted its focus to designing a software based on QNX platform. This software is specially designed considering the next-generation driverless cars.

In regards to the above-mentioned evolution, the company has planned to join hands with Ford Motor Company, Tata Motors Ltd’s Jaguar, and auto technology Companies Denso or Aptiv Plc. However, as per the recent reports, the company undergoes a loss of $60 million comparing to the revenue it earned the last year i.e., $1.23 per each share.

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