Boston, MA 02/04/2014 (wallstreetpr) – Any worthwhile investor in BlackBerry Ltd (NASDAQ:BBRY) knows that he is in for a long haul; otherwise he could have cut his losses long time ago and made a run for it. Though there is still a lot of positive news about the company, it is not specific.
The Turnaround Strategy:
We all know by now that the new Chairman and interim CEO, John Chen, wants to focus on the Enterprise segment, he has rid the company of many well known faces and is also filling up the posts with several new but again well known ones. They also seem to be heavily involved in the enterprise part of the segment and come from enterprise focused companies like SAP AG (ADR) (NYSE:SAP). This part of it makes sense. You do not have to concentrate on individual numbers; one client can give you those in one deal itself. And, BlackBerry Ltd (NASDAQ:BBRY) is also very strong in this segment with many governments relying on the company for its telecommunication needs.
The part about rolling out the iconic BBM services on rival Android and iOS platform however mystify. And offering it for free makes even less sense. How will Blackberry monetize this? There is no news on this angle, the press is only talking about the numbers.
The Long Haul:
Is this part of the long haul strategy? They simply do not add any numbers to the balance sheet. The deal with Foxconn makes a lot of sense. After all, Blackberry had to write down almost $960 million in unsold Z10 inventories. Now, there is also some noise that the company will also focus on the consumer market. This is a little unsettling. Blackberry has zero market share in the smartphone segment and even companies like Apple Inc (NASDAQ:AAPL) are finding it difficult to fight the onslaught of cheaper versions.
Building a strong team may be difficult but it is equally important that the company is able to retain it. And as time flows by, it will be very difficult to do so. Unless, BlackBerry Ltd (NASDAQ:BBRY) can show some black and white figures, many stake holders are simply going to lose interest.
