Wednesday, October 30, 2013

BlackBerry Down but Not Out

BlackBerry Limited (BBRY) has been in shambles for some time now. The reason: they jumped too late on the consumer-oriented smartphone bandwagon. The smartphone revolution was started by the iPhone, and it was successful precisely because it was easier to use, and was not focused towards corporate professionals only.

Amusingly, when the first iPhone was launched in 2007, Jim Balsillie, the CEO of BlackBerry back then, commented that the iPhone is “kind of one more entrant into an already very busy space with lots of choice for consumers … But in terms of a sort of a sea-change for BlackBerry, I would think that’s overstating it.”1 If only Balsillie knew that the iPhone would soon be hailed as revolutionary, and that BlackBerry would suffer financial losses, leading to an eventual buyout at a depressed valuation. BlackBerry’s stock price trend shows how the company, once renowned for its smartphones, has slipped almost into oblivion. From a peak of $144.45 on 18th July 2008, the company is currently trading below $10. Read More: BBRY, FFH

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