John Chen Changes The Game Again – Soon They Will All Be Powered By BlackBerry

BlackBerryExperience

As previously reported on UTB blogs, BlackBerry is introducing the BlackBerry Experience suite of products to facilitate  productivity, communication, collaboration and security across all smartphone and tablets running iOS, Android™, and Windows® operating systems.  The end result is that it will allow users to have the ability to work seamlessly and securely across any device.

Below is a promotional video: Introducing the BlackBerry Experience Suite

There are some who are asking what does this all mean?  For starters it clearly shows that BlackBerry is once again demonstrating leadership and innovation while others are sitting still.

It is showing that BlackBerry is thinking two or three steps ahead of its competitors and positioning itself to take advantage of future technological trends, especially where smartphones, productivity, security and the ease of communication is concerned.

The other thing to note is that BlackBerry has diversified itself and reorganized itself under 4 pillars, hardware, BBM, QNX and its Software and Services division.  Each with its own independence and mandate so that BlackBerry will never again be totally dependent on selling handsets as occurred under BlackBerry’s previous leaderships.

ProfitMarketShare

So whatever BlackBerry’s market-share is right now, it does not matter in the scheme of things as long as its hardware division is profitable.  In the last earnings reported it was indeed profitable and had a positive cash flow of $43 million.  From all reports, BlackBerry has not lost any money on the Passport or Classic, which are the two latest devices that were released.

HeadInTheSand

Despite this, there are still those that continue what I would characterize of displaying the “head in the sand principle”, as they get stuck on and keep repeating the same argument over and over again. As I explained to one critic who kept going on and on about market-share, my answer to him was that as long as the company was making money on whatever it was producing and it was in line with meeting their expectations, then comparing its market-share to another was totally irrelevant.

Burger

That is why a mom and pops hamburger shop can coexist and successfully thrive in the same market as a McDonalds, Wendy’s or Burger King.   This is because the quality of the product and whether enough of it can be sold to cover expenses is what really matters.

Expanding on the same point, the other factor that many fail to realize, but was expressed so eloquently by UTB contributor Biggly in the following article is the following point.  If a company has a very large market-share, but at the same time is losing a lot of money, it is in a worst position financially than a company with a much smaller market-share that makes a profit.

Here’s the rub. This market share argument is actually pointless. Look at Android, let’s take the higher figure of 56.2%. Now, I know that here in the UK that slice of the pie is dominated by Samsung and HTC, with Sony having a decent chunk too.

All of whom reported HUGE losses from their phone divisions last year.

Meanwhile, silly old BlackBerry are making a profit from their measly 1.9%.

ChenClassicandPassport

It was only a year ago when certain publications in the mainstream media and other tech blogs were scoffing at BlackBerry CEO Chen’s statement that BlackBerry was going to earn a substantial amount of its revenue from their software and services division.  Now we are beginning to see the results.  BlackBerry is clearly leveraging all of its services including BBM, the NOC, BES12, QNX and the two latest company acquisitions, Secusmart and Movirtu in order to make it happen.

There was an interesting tweet on Twitter that I came across earlier today that puts everything into perspective and it was as follows:

Tweet

BBRY’s Chen once said to me: Why do I care about competitors if I can find a way to profit from their success?

HelpingHand

That was one of the most enlightening quotes that I ever heard attributed to him and clearly explains the latest partnerships and acquisitions by BlackBerry.  What this really means is that a part of BlackBerry’s software and services strategy is to actually leverage its competitors success in terms of sales by providing services to secure, add functionality and services to their devices, so that it can profit from every unit sold.  This will certainly provide an additional guaranteed revenue stream for BlackBerry that it can count on month after month, similar to the one that BIS provided in BBOS heyday.

HereToStay

So for those who continue to predict BlackBerry’s demise and have been doing so every year since 2011, you are simply wasting your time as it is not going to happen.  BlackBerry will be around and will continue to innovate for a long time.  It will also be in a position to licence its technology and thrive on the successes of its competitors and profit from every one of their devices that are sold.  So it is a very different game that it was a few years ago and BlackBerry is indeed here to stay despite what some in the tech media may say. For others who have migrated to other platforms but miss their BlackBerry, what are you waiting for?

Now is the time to come #BackToBlack.

web99

Web99 enjoys tech and has tried smartphones on all the major platforms. Out of all devices he has tried, BlackBerry10 best fulfills his needs.

Top