BlackBerry Plans for a Strong Comeback

by Thea Neuman 281 views0

BlackBerry and its parent company, Research In Motion, plan to make a remerge with the launch of BlackBerry 10. It is evident that the company is headed in the right direction as visible in the stock market and media, key indicators of a company’s progress.

In September and October 2012, RIM stock plunged to a low $6 range in the stock market. Since then, there has been a registered improvement of $14 prior to the announcement of its quarterly results.

Although the service revenue concerns caused a lapse, but it made a quick recovery with a strong high.The drop was due to a number of reasons; money loss on the income statement, downsizing of staff and other issues adversely affected RIM’s stock. It caused worry among investors that BlackBerry brand was headed towards more loss. Currently, shareholders are satisfied with RIM trading currently at almost $16.

Despite the good news, analyst estimates for the fiscal 2014 (end of February) remain bleak, the average EPS estimate sits at a loss of $0.54 as it did three months ago. There has been a lot of rally for the stock, but analysts have clung to their predictions.

If Black Berry 10 fails, then stocks will plummet, defying optimistic predictions of a recovery. Results can only be seen from the sales, which cannot be accurately estimated.

Development of the BlackBerry 10 has generated positive reaction from media, with developers willing to create thousand new apps. The new CMO promised that the BlackBerry 10 would support majority of the 600 apps already present in the market.

Canadian carriers have increased their stock of pre-ordered devices, which will help RIM’s financial situation. RIM will benefit from the favorable media presentation that is showing a positive outcome for the company.

The launch of BlackBerry 10 was delayed in the fall, which incidentally looks to be a good thing as the scheduled launch allows for more media focus.  Had the BlackBerry 10 been launched as planned, then it wouldn’t have received enough media attention because of more pressing news like the US Presidential race and Hurricane Sandy.

The iPad Mini and Windows Phone 8 suffered from a lack of promotion in the media because they were released within the news heavy time period.

Currently, there is no big technological roll out to distract from the spotlight on the BlackBerry 10.Though Microsoft is spending huge amounts for advertising, its Windows Phone is practically invisible in the market buzz.

Many carriers, some with a global outreach, are voicing their support for the BlackBerry 10, while the Windows phone doesn’t seem to be as well-liked or receiving such backing, which works in BlackBerry’s favor.

The future for RIM appears bright, particularly for those employees that stuck it out till the end and didn’t move on for greener pastures. If the BlackBerry 10 does well-it could mean a huge return for RIM and a reward for all the employees who worked hard while the company was going through hard times.

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    Thea Neuman

    BlackBerry and its parent company, Research In Motion, plan to make a remerge with the launch of BlackBerry 10. It is evident that the company is head
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