BlackBerry Targets Internet of Things: Acquires Health Tech Startup

Before the arrival of iPhone and the rise of Samsung, BlackBerry used to be the undisputed leader in the mobile phone market. However, a series of missteps and the inability to keep up with the fast pace of technological advancement, the Canadian company is now struggling for its bare survival. BlackBerry used to rule the roost in enterprise market, but now it is losing even this niche segment to Apple and Android. The company is doing even worse in the consumer market. Its latest offering BlackBerry 10 failed to cause any splash in the market and even the company’s top boss John Chen has admitted that it is “losing money”.

BlackBerry is struggling both in the hardware and software market, despite the fact that its products are technologically robust. Now that the company is bleeding money, it needs to rethink its business strategy. Keeping its survival in mind, BlackBerry is now in the work mode. Its new strategy was underlined recently, when it announced the acquisition of a minority stake in NantHealth, a health tech startup. The new investment is likely to give BlackBerry the benefit of diversification.

BlackBerry is indeed enthusiastic about the acquisition as its CEO John Chen said, “Healthcare is one of the key industries in which we have unique advantages and this investment reflects our commitment to maximize our opportunities there.”

BlackBerry used to command a market share in the enterprise market on the strength of its impenetrable security features. The company is now using the same strength to capture newer markets. Its attempt to play the field in healthcare market is a step in the right direction. The company may now look into financial services and other regulated markets, which value features over form.

BlackBerry attempted to make its way into the consumer market, which is currently dominated by the likes of Apple, Samsung and Google. However, its attempts failed to yield any results. After years and years of failure, the company seems to have learnt its lesson and has indirectly admitted defeat. Now, it has set its eyes on more realistic goal, which is to harness its enterprise prowess.

But is too late for BlackBerry? Probably! The market experts still seem wary of the company’s new move. The company has been reporting massive losses and its new strategy to move into niche markets may backfire. In such case, it would be well nigh impossible for the company to dig itself out of this massive hole.

Instead of completely abandoning its core business of hardware, the company may go for the middle path. With its latest cost control measures, the company seems to be pursuing this strategy. It is also looking to reintroduce some of its proven products like BlackBerry Bold to generate additional revenue.

Overall, BlackBerry is now counting on “Internet of things” to rescue it from its impending doom. As Chen put it, “If the Internet of Things can connect the machines that take your blood pressure or electrocardiograph to your doctor’s smartphone, the need for absolute security and reliability is more important than ever.” The company is now going back to its roots for its reincarnation.