Wall Street had a sweet surprise when Blackberry was seen
beating the already admittedly low-end estimates for its fourth quarter.
Blackberry’s numbers looked pretty gloomy. However, the situation wasn’t that
bad. In fact, the company’s stock has risen about 24% over last three months,
as some investors have been sold on to a comeback tale.
This leaves us wondering, does Blackberry have a shot?
Blackberry’s CEO, John Chen has given a 50% chance to the
company to make a comeback. Some investors think those are good odds with Chen
at the helm.
"He's definitely
smarter and better than the previous management, and he's got a good track
record," Genovese said.
BlackBerry's messaging service, has 85 million monthly active
users versus 450 million for WhatsApp. Facebook’s $19 billion acquisition of
Whatsapp has also made it likely to buoy the stock.
So far, the company has been cutting costs to make Blackberry a
leaner option. Chen has also made a deal with Foxconn to manufacture BlackBerry
devices. BMM has a devoted following in the Asian and Latin American marketers,
so, the plan is to produce cheap devices and hit these markets.
BlackBerry isn't abandoning the North American market, though:
Chen said he's planning to have BlackBerry design high-end phones, and then
produce them with a yet-unnamed manufacturer.
However, now, the company is pulling heavily from the past. Chen
has outlined the plans to pump up the production and sales of Blackberry Bold. Even
the company's new concept phone, the Foxconn-produced Q20, appears to be
embracing legacy technology — in this case a physical keyboard and trackpad
instead of a touchscreen.
Genovese doesn't think the plan will work. "Chen's done a
good job controlling what he can," Genovese said. "My analysis would
be he's got a year."
Telecom expert Roger Entner of consulting firm Recon
Analytics, was similarly skeptical.
Ted Schadler, an analyst with Forrester Research, dismisses such
talk. "It's a big world," Schadler said. "It's not a
winner-take-all market. There's a good chance they'll be around." Even app
development isn't that big of a deal. Developers may not be flocking to the
BlackBerry platform, but most Android apps can be easily ported to the OS, he
said.
Analysts think that Chen has been making all the correct
decisions and the leading Blackberry on the right track. To add to it, the
company has enough cash on hand to ensure that the company bounces back.
However, in the end, it’s the customers who will decide the fate
of this company. Are you ready to give Blackberry a second chance?