The year is 2007, and Apple (AAPL) has announced to the world the soon-to-be iconic iPhone device. At the time, BlackBerry (BBRY) is in euphoria with its stock price hovering above $140 per share and is a powerhouse in the smartphone market. However, Apple’s iPhone focused on catering to the consumer and not just business professionals, giving them a competitive edge over Blackberry. Fast forward to 2015: the name BlackBerry has hardly any connotation with the smartphone industry while Apple has 36.7% market share.

The company started off as being a pioneer in the smartphone industry. However, today it is far from that, holding only a 0.3% estimated global smartphone market share by the year 2018. The company has diversified its core business strategy and now heavily relies on software and service revenue streams. Over the past several years the company has released successful smartphone models, with the Passport and the Classic being prime examples of such. In both of these models, the iconic pull-out BlackBerry mini keyboard is installed and ran on a BlackBerry operating system. Although the phone was reliable and excelled in performance, there was not a sufficient volume of purchases made and thus, BlackBerry did not penetrate the smartphone market even in the slightest. 

Many argue that the poor commercial success was due to the brand-developed operating system, which has a poor app selection and is under-supported. It is, for this reason, the forefather of palm mobile phones has turned to the innovative, Google-owned Android operating system.

An opportunity exists for BlackBerry, as the company has expertise in the keyboard phone market, of which supply is limited. And if teaming up with Android will eliminate the consumers’ disappointment of BlackBerry’s proprietary OS, the success could be outstanding. The company’s main way in which it locks in customers is through its keyboard and messenger services. Thus, by delivering a phone that is powered by the popular OS, it will give former users a way to come back without sacrificing anything.

 Although no official comment has been made by BlackBerry, blogger and writer Evan Bass tweeted a photo of the phone, dubbed Venice.

Security space.

BlackBerry has joined the National Cyber Security Alliance (NCSA), showing the company is a pivotal force in the mobile security software sector. NCSA is a non-profit public-private body that concerns itself with a mission to promote online safety and security, which has become extremely important in recent years due to the numerous online security leaks.

The mobile giants said, “we’re reinforcing our commitment to keep data secure and information private by announcing that we’ve joined the (NCSA) in the United States”. The NCSA includes players from financial services, media, and the tech sector.

The U.S. Department of Homeland Security is also a key player in the NCSA. The firm says it has “been doing mobile security longer and better than anyone else, and we’re at the forefront of making sure that data remains secure as new threats”.

CEO John Chen believes that the firm is doing what it knows how to do in keeping mobile secure and private. He went on to describe how BlackBerry has become a leader in the mobile security space, highlighting how the company has invested more than $100M in building its security segment over the last year, including major deals with the likes of WatchDox, Movirtu, Secusmart and AtHoc.

Conclusion

It seems BlackBerry management has come to terms with the reality that it will find it difficult to compete against the likes of Apple and Samsung in the smartphone industry. Although they are looking to re-enter the market with their Android device, the company is keen on diversifying itself into the security space industry, where its success will be vital in building the company’s long-term future. Furthermore, with its expansion into the Indian market and Morgan Stanley’s upgrade, I believe BlackBerry is looking at a bright future. Additionally, the firm now has positive cash flow, has stable revenue, and can now concentrate on working towards building growth. The company was once a front-runner in the mobile smartphone market and now with unbelievably low share prices, buying the stock is currently a bargain.

The I Know First’s algorithmic analysis mirrors the bullish stance that the company is showing.  The indicators throughout this article suggest that BlackBerry will be of long-term value in the future, and is a stock investors should consider purchasing.