Then a few days later, BlackBerry will announce the company’s second-quarter earnings report. While speculations may run wild, we’ve heard whispers of the report to be favorable.
Understandably, investors may be wondering if now is the right time to invest in BlackBerry. One billionaire has already thought it to be a great time to increase his firm’s investment.
However, the Q2 numbers aren’t the only thing potential investors need to be excited about with BlackBerry for the long term. The Motley Fool has listed the following three reasons:
1. The Passport itself
When Samsung first came out with the Note, there were plenty of skeptics. After all, who was going to use a phone too big to fit in most pockets? But as Samsung said itself in a recent commercial, it’s about being more productive. And this should ring true for BlackBerry as well.
Critics point out that its wide screen makes the phone practically impossible to use with just one hand. But the Blackberry user, especially the corporate client, is used to using BlackBerry phones with both hands. And when a corporate client needs to do some mass emailing, then he’s not going to type them out with just one thumb.
So the Passport should succeed for the same reason as the Note did. Better yet, the Passport has a much more specific target market and function. Shareholders should be optimistic.
2. An increased focus on security
Over the past year, there’s seemingly a story every week about some high-profile hacking scandal. Most recently, hackers stole nude photos of various celebrities via iCloud. And BlackBerry did not spoil the occasion, touting its security advantage. According to its official blog, “As the iCloud hacking story continues to unfold, experts are finding it hard to talk about strong mobile security without bringing the corporate embodiment of it into the discussion.”
To put it another way, BlackBerry is reminding the corporate world just how important security is. And no one matches BlackBerry’s security capabilities. If the world keeps on experiencing these kinds of breaches, then BlackBerry’s message will keep gaining traction.
3. A leaner model
Since taking the helm, CEO John Chen has drastically slashed costs, with moves such as cutting the workforce and outsourcing handset production. Tellingly, Mr. Chen recently said BlackBerry only needs to sell 10 million devices a year for the handset business to make money.ADVERTISEMENT
This, of course, gives BlackBerry a better chance at profitability. It also gives the company more flexibility — now, longer-term investments can be made. And that is what we saw recently with the acquisition of U.K.-based Movirtu. This is not something BlackBerry would have done had it been desperately short of cash.
Over the last three months, BlackBerry stock has been steadily performing well. While the Q2 numbers are unknown, perhaps time is running out to get in on the company while they’re still hovering around the $11 mark.