BlackBerry Ltd (NASDAQ: BBRY) BlackBerry has had an interesting time in the market as of late. After years long lows, the stock has finally started to recover. That is, until last week. Throughout the week, weve seen slow and steady declines on the stock. Now theres a big question being asked Should investors be concerned about BBRY declines? In my opinion, the answer is no! Today, well talk about why.
BlackBerry Will Continue Operations In Pakistan
First and foremost, a big cause for concern as of late has been BlackBerry operations in Pakistan. Recently, the Pakistani government asked for access to BBRY server e-mail and messaging content and placed a shutdown order on the company if demands were not met. However, after discussions between the company and the Government of Pakistan, the request for access has been dropped along with the shutdown order. In a recent statement revolving around the news, BlackBerry had the following to offer
“We are grateful to the Pakistan Telecommunication Authority and the Pakistani government for accepting BlackBerrys position that we cannot provide the content of our customers BES traffic, nor will we provide any so-called backdoors to our BES servers.”
The resumed operations in Pakistan mean that BBRY is keeping the door open to a massive profit potential. On top of that, BlackBerry has made it clear that they do not intend on sharing their data with governmental parties. This is incredibly important to consumers that fear for invasions of privacy through technology and will likely lead to higher consumer confidence in devices provided by BBRY.
BlackBerrys New Line Of Phones Will Likely Lift Market Share
On top of the news we saw out of Pakistan, theres another big story thats likely to lead to profitability for the struggling mobile phone company. BlackBerrys biggest problem has revolved around smartphone sales. At one point in time, the company was on top of the game, leading the charge in the smartphone industry. However, as the years passed, more competition came onto the playing field, and consumers proved to enjoy other operating systems more. As a result, BBRY market share in the smartphone space fell to less than 1%. However, the companys new line of phones is likely to pick that number up substantially.
BlackBerry recently released Priv. This unique smartphone combines the solid hardware and security that were used to seeing from BBRY with the overwhelmingly popular Android operating system. So naturally, Priv was a big hit. In fact, BlackBerry received so many orders for the phone that shipments of the new handset were delayed! Now, rumors are circulating that the company is working on a new smartphone that will take advantage of the Android operating system. In my opinion, what were seeing here is a new product line from BBRY. Considering the massive success of the Priv phone, it only makes sense that more success is to come!
The Bottom Line
The bottom line is that BBRY has been in the dumps as of late. However, thanks to new developments, the company isnt likely to continue struggling. In fact, things are finally starting to look up. With maintained operations internationally and solid product offerings on the horizons, it only makes sense that BBRY is headed for long term upward movement.
What Do You Think?
Where do you think BBRY is headed moving forward? Let us know your opinion in the comments below!
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Article Source: BlackBerry (BBRY) Stock: Should Declines Be Concerning?