BlackBerry Ltd (BBRY)’s Market Share Manages To Continue To Decline

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)‘s smartphone market share fell by one-third in the first quarter. Though the company’s CEO, John Chen, has been claiming that it was transforming itself as a software company, it was not ready to abandon the smartphone manufacturing altogether. However, he did indicate that the company was focusing on a tiny audience in the smartphone space.

Market Share

It was not a surprise given the kind of smartphone growth in the first quarter on the back of solid sales generated by Apple Inc. (NASDAQ:AAPL)’s iPhone 6 and 6 Plus that exceeded 50 million units. As far as BlackBerry Ltd (NASDAQ:BBRY) is concerned, its share dipped to 0.4% from 0.6% in the year-ago first quarter.

The company also suffered volume-wise. BlackBerry could sell only 1.3 million units in the first quarter of the current year compared to 1.7 million units in the previous year quarter, according to a data from Gartner. In any case, the company’s market share has been less than a percentage in the last one year or so.

Emerging Markets

BlackBerry Ltd (NASDAQ:BBRY) indicated earlier that one of the focus markets would be emerging markets. For this, it was said to have partnered with Foxconn. However, the alliance has failed to provide the expected results for the Canadian company in volume.  The developing markets were flooded with cheap smartphones thus affecting the branded devices sales. Nonetheless, the alliance has managed to cut the costs of production for  BlackBerry.

John Chen disclosed earlier that the company was losing money on smartphones. However, the situation was said to have changed for the better though, even though it is not sufficient to earn profit from smartphones. BlackBerry Ltd (NASDAQ:BBRY)’s focus was on government and corporate only and not the regular customers. It was also concerned about profitability rather than the market share.

Mobile Platform

Google Inc (NASDAQ:GOOGL)’s Android and Apple Inc. (NASDAQ:AAPL)’s iOS occupied the top two slots in mobile OS with a share of 78.9% and 17.9% respectively. However, despite Microsoft Corporation (NASDAQ:MSFT)’s Windows Phone witnessing a growth in volume to 8.3 million units from 7.6 million units, its market share dipped to 2.5% from 2.7%.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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