Will Blackberry Ltd (BBRY) Go The Nokia Way And Partner with Samsung Electronics Co Ltd (SSNLF)?
Blackberry Ltd (TSE:BB)(NASDAQ:BBRY) may try to end its hardware struggle with a Samsung Electronics Co Ltd (KRX:005930)(OTCMKTS:SSNLF) partnership. However, such an arrangement could also see BlackBerry behaving like Nokia Corporation (ADR) (NYSE:NOK), which abandoned its own mobile OS for rival software.
It is speculated that BlackBerry and Samsung are working out a partnership to build smartphones running Google Inc (NASDAQ:GOOGL)’s Android OS. The companies are said to be interested in developing phones based on Android Lollipop.
The combined smartphone project by Blackberry Ltd (NASDAQ:BBRY) and Samsung is expected to feature a portfolio of BlackBerry apps that work on Android. Such apps include the famous BlackBerry Messenger (BBM) app and a portfolio of security apps. Samsung is expected to weigh in with its captivating design and manufacturing prowess.
Pointers to possible deal
Clues that Blackberry Ltd (NASDAQ:BBRY) may take part in an Android-based smartphone project can be seen in the manner the company has been developing for Android. Although BlackBerry has its own OS, called BlackBerry 10, it has opened its apps for use on rival platforms, especially Android.
The other clue is that BlackBerry and Samsung already have some partnerships in place, and expanding on the existing structure is possible.
Partnership with Samsung would enable BlackBerry to put a positive spin on its portfolio of hardware. The company will also have to give up some long-held beliefs, some of which have impeded its progress in the handsets market. The move would allow the company to focus more on its services and security and adding value to the Android chain. The Android ecosystem could provide numerous benefits to BlackBerry, while BlackBerry could bring extra layers of security and services that could make devices even more useful in the enterprise.
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