BlackBerry Ltd (NASDAQ:BBRY)’s Win-Win With Priv Bet


Did BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) make the right move in producing a smartphone that runs on Android instead of its own native OS? That question will be answered in the next few months when firm details about the market progress of Android-based Priv become available. However, a deeper look at BlackBerry’s Android/Priv bet shows that the company stands to benefit no matter the market outcome for Priv.

Tapping into Android power

Battling shrinking hardware fortunes, BlackBerry Ltd (NASDAQ:BBRY) decided to break away from the norm by designing and producing an Android-based smartphone-Priv.

The question has been whether Priv will help BlackBerry turn around its smartphone business, which has today become a pale shadow of its former self.

Riding on the reputation of device security, Priv could displace many Android rivals and bring a much-needed boost to BlackBerry’s hardware business.

In an apparent effort to clearly distinguishing Priv from the rest of the Android crowd, BlackBerry Ltd (NASDAQ:BBRY) has built security into the phone’s hardware in addition to tightening its security through software as well.

If BlackBerry does succeed with Android (Priv), the company will have valid reason to produce more Android-based smartphones and possibly bring life back to its handsets business.

Proving a point

However, if Priv turns out to be a disappointment, BlackBerry Ltd (NASDAQ:BBRY) will still be a winner because it will have proved an important point.

Long before Priv came to the picture, many asked why BlackBerry didn’t make Android smartphones to try to grow or at least stabilize its hardware business. With Priv, BlackBerry to some extent appeared to yield to recommendations that it taps into Android for possible revival of its ailing handsets business.

Therefore, if Priv fails, BlackBerry Ltd (NASDAQ:BBRY) will have proven to critics why it was initially adamant about making Android phones. Additionally, the failure of Priv would clearly show BlackBerry which OS is worth its investment for future growth.

As such, regardless of what comes out of Priv, the result will be a win-win for BlackBerry Ltd (NASDAQ:BBRY) as the company tries to reinvent its hardware business.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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