Little Hope For BlackBerry

According to a recent industry report from Kantar Worldpanel, BlackBerry’s (NYSE:BBRY) share of the smart phone market in the United States has all but disappeared. According to the research firm, during the three months ending May 2012, the once-dominant cell phone maker had a market share of 4.6%. Of course, this is a far cry from its glory days just a few years ago when it commanded over 50% in all units sold. Kantar Worldpanel’s report goes on to say that BlackBerry’s market share during the three months ending 2013 had falling precipitously to 0.7%.
BlackBerry had hung its hopes of a comeback in the smart phone market on its new operating system 10 and its accompanying Z10 and Q10 units. Reports are that while these models have boosted the firm’s sales compared to what sales might have otherwise been, the models have not seen anywhere near the success the company needs to stage a comeback in the smart phone market.

That being said, it is important to note that BlackBerry is more than just a producer of cell phones. It offers a number of communications infrastructure services, primarily to business users. And, while other providers have moved into this space, BlackBerry remains a big player.

It might be time for the leadership at BlackBerry to accept that the terrain has shifted. The company’s assets are best committed not to a battle it lost years ago but to maintaining and improving a business segment that remains viable. Does the leadership have the insight and courage to pull the trigger? Thus far, the answer seems to be no. But, even if they did, the stock remains speculative at best.

Our clients have no position in the stock, long or short.

From FORBES