The New Blackberry Is Going All Software

Canadian software and smartphone maker Blackberry was once recognized as the leader in communication innovation, but quickly fell when Apple and Google stepped in the scene in 2007. Blackberry's stock price reached a high of $241.90 in July 2007 and has made a drop to $10.45 on Friday's closing bell.

Now 6 years later, under their new CEO John Chen, the company is resurging with a punch.



Last week, John Chen announced to the world that Blackberry will stop making their own phones in house and instead outsource the entire operations to their partners. He said the savings of roughly $150 million per quarter from eliminating the phone making operations can be redirected into capturing more of the security & software business, which has revenue growing at a very fast clip, 10% - 20% per year.

The markets was pleased with this announcement, so much that the stock price shot up +5% in a days' trading.

Software revenue makes up about 80% of total revenue, and has been making a lot of money for Blackberry. The company currently holds over 3000 patents and is recognized by the U.S. government and other governments around the world as the highest class in communication security. It has also acquired companies such as its competitor Good Technology, which owns proprietary android/iphone business managing software to add to its war chest.

Currently, Blackberry has released their latest phone DTEK50 which is their all new full touch Android device loaded with their own proprietary secure software. It has a convenience key on the side (just like the feature on the original blackberries that everyone loved) to launch your most frequently used application.

This week, one of their executive accidentally let out that they are currently working with their partner on releasing another phone with a keyboard within 6 months.

Internet of things (IoT) is a market space that the company is in right now, but not many people know it. They provide security software and solutions in keeping your internet connected things safe and secure from hackers trying to get into your personal home stuff. An example is that many of Ford's car radios are powered by Blackberry's QNX software.

The company has started testing out their new system called Radar which allows companies to track their shipping & freight anywhere in the world with smart information such as inside temperature of the container on a truck.

Blackberry is making a comeback and this is exciting for all Canadians.