Research in Motion (RIM), better known as Blackberry, is a mobile and wireless company. It was founded in Ontario, Canada in 1984 and ever since, it has been exponentially dominating the mobile industry, until the sum of both Apple Inc. and the Economic crisis introduced itself into society. The preeminence of Blackberry was immeasurable, a certain design, a unique functionality, one of a kind messenger device for blackberry users and an alphabetical keyboard were the sole ingredients to make a product of international use and success. Blackberry initially commenced this new brand for an audience of adulthood; however it immediately gained recognition from multinational companies as a use of business phones. Blackberry was at its pinnacle in 2005-2007, every businessman had a blackberry in their hands staying fully connected to the company’s assignments in every corner of the world, but also it reached out into a new crowd as well which prospered the demand for Blackberry phones. Teenagers. Research in Motion established a market for high school students as it was a brand that displayed wealth and the Blackberry curves was the gem product for that age group, a phone cheaper and of less complicity, yet still retaining BBM and the blackberry software. Even though it was one of the highly expensive brands in the market; it’s Blackberry Messenger (BBM) and its developed internet software escalated the devices shares into a lucrative value. Its infinite amount of texting via BBM lured all teenagers: it became a platform of communication for students. The Blackberry device was epitomized with its easiness, designing elegance, speediness and originality of features. The brand shadowed intelligence, sophistication and maturity for blackberry owners, it developed a perception in developing countries that having a Blackberry became one of the means to portray upper class and wealth. Blackberry’s shares were very promising: it was obvious to go up in value more and more, until it got plagued by the sum of Apple Iphones and the European Crisis.
Blackberry corporation shares were faltering and the devices became more tenuous with its crowd on the birth date of the one and only Iphone 3G. Shares immediately dropped and interest in the devices became less desirable. On top of the prosperous Iphone, the European crisis fostered Blackberry’s downfall. Blackberry stakeholders either instantly sold their shares or relied on faith; however selling was the more profitable of the two. Apple expanded the family by bringing the Iphone 3GS, 4, 4s, 5 and the demand was continuously sky-rocketing. Even though company’s transition from Blackberry’s to Apple products went substantially slow, small companies immediately transitioned towards the new investment of Apple. Blackberry was trying to rejuvenate by bringing out the Blackberry Torch, a phone consisting of both a keyboard and touch pad, however it was neither efficient nor reliable. On top of this defeat, the European crisis was a period of economic instability. A period which halted investments, advancements and disrupted economic growth and development. Apple and the Economic Crisis being the two factors, were the ones that illustrated Blackberry in a context laced with bankruptcy and sagging stock values.
Is it the right time to buy Blackberry shares?
Blackberry has finally taken the initiative to start a new beginning. They branched off from Research in Motion and developed a new scheme, a new start. They jumped back into the mobile industry with a new design for the Blackberry phones. Phones with more nuance and user-friendly. People are wondering whether Blackberry can build back the worldwide brand they had once established in 2006. Blackberry might have Apple and also Samsung against them, but they have planted their dominance in all corners in the world and it is a matter of time and innovation to re-plant and grow back their name onto soil. At the moment, it might not be the right time to buy Blackberry shares as it is at a fairly high price and there is a prospect of it devaluing. The corporation has a very adamant audience to convince, an audience to divert their notion back towards the Blackberry devices, however if people see Blackberry at a fairly low value, it might be appropriate to buy it. Why not? There are a new collection of devices coming into the market and it might play as the catalyst to more lucrative shares.
Essentially, Blackberry is a worldwide name, a name that shattered in 2010 and is in a transitional period right now. For every investor, ideally, if they are willing to take the risk, than buying Blackberry once it reaches the line of position (bottom blue line) would be ideal. The firm has announced its new device models and it would be most recommended to buy shares before and either to:
11. Sell their Blackberry equity right after the demand of the phones are diminished
22. Keep the shares by visioning the long run, this plan would be highly profitable if the new collection of devices became a great appeal and see potential for the revival of Blackberry’s in companies that have switched to Apple products such as: Goodyear, ExxonMobil and TNT.
Option two might seem risky, however Blackberry have played as the gem in the mobile industry and it is a matter of innovation and time to rejuvenate their once established international dominance.
Written by the writers at http://ibej.blogspot.co.uk/