September 26 2016, this Friday BlackBerry (TSE:BB) will reveal its earning from the Q2. Over the past year the company is focusing on making new ways for profitability and to do that it is cutting down the workforce and some of its hardware business were subcontracted. These steps have been a real help in adjusting the losses the company had to go through. It is anticipated that soon the company will not have any extra services or incompetence to cut down and when that time comes the company will have no other option but to increase their growth.
For about over a year the business revenues for BlackBerry (TSE:BB) decreased by a figure of 66% to about 966 million dollars in the first quarter. This was majorly influenced by the decline in their hardware business which was about 82%. It was also affected by the drop in the number of BlackBerry (TSE:BB) users. The price for BlackBerry (TSE:BB) shares is estimated to be 8.80 dollars by the Trefis which is lessened by 20% from the current price in the market. Lately the focus of BlackBerry (TSE:BB) has been shifting to the software services that are mobility related and is drifting from the hardware focused sales.
During its first quarter the software and related services were worth 60 percent of the company’s revenue and most people estimated the division accounts to be the rest of the company’s value. The company is relying upon its user base in the government institutions to keep its market share steady. The sad part is that this user base is not being as loyal as expected and Blackberry’s (TSE:BB) market share is falling in this segment and it is estimated that in the first quarter it will fall to about 50 million users only.
While the company is busy trying to make sure that the decline of the company is stopped somehow and that it increases its growth rate, many analysts have various concerns that the company might have to sacrifice some of its near term revenues to get that. With the arrival of smartphones there has been a dramatic increase in the use and sale of many mobile messaging applications of all kinds. This has been further fueled by the increase in the number of affordable data plans in the market.
BlackBerry (TSE:BB) has been looking for ways to make sure that they somehow revitalize their famous messaging service, the BBM messaging service. They did this by presenting this service to their rival platforms i.e. iOS and Androids. As the process of crossing the platforms was going in their favour, somehow even that user base has not been growing as dramatically and the total number is only around 20 million users since the time it was introduced on different platforms. The company has been looking forward to improve this figure to about a 100 million as they are now offering the BBM to the windows phones as well.