BlackBerry Board Thinks Company Could Compete as "Niche" Company
September 2, 2013 12:09 PM
comment(s) - last by
It could sell off other "subsets"
As BlackBerry struggles to compete with the larger smartphone makers like Apple, Google and Samsung, its board committee said it would consider making BlackBerry a niche company.
Bert Nordberg, director of BlackBerry's board, said that the company has created value in areas like enterprise business, hardware functionality and secure communications, but other "subsets" could be sold off. Nordberg didn't specify what those subsets are.
"I think BlackBerry is able to survive as a niche company," said Nordberg. "But being a niche company means deciding to be a niche company. Historically, BlackBerry has had larger ambitions. But battling giants like Apple, Google and Samsung is tough."
Nordberg also said that the company's value on paper and Wall Street's perception of BlackBerry's worth needs some work.
BlackBerry has been struggling to stay relevant with both Apple and Samsung/Google taking over the mobile market. Earlier this month, the company's board of directors announced the formation of a Special Committee to
explore strategic alternatives
to enhance the value and accelerate the development of BB10. The announcement came only a few days after a
that BlackBerry might go private in an attempt to fix its problems away from the public.
Nordberg joined the board as director back in February of this year. He was brought in along with retired Verizon executive Richard Lynch to try and fix the once-popular BlackBerry.
BlackBerry Z10 and Q10
Nordberg is a good candidate for the job because he helped Ericsson sell its stake in Sony Ericsson back to Sony. He was also a key part of Ericsson's restructuring process after it almost went bankrupt in the early 2000s. It resulted in almost 60,000 jobs cut and Ericsson's exit from the low-end market for basic mobile phones -- instead focusing only on smartphones running the Android operating system.
"As a CEO of Sony Ericsson, deciding to bet on Android was an easy decision," said Nordberg. "With BlackBerry things are definitely much harder. Blackberry's security framework is built into the mobile software, so you can't just decide to change operating system. But BlackBerry has cash and it has no debt, so I'm sure that we'll piece something together at the end of the day."
BlackBerry launched its new BB10 operating system in January of this year, hoping that the new line of devices with a refreshed OS could help save the ailing company. However, analysts have called the Z10 launch a "disaster" and BlackBerry
even fell from third place
to fourth in Q1 2013 for smartphone operating system shipments. Microsoft's Windows Phone booted BlackBerry for No. 3.
To make matters worse, BlackBerry posted
a surprise $84 million USD
($0.13 per share) loss for Q2 2013. It only sold 2.7 million BB10 devices as well when analysts expected 3.5 million.
Last week, reports said that BlackBerry executives were considering
of its messaging service BlackBerry Messenger (BBM). In addition, many carriers and smartphone resellers in the U.S. and Canada said that
the Q10 smartphone
has failed to sell as well as expected.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
RE: That is the only way they can survive.
9/3/2013 12:42:16 AM
Soon as I read the tag line 'Compete as "Niche" Company' I could only think of something you put under wobbly table at a restaurant. :)
RE: That is the only way they can survive.
9/3/2013 8:50:05 AM
LOL... Funny, that is exactly what I tell our users when they upgrade and ask "what do I do with my old Blackberry?" I tell them it makes a good doorstop or paperweight, do whatever you want with it, just do NOT send it back to me.
"This is from the DailyTech.com. It's a science website." -- Rush Limbaugh
Report: BlackBerry Q10 Sales Looking Dismal
August 29, 2013, 4:31 PM
Report: BlackBerry May Jettison Successful Messaging Service
August 27, 2013, 6:33 PM
BlackBerry to Explore "Strategic Alternatives" to Complete Restructuring Efforts
August 12, 2013, 8:58 AM
Report: BlackBerry Could Go Private
August 9, 2013, 9:16 AM
BlackBerry Posts Surprise Loss on BB10 Flop; Only 2.7m BB10 Devices Sold in Q2
June 28, 2013, 2:47 PM
LG Introduces Chrome OS-Powered "Chromebase" AIO
December 18, 2013, 9:46 AM
Google Testing Smart Thermostat in St. Louis
December 17, 2013, 11:43 AM
Microsoft Wins "Synchronized Calendar" Patent Case Against Motorola Mobility
December 17, 2013, 11:23 AM
President Barack Obama Meeting with Tech Leaders to Discuss HealthCare.gov, NSA
December 17, 2013, 10:59 AM
Quick Note: E-Waste to Increase by One-Third by 2017, U.S. Leads in E-Waste Output
December 16, 2013, 12:20 PM
Amazon Announces No Interest, Kindle Fire HDX Payment Plan
December 16, 2013, 10:35 AM
Most Popular Articles
China's Lunar Rover Enters Orbit, Prepares for Historic Sat. Landing
December 13, 2013, 5:00 PM
Metro-Enabled Firefox Browser Expected to Land After Two Years of Work
December 12, 2013, 5:21 PM
The History of Normandy: How Nokia Plotted a Low-End Android Line
December 11, 2013, 8:12 PM
Ten Senators Sponsor Bill to Scrap Corn Ethanol Market Manipulation
December 13, 2013, 1:52 PM
China's Moon Rover Lands Safe and Sound, Starts Snapping Pics
December 16, 2013, 1:22 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information