Why Apple Inc. (AAPL) Should Buy BlackBerry Ltd (BBRY)

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Apple Inc. (NASDAQ:AAPL) finds itself in a problem, which neither it helped in creating nor does it have a solution to. Yes, even the world’s largest company finds itself in a trouble that it can’t solve with its multi billion dollar reserves. You may ask, what exactly is the problem? Well, for starters the problem is not restricted to Apple Inc. (NASDAQ:AAPL), but almost every company that finds its origin in the U.S.. Ever since the news of the U.S. Government snooping on other countries became public and Edward Snowden revealed how the U.S. Government agencies are keeping a tab on everything, governments in other countries have started distancing themselves from anything related to U.S. Tech companies, preferring home grown or Canadian firms like BlackBerry Ltd (NASDAQ:BBRY) instead.

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The most recent victim is Apple Inc. (NASDAQ:AAPL) whose products have been banned from Chinese government purchase. As we mentioned in an article, yesterday that Apple Inc. (NASDAQ:AAPL)’s products like iPad, MacBooks and iPad Mini were missing from a procurement list finalized by the Chinese Government in July.

This news comes on the back of a recent procurement list that the Chinese Government published last week, which excluded foreign anti-virus software companies like Kaspersky Lab and Symantec Corp, which had previously sold software to Chinese agencies.

Which brings us to the topic of this article, why Apple Inc. (NASDAQ:AAPL) must buy BlackBerry Ltd (NASDAQ:BBRY). Well, first of all Apple Inc. (NASDAQ:AAPL) has over $160 billion in cash and near-cash reserves, according to its last quarterly reports, which is enough money to any of the largest publicly traded company on earth. BlackBerry Ltd (NASDAQ:BBRY), with its $5 billion market cap won’t even make a dent in Apple Inc. (NASDAQ:AAPL)’s coffers, but that’s not the point of buying a company, which till a few years ago was counted as one of the main rivals.

BlackBerry Ltd (NASDAQ:BBRY) is a company, which even in its downward journey, never lost focus from its primary goal of securing conversation of its customers. Be it data, voice or messages, BlackBerry Ltd (NASDAQ:BBRY) is still the company on which you can rely on if security and privacy is your main concern. Granted that BlackBerry Ltd (NASDAQ:BBRY) has been reduced to a niche player in the smartphone universe, but that doesn’t change the fact that its devices are used by the who’s who of International politics, from U.S. President, Barack Obama, to German Chancellor, Angela Merkel.

BlackBerry Ltd (NASDAQ:BBRY) also recently acquired one of its long standing partners, Secusmart, a German company that makes chips for voice encryptions. With the Secusmart acquisition, BlackBerry Ltd (NASDAQ:BBRY) can now boast of having the most secure communication devices on the planet. Apple Inc. (NASDAQ:AAPL) definitely makes amazing deices when it comes to looks, devices and features, but when it comes to security and privacy, the company hasn’t made a name for itself in that department. BlackBerry Ltd (NASDAQ:BBRY), which has been struggling with its finances and operation for ages, can do wonders with a much needed cash infusion that a large player like Apple Inc. (NASDAQ:AAPL) can provide. If there ever was a time for Apple Inc. (NASDAQ:AAPL) to seriously think about acquiring competitors, it’s now and none of them would provide it with as much value as BlackBerry Ltd (NASDAQ:BBRY) could.

Disclosure: None

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15 Comments

  1. This entire article is based on the premise of the Chinese Government’s alleged ban on AAPL purchases with public money.
    THE STORY IS A LIE !!!!!!!
    It was revealed that “the list” was a six month old piece of trash from when they tried to say AAPL was “big brother”. The citizens ignored the rhetoric and AAPL sales increased.

    • First “iPhones are a security threat to China”, Apple screamed “No they are not!”

      Then “Apple products banned for Chinese Government use”, Apple cried “No they are not!”

      … I see a pattern here but the fact is that Apple products are not in the shopping cart for China’s government. We would think that the mighty Apple might have at least ONE device in that list, but they don’t. The panorama is tricky for US companies. Apple is not infallible.

      • draugminaion on

        iPhones *are* as security threat to China. State security. Android can can easily have snooping installed, Xiaomi has it pre-installed.
        IOS is harder to hack, so iPhone users could be saying all sorts of nasty things about the government and nobody would ever know they need to be sent off to a political correction labor camp. Not good.

  2. So as to be fair……BBY does have some valuable patents. They are definitely worth more for their parts than the sum.
    AAPL should buy those that would be accretive in their strategy with IBM. BBY can then worry about disposing of the crumbs.
    They are as dead as Motorola & Nokia; who once dominated, before smartphones. It’s a shame that BBY was there first and could not keep up.
    R.I.P.

  3. Well written article. I read a lot of BB slamming and this, although not 100 accurate, is an interesting read. I hope that it doesn’t happen because I absolutely hate iCrapple, like the government (German, US and Chinese since they can trust the technology on doing its job, unlike iCrapple’s iClone). Their are two things I think should be added to this (and any other article with iCrapple’s name on it). The first is that “Apple Inc. (NASDAQ:AAPL) has over $160 billion in cash and near-cash reserves” sits in off-shore tax shelters. As a government, I wouldn’t by their trivial iClone products either…even if they were given to me. The second is that Blackberry is still a competitor to iCrapple. The smartphone market that Blackberry focuses on is enterprise based (including BYOD now). Their share in the smartphone market didn’t “shrink” the pie just got much bigger, which a lot of analyst fail to realize. Smartphone technology got cheaper when data plans and carrier contracts began aligning to make it possible for the consumer market to join which resulted a growth that Blackberry was poorly prepared for. iCrapple was almost out of business prior to the iClone. Microsoft bailed them out. Blackberry is the ONLY smartphone supplier that has an end-to-end solution for the BYOD market. Secure communication from the hardware through to the enterprise network systems. They dominate this market and will continue to do so. Governments make very sound purchases and do their research, unlike the consumer market…ever hear of the term…buyer beware….this is because consumers are not that well informed….and anyone with an iCrapple or Droid device has NOT done their research before purchasing their phone. If they had, they would most certianly purchased a Blackberry ;)

    • I have extensively studied all three major platforms (competitive rivals) and sorry to say Android is smart and so is Apple due to they believe in simplicity unlike Blackberry. And not Apple should not buy Blackberry due to going forward is better than the opposite.

      • Dave ( DEVV), stop the BS already, the only thing you have studied is your navel. I see you everywhere on the ‘ Internet of BlackBerry ‘ with your stupidly. Shorting BlackBerry stock or any stock for that matter is a risky move. Cut your losses and move on because all you are doing is making an ass of yourself.

      • Considering you can barely put a sentence together, you seem like the perfect consumer for Apple. BlackBerry’s OS is intuitive and simple to learn. Yet people still feel the need to mash a big circle to go “home”.

  4. Sorry but your article doesn’t make much sense to me. I’m not even American but I think the US government can ask US companies abroad to hand over information. Think the recent lawsuit Microsoft versus US government is a perfect example. So, if Apple would buy Blackberry they still has to hand over all information under the Patriot Act. The only real thing Apple could do with its money, is to try to make those absurd, unconstitutional laws abolished or get them reversed. The real problem is the US government with its unconstitutional laws. Land of the free, right, on paper maybe and by paper i mean, not the US constitution. As an finisher, why the Americans don’t elect a guy like Ron Paul, beats me completely. No, people vote for a Bush, Obama or another puppet. The only reasonable moral person I personally noticed is Ron Paul and his record is awesome.

    • By the way, I never want Apple to buy BlackBerry cause personally I have never bought nor will I ever buy ANY Apple product, no matter how good they are. I have always found Apple or iOS limiting, no SD card, no removable battery, no hdmi, no easy file transfer (like music, etc) compared to other brands and outrageous prices for their hardware. Shiny toys until you drop em. Not intended to bash Apple users but my personal opinion, just my opinion. The Note 2 was my last Android device and the permissions for apps are just disgusting. If you don’t allow those apps access to your private stuff, big chance the app wont’t work at all. Never had this problem on my year old BlackBerry 10 device.

  5. I don’t think BlackBerry is for sale so it would have to be a hostile bid which might be very expensive and a failure.

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