Blackberry Ltd. (NASDAQ:BBRY) is certainly working out as a turnaround story under the leadership of its CEO, John Chen. The move by the CEO to focus on the core competencies of the brand rather than just smartphone sales has worked well, as the improved quarterly earnings also indicate.
Blackberry Ltd. (NASDAQ:BBRY) adopted a new operating unit structure under John Chen, essentially Enterprise Services, Messaging, QNX Embedded businesses and the Devices business to focus on its strengths. Here is a quick look at how each unit has fared.
The brand is a clear leader when it comes to enterprise services, with a market share larger than its top three competitors (Good, AirWatch and MobileIron) combined, owing to its robust and secure mobile collaboration and communication. Its biggest installed bases are in the government and G-7 countries, apart from highly regulated industries. In fact Blackberry Ltd. (NASDAQ:BBRY) has recently received a key security clearance from the U.S. Defense Information Systems Agency (DISA) that will allow BES 10 to manage and secure devices powered by Android and iOS.
BBM, the Blackberry Ltd. (NASDAQ:BBRY)’s messenger service, which is now available across the Android, iOS and Windows platforms, has also been doing well. BBM currently has around 85 million monthly active users, giving it a 5% market share globally and is well on its way to achieve the 100 million target by year end, taking into account that the app was among the top downloads after it was released in Google’s Play Store, according to reports. Additionally, BBM protected with its end-to-end security promise to enterprise users has no comparable competitor.
Blackberry Ltd. (NASDAQ:BBRY) QNX operating system is also a leader in the automotive infotainment systems space. Infotainment systems control the information, communication and entertainment in a vehicle. The 40 million units market is estimated to grow to 130 million by 2020 though the software licensing fees are relatively low.
While it is well known that the latest data from Nielsen On Device Meter (ODM) reveals that Blackberry Ltd. (NASDAQ:BBRY) is still the top brand in Indonesia, and the recent Kantar World Panel indicated that the brand is on a revival in the U.S. as well. The market share of Blackberry Ltd. (NASDAQ:BBRY)’s OS has gone up from 0.6% in January 2014 to 2% in June 2014, a 233% growth in just six months, when the company has not conducted any aggressive marketing campaigns.