BlackBerry Ltd (BBRY)’s Shipments Are Up; But Full Recovery Is Yet To Be Seen


BlackBerry Ltd (NASDAQ:BBRY) may have shipped more phones in the second quarter of the year but the company’s full recovery is yet to be seen, Bloomberg’s Gerrit de Vynck said in an interview on “Taking Stock”.

BlackBerry, is BBRY a good stock to buy, Gerrit de Vynck

The remark about BlackBerry Ltd (NASDAQ:BBRY) from the Bloomberg reporter comes after the phone manufacturer is reported to have shipped 15% more phones in the second quarter  compared to the first quarter of the 2014 fiscal year. The data come from a release by the International Data Corporation (IDC).

As positive as that increase in BlackBerry Ltd (NASDAQ:BBRY) may sound, de Vynck offers a word of caution.

“[…] That means they shipped about 200,000 more phones than they did in the first quarter, which sounds like good news, but we have to look at it in the context of compared to last year, that’s 78% fewer phones, or almost 5 million fewer phones, they shipped this quarter than they did the same time last year,” he explained.

Furthermore, de Vynck said that it is yet to be seen whether BlackBerry Ltd (NASDAQ:BBRY) will continue on its road to a full recovery.

“John Chen came in December. He has kind of initiated his restructuring, his turnaround plan, giving a lot more confidence to investors and probably to CTOs who make those decisions to buy those phones. You can look at it and say, ‘Well, it looks like people are at least not getting rid of them or at least not ignoring those contracts as much as they maybe were throughout the past year,’ but it’s still just one quarter and we still have to see how they are going to keep moving forward with it,” he said.

Meanwhile, the de Vynck said that the data from IDC did not indicate what models of BlackBerry Ltd (NASDAQ:BBRY) phones did well in the second quarter. He pointed out that when the current CEO John Chen assumed his role, he brought back the BlackBerry Bold that has a QWERTY keyboard which people were clamoring for after the phone maker shifted to more touch screen devices.

Furthermore, he said that from the IDC data, it can be understood that BlackBerry phones are still popular in some emerging markets such as Indonesia. De Vynck also pointed out that Chen has brought out more affordable phones for those markets, which may have contributed to the rise of shipments from the once-mighty mobile technology company.

As de Vynck also said, Chen has moved the company to selling more of an integrated secure communications system to large enterprise customers, though it now still commands just a small share in the smartphone market. Nonetheless, the slowing of the decrease in BlackBerry market share is a good sign for the company.

Disclosure: None

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