BlackBerry Ltd. (BBRY) has shot itself in the foot over losing so much ground in the smartphone wars. Google Inc. (GOOG) has taken over market share, and Apple Inc. (AAPL) remains the leader in higher-priced smartphones with its key iPhone 5 variations. News came out on Tuesday that BlackBerry has launched a BlackBerry P'9982 which is designed by Porsche.
Do you think this will matter? BlackBerry has lost every almost developed world consumer level customer outside of employees at enterprises, and it seems to be losing them rapidly as well. This is the P'9982 and reports have the limited edition version of the phone selling for some $2,250 according to the AllThingsD technology blog.
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Here is the problem with BlackBerry, and this problem reigns true whether Porsche, Ferrari, Rolls Royce, Rover, or a UFO-maker builds the next BlackBerry. It is just about too late to matter. The new CEO is very able, but he is coming in so late after so much carnage and after a failed company sale that it seems as though company is in an impossible position.
The latest market share data showed that Google has taken over the world in smartphone market share with its Android operating system. That was cited as being due to price, and Google's growth and core search operations are keeping its stock above $1,000 per share. Apple's iPhones are generally higher priced, and the iPhone 5 refresh cycle seems to be keeping its stock price above the $500 share price.
BlackBerry is not winning because of any price issues nor because it did not have a Porsche design. The Blackberry lacks the core bells and whistles that the younger consumers just love. Its shares closed down on Tuesday by -1.5% at $6.07 and if things were any good here they would be back above the prior $9.00 or so buyout price. instead they are one-third less than the buyout price.
A Porsche-designed smartphone cannot save BlackBerry. Its new CEO will have to create a minor miracle to change this company's fate, and being able to drive 200-plus kilometers miles per hour on the Autobahn isn't the ticket.