BlackBerry’s hardware business has declined fast
It’s no secret that BlackBerry (BBRY) continues to struggle in the smartphone market. We can see this from the fact that its hardware revenues continue to fall fast, from $365 million in fiscal 3Q15 to $214 million in fiscal 3Q16, as the chart below shows. BlackBerry also continues to lose its share in the smartphone operating system market.
According to a report from Strategy Analytics for 3Q15, Google (GOOG) Android and Apple (AAPL) gained market share while Microsoft (MSFT), BlackBerry, and Firefox lost smartphone operating system market share. BlackBerry’s share has fallen so much that even a relatively unknown player, Tizen, has overtaken it at fourth position, according to the report.
BlackBerry is hopeful that its hardware business will break even soon
Despite this decline, BlackBerry’s management is hopeful that the company’s hardware will break even in a quarter or two. It also mentioned that it’s not considering making any strategic decision on its hardware business now. A strategic decision could mean a sale or spin-off or simply closure of its hardware business.
BlackBerry continues to make a lot of efforts to grow its smartphone business. Last year, it decided to adopt Google’s Android operating system for its smartphones in hopes that traction for its smartphone business would increase as users access more apps. In 2014, the company also launched the Passport and Classic smartphones with little success. BlackBerry also released the Leap smartphone in April last year, which again saw limited success. The company’s low-priced Z3 smartphone saw some success in emerging markets (EEM), but this was too little and too late.