This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Prepare for More BlackBerry Losses

Stocks in this article: BBRY NOK MSFT AAPL GOOG

Meanwhile, recent data compiled by independent research firm IDC, revealed that BlackBerry's global market share was cut by more than half in the recent quarter, falling from 6.6% global share to 2.9%. This is while both Apple and Google occupied a combined 92% share of the smartphone market.

While Apple and Google showed moderate growth, Microsoft (MSFT) was able to exploit BlackBerry's weakness, bumping BlackBerry down to the fourth spot of the order. Poor device sales are one thing, and in BlackBerry's case, it's no longer a surprise. However, the implication will have severe consequences on the services business, which has been my point over the past six months.

For instance, in the recent quarter the company's global subscriber base declined by another 5% to 72 million. This comes on the heels of a 4% drop from 79 million in the fourth quarter. So after the service business peaked at 80 million last summer there has been nothing but customer cancelations. Now, with weaker-than-expected device sales, enterprise customers have to consider shutting off (altogether) their BlackBerry Enterprise Servers (BES) -- if they still have one.

BES has been what has kept BlackBerry afloat amid poor sales. It served as the engine that allows users to get their emails and synchronize corporate calendars in a secure manner. The other option was to upgrade to the new BlackBerry 10 operating system. But what would be the purpose? Though the cost savings would be ideal, a shutdown of BES would also render the devices useless as they would lose what had once made them popular in the first place.

BlackBerry understands this reality. On June 25 management announced Secure Work Space, which is a newer version of BES. Unfortunately, it's not a "new" idea. BlackBerry also had this same service, but it was called Mobile Fusion, which brought along similar features that supports devices from competing platforms, including Apple's iOS and Google's Android. I don't believe this is going to work -- not without significant marketing expenses.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs