This Day On The Street
Continue to site
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

Could BlackBerry Be Worth More Sold in Pieces?

NEW YORK (TheStreet) -- The only thing that can be said with any kind of certainty about BlackBerry (BBRY - Get Report) is that there's little about the company's future that's entirely certain.

"It's about as hazy as it can get for a company," noted Brian Colello, an equity analyst at Morningstar.

In a statement emailed to TheStreet, BlackBerry says that while devices remains important for the company, it's focusing on a variety of services and solutions.

"While the BlackBerry namesake handset is what made us a leader in mobile communications, the company today provides solutions across devices, messaging, enterprise software and services, and embedded systems through our QNX Software Systems technology," the company said. "Devices remain an important part of our end-to-end offering, and we are continuing to build this business while focusing on professionals and business customers who require secure technologies that drive productivity, communications and collaboration."

BlackBerry said that no other company is in a better position to provide customers, particularly those in regulated industries, with a secure enterprise mobility solution.

"We have a clear vision for the future and a sound platform that will help customers capitalize on future opportunities such as the Internet of Things."

It remains to be seen how the company approaches monetizing that security technology; whether it will sell the technology itself or partner with an IBM (IBM) or Accenture (ACN) to get it to market. Since this is a very niche area that hasn't been commoditized like the consumer devices market, chances may be higher that BlackBerry may be able to find success and profitability there. But profitability will likely extend into the millions, rather than billions of dollars, given the size of the market.

With that, the surest future for Canada's BlackBerry may be a scenario where a number of suitors for its enterprise security business come forward. Meanwhile, the company may wind up ceding full or partial control of its consumer devices name and business to a big manufacturing partner in the process of deepening its enterprise services.

Hon Hai/Foxconn, which partners with Apple (AAPL - Get Report) on the iPhone, already has a manufacturing partnership with BlackBerry that allows BlackBerry to focus on its core competency in security and enterprise mobility management.

"Simultaneously, EMS/ODMs like Hon Hai have been looking to move up the value chain and already has 'white label' device manufacturing arrangements with a few Telcos, so it wouldn't be a huge step to envision a future in which Foxconn acquires the [BlackBerry] handset business and brand name," says Reuben Chaudhury, a partner with A.T. Kearney and leader of the Americas communications, media, and technology practice. "This would give BlackBerry a valuation based on a potential future volume that is significantly higher than the current volume and allows it to focus on its core competency."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
BBRY $7.09 0.00%
MSFT $50.16 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs