2 Upcoming Devices Bode Well for BlackBerry

BlackBerry needs to build momentum to move forward.

| More on:
The Motley Fool

After releasing BBM Voice and Channels for iOS and Android, BlackBerry (TSX:BB)(NASDAQ:BBRY) is still building its momentum to move forward. Z3 specifications leaked online, suggesting a budget five-inch BB10 device will be launched. This is important, because BlackBerry needs to position BB10 in the developing world. With its shares trading in the middle of its yearly low and high, Z3 might favor the bulls.

Z3 ‘Jakarta’ specs

Codenamed Jakarta, Z3 is priced at between U.S. $162-$210. The phone will have a five-inch screen, a dual core 1.2GHz processor, 8 GB of storage, and 1.5 GB of memory. The smart phone will run longer than a Z10, thanks to a 2650 mAh battery (the Z10 has an 1800 mAh battery). BlackBerry’s most powerful BB10, the Z30, has a 2,880 mAh battery and a dual-core 1.7GHz processor.

The Z3 could also come to Canada, since some images of the phone show Cineplex and Yellow Pages apps.

Foxconn deal reduces risk

BlackBerry reduced inventory and manufacturing risks associated with BB10 production by transferring those responsibilities to Foxconn. If Z3 reaches Canada, it could appeal to both consumer and enterprise customers. At present, enterprise customers overwhelmingly prefer a keyboard-based Q10 over the Z10.  Consumers showed they preferred all-touch devices with big screens. When BlackBerry released the Z30, Rogers Communications initially said it would not carry it. The telecom firm reversed its decision after a consumer backlash.

Z3 must be low-price

To be successful on the consumer market, BlackBerry needs to sell the Z3 at a low cost. Positive word of mouth from those open-minded enough to test BB10 will help BlackBerry’s market share loss. It would also counterbalance BlackBerry’s reduced advertising spending for BB10 in the consumer market.

Still no Q10 successor

BlackBerry has yet to release a refresh to the Q10. This device badly needs a bigger screen. Ideally, a Q10 refresh will have the screen size of the Z10 but with the iconic physical keyboard.

Foolish bottom line

BlackBerry is only getting started in releasing new BB10 phones to market, but has more challenges ahead. For the product to gain market share, it needs a solid low-end device that competes effectively with Microsoft’s (NASDAQ:MSFT) Lumia. BlackBerry needs to price a mid-range phone more competitively than the current Z10/Q10s. Finally, more carriers need to make the high-end phone (Z30) more widely available. If these conditions are satisfied, the phone refresh should bode well for BlackBerry’s bottom line.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris Lau owns shares in BlackBerry.

More on Investing

Stacked gold bars
Metals and Mining Stocks

B2Gold: Buy, Sell, or Hold in July 2025?

B2Gold has churned out positive news so far in July. Here's how I'd "trade" the TSX gold stock this month.

Read more »

woman checks off all the boxes
Dividend Stocks

CPP Collectors: Here Are 3 More Red Flags the CRA is Watching

Worried about the CRA? Stop immediately by taking these steps and investing wisely.

Read more »

Financial analyst reviews numbers and charts on a screen
Stocks for Beginners

1 Stellar Canadian Stock Down 47% From Its All-Time High to Buy and Hold Forever

Down sharply from its peak, this top Canadian stock is setting itself up for a long-term comeback backed by a…

Read more »

some REITs give investors exposure to commercial real estate
Stocks for Beginners

A 3.4% Dividend Yield? I’m Buying This Dividend Darling and Holding for Decades

Grab this dividend yield while it lasts, and never worry again while holding the top choice on the market!

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

This 7.4% Dividend Stock Is My Top Pick for Immediate Income

With a solid 7.4% dividend yield, a proven history of dividend growth, and strong fundamentals, it offers both stability and…

Read more »

Hand Protecting Senior Couple
Dividend Stocks

How Should Canadians Calculate the Perfect Retirement Income for Maximum Benefits

Here's how Canadians should calculate the perfect retirement income for maximum benefits.

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

1 Canadian Railway Stock That’s Built for the Long Haul

A Canadian railway stock with solid growth fundamentals and a network that connects a continent is built for the long…

Read more »

Piggy bank on a flying rocket
Energy Stocks

The 6% Dividend Champion Built for Income Investors

Income investors seeking a great stock that can provide both growth and income over the longer term should strongly consider…

Read more »