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

stock analysis
Dividend Stocks

Buy These TSX Dividend Shares Next Week

Are you looking for dividend stocks to add to your portfolio? Buy these picks next week!

Read more »

Shopping and e-commerce
Tech Stocks

1 Tech Stock You’ll Be Glad You Bought When the Bull Market Starts

Historically, tech stocks have done well during bull markets. Here’s one you’ll be happy you bought before the next bull…

Read more »

edit Safety First illustration
Dividend Stocks

3 of the Safest Dividend Stocks in Canada

These three dividend stocks are all high-quality companies with defensive operations, making them some of the safest investments in Canada.

Read more »

data analyze research
Bank Stocks

Better Buy: Royal Bank Stock or Bank of Nova Scotia?

Bank stocks appear cheap after the latest plunge. Is Royal Bank or Bank of Nova Scotia a buy today?

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

3 Stocks to Anchor Your Portfolio in a Rocky Market

Three stocks are solid anchors in any portfolio today for their outperformance in a weak market and defiance of the…

Read more »

Metals
Metals and Mining Stocks

Better Metals Buy: Gold Stocks vs. Lithium Stocks

Gold is the evergreen choice as a hedge against inflation and weak markets. In contrast, battery metals may offer unique…

Read more »

Man making notes on graphs and charts
Bank Stocks

TD Bank Stock: A TSX Top Pick Amid U.S. Banking Rout?

TD Bank (TSX:TD) stock could prove a worthy bet for brave investors who aren't fearful over the recent wave of…

Read more »

edit Sale sign, value, discount
Tech Stocks

2 Cheap Tech Stocks to Buy Right Now

Many tech stocks offer exceptional returns compared to other stock sectors when the market is bullish. You can add to…

Read more »