A lukewarm launch of BlackBerry's top-of-the-line smartphones and lower than expected sales numbers have left the Canadian company's investors searching for answers, but experts said it is just the start of a long rebuilding process.
Speaking at the company's annual shareholder's meeting on Tuesday, BlackBerry CEO Thorsten Heins told investors the company is "in the midst of a major, complex transition." He said the company is in the second stage of a turnaround, but profitability will not be until stage three. In late June, BlackBerry — which officially changed its name from Research in Motion on Tuesday — announced it shipped a million fewer smartphones than expected.
"While many will judge our short-term success on unit sales in a single quarter, we are not a device-only company," Heins said, referring to the company's software, including enterprise-level security and BlackBerry Messenger, which recently launched on iPhone and Android.
BlackBerry has been struggling to stay level with other smartphone makers, and did not make the top five handset manufacturers in May, lagging far behind Apple and Samsung, according to comScore MobiLens, which tracks smartphone market share.
Still, this is not necessarily the end for BlackBerry, analysts said.
"I don't think it was realistic to expect he would turn it around in one quarter," said N. Venkat Venkatraman, a management professor at Boston University, referring to Heins. "I think they have a chance to be a credible third player."
"They can live to ride again, but it's not a good sign," said Roger Kay, president of Endpoint Technologies Associates.
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