Why Is Lenovo So Desperate To Acquire BlackBerry (BBRY)?

Must Read

The marriage between BlackBerry and Lenovo seems quite ethical this time. Yesterday, another Lenovo ‘s executive has hinted that the company has opened the door to acquire the beleaguered Canadian smartphone company. Talking with the French Financial paper Les Echos, Lenovo’s Chief executive—Yang Yuanging—told in statement that the deal between both the companies could make sense in future.

The Executive said, “As for BlackBerry, the file could possibly make sense. But first I have to analyze the market well and understand what is the exact weight of this company.” (as translated via Google Translation)

In January this year, a Lenovo chief financial officer–Wong Wai Ming–told Bloomberg that the company was looking to extend its mobile presence across the world, which also includes the acquisition or licensing of BB10 OS. The Chinese vendor (Lenovo) is well-known for its line of desktop and notebook computers, besides, the company has proven itself as one of the potent smartphone vendors in its domestic market; the company succeeded to grab second position in terms of smartphone shipments in Q3 2012. This time, Lenovo’s aggressiveness towards acquisition of BlackBerry (BBRY) is depicting how much conscious it’s about mobile business.

Lenovo Would Try To Acquire BlackBerry

Yesterday, BlackBerry’s stock price jumped up 14%, closing at $14.90, following the chatter related to Lenovo’s CEO’s statement. Currently, the Canadian company is betting the entire company on the success of its new BlackBerry Z10 smartphone to standalone its mobile business across the world. However, the sales of the Z10 haven’t been as much impressive as it was expected earlier, and it’s tough to predict whether the company’s latest device could rescue the company or not.

Advertisements

We have already discussed that BlackBerry’s CEO–Thorsten Heins–wouldn’t in the favor to sell out the company–neither hardware division nor software. But, he had kept an option open for hardware vendors for licensing of BB 10 OS.  Lenovo has currently the popular ThinkPad PC business, and it could potentially capitalize these two friendly businesses. This time, Lenovo is selling Android smartphones, which are mostly China and Asian countries-specific. If the Chinese PC vendor succeeds to acquire BlackBerry, then it would have opportunity to clinch a big chunk of global smartphone market share.

 

BlackBerry Lenovo

Does Lenovo’s decision make any sense? However, we shouldn’t consider Lenovo’s CEO’s decision as the company’s official stance; it might be the executive’s own perception. Of course, Lenovo will saddle its all efforts to persuade BlackBerry, because the company could understand the importance of the brand value, especially with BlackBerry, which has created stronghold among corporate users.

BBM On Android Devices

If Lenovo succeeds to purchase BlackBerry, then definitely, it would be a great hearsay for consumers as well. Undoubtedly, with BlackBerry, the Chinese smartphone vendor could attract a significant number of businesses and professionals, those are quite conscious with security issues.

Apparently, it would be interesting to see integrated BlackBerry services on Lenovo’s Android-powered smartphones. Indeed, it would be impeccable to talk with BBM friends on Android devices, and even playing through BBM Money, which has recently been launched by the Canadian smartphone maker. Over past few months, BlackBerry has been endeavoring to build up a strong mobile ecosystem. Which can be understood with the availability of 70,000 mobile apps for BlackBerry Z10 till its launch.

BlackBerry Doesn’t Want To Launch Smartphones At $50-60 ?

BlackBerry’s CEO has recently reported Bloomberg that company hasn’t any plan to get into $50-60 smartphone market segment. Besides, it’s also tough for many to believe  BlackBerry would get into the $100-$200 price segment, as the competition is quite high in this segment. Despite, a considerable number of BlackBerry enthusiasts want that the company should launch its high-end smartphones at the price tags ranging $200-250.

Advertisements

However, over past few months, Blackberry’ subscribers base grew in some markets like Nigeria, the Philippines, South Africa,  and Indonesia, which helps the company to offset its losing grip on markets like North America and Europe. In addition, the BlackBerry’s sub growth has also declined in Africa and Asia due to intense competition offered by Samsung and other local vendors such as Spice and Micromax. Despite, people still don’t expect much from the company, especially to produce a smartphone that is cheaper than smartphones those are offered by local vendors. But, it should intend to get into the price segment where smartphone volume growth is now exploding.

In Q4 2012, Lenovo succeeded to push itself among top five smartphone vendors with 4.4% global smartphone market share; shipped 9.5 million smartphone during the quarter. On the other side, global smartphone market share of BlackBerry declined to its all time low during the last quarter, reached to 3.5%. What are you thinking right now? Are you still believing that Lenovo shouldn’t try to persuade BlackBerry?

2 COMMENTS

  1. amit6060 it will help them to gain market share in the country like India & many developing country.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

With 9.8 Million Users Coursera Observes Boom Of Online Education In India

The global outbreak of Covid19 has changed the lifestyle of people and almost every industry has resorted...

TikTok Oracle Deal: An Eyewash Or Mockery?

On Saturday, within few hours of US Department of Commerce announcing the ban on TikTok that would prevent users to download TikTok...

Apple And Google Are Changing Norms: Go Default with Gmail and Chrome On the New iOS 14

For long Apple iPhone and iPad users are forced to use Gmail and Chrome as an optional service on their devices. The...

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online store in India today, the...

The Advantages of Java Logging

If you're a fan of Java logging, you already know that there are three main types, Log4j, Log4j2, and SLF4j. They all...

Jio Postpaid Plus Plan Offers Free Netflix And Amazon Prime To Give Airtel and Vi Run For Their Money?

The just launched Jio Postpaid Plus plan is making heads turned. Just when you think Mukesh Ambani led...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This