Blackberry has been experiencing a real decline in its market share for quite some time now, and John Chen gave the world hints that the company may decide to close shop if it doesn’t see some changes in the foreseeable future. Well, Blackberry has recently recorded a sharp jump in software and licensing revenues, and we can say this is good news for the John Chen led board.
This gain in revenue will be offsetting a steepening decline in legacy system access fees for the first time in over two years. The company has been making investments in software and hardware after its market share in the hardware market took some dip. John Chen has said he will be eyeing a return to sustained profitability by 2017 if this increase continues.
After its handsets lost domination of the market to Android and iOS devices, Blackberry has hit some real software deals. The Morningstar analyst Brian Colello has this to say about the recent change in fortune, “I think Blackberry’s investment in software and security is the best they could possibly do, this move seems to be the right one.”
The latest developments have been driven by a sharp jump in the patent and software licensing revenues, an increase in the average sales of the android-powered Blackberry Priv is also a reason they have this spike in profits.
“We will be bringing many other Android Smartphones very soon, but that can only be achieved if the Blackberry Priv is accepted in over 30 countries this quarter,” said John Chen at a media roundtable. John Chen who has seen the hardware business turning the corner as agreed to license some of its proprietary software features to other phone makers. John Chen recently said, “I have said that ‘if we cannot make money we are going to get out of the phone business for good; if we can’t make hardware, we will still be make softwares, and we have softwares that can run on Android, Apple and Windows phones. We will still remain in the phone business one way or the other, but has it is now, we will still enjoy making phones and licensing softwares if they bring in lots of revenues.”
In the quarter that ended on November 28, Blackberry reported a loss of $89 million, that’s lesser than the $148 million they lost in 2014. The company experienced a 31% quarterly fall in 2014, but it had managed to get increased12% quarterly revenue.
Blackberry also gained software revenue that doubled what it gained in previous years, making it quite possible for the company to hit a $500 million mark before the fiscal year ends on 29th February 2016.
After the release of the Priv, Blackberry experienced a rise in the sales for the first time in four quarters. The company sold over 700,000 mobile devices, about 100,000 lesser than the sales in the prior period, but that still averages the selling prices that jumped from $240 to $315.
Let’s wait and see how blackberry gets out of the trouble waters, hopefully, we may be getting to see some cool Blackberry Smartphones in future.