BlackBerry sets new course; prefers software over hardware

Staying with technology, ailing handset manufacturer BlackBerry's interim CEO John Chen says he wants to emphasise on software and services and not devices. CNBC-TV18’s Malvika Jain finds out how the company would monetise its instant messenger service – BBM which added 20 million new users within the first week of becoming available across platforms.

Fairfax Financials, the largest shareholder of smart phone maker, BlackBerry, along with other institutional investors, will inject USD 1 billion into the company through private placement of convertible debentures within the next two weeks. BlackBerry is also witnessing a change of guard with John S Chen as its new interim CEO and Prem Watsa the present chairman and CEO of Fairfax as the lead director.
John Chen, interim CEO, BlackBerry says “BlackBerry employees need to start thinking differently about the company and accept that we're really not in phones but we're in phones for software, for services."
Ivor Soans, MD, Firstpost Business says “I won't say handsets are redundant for BlackBerry. I think its clear that BB is cutting down on number of handsets. I think you are going to see an increased focus on BB10 and four handsets over there I think the larger picture is that BB is trying to become a leader in software driver mobile computing solutions.”
According to industry analysts, BlackBerry's handset market share dropped to 0.7 percent in July this year. A key feature of the device, BlackBerry messenger is now available across platforms including - Google android and Apple ios. The question, however, remains that how will the waterloo based company monetise its messenger service?
Sunil Lalvani, MD, BlackBerry India says “Our first step is to create a really strong, engaged social community of instant messaging users out there irrespective of these three platforms. Once we have done that the endeavour is then to launch BBM channels. Channels will be the next level of evolution. It will really be BBM channels talking about the socially engaged groups, brands, individuals, corporates, you can name any kind of socially engaged community and that can be formed and leveraged upon BBM.
Soans also adds that “One of the first things that BBM or BlackBerry will do with BBM is not really focus on monetisation but focus on numbers. They are far behind whatsapp.”
As BlackBerry embarks on a new journey, analysts will closely watch how the company repositions itself.