Strategy Shift Boosts BlackBerry Shares

News   •   Aug 13, 2013 07:00 BST

It has been a tough couple of years for BlackBerry, what with a good chunk of its consumers jumping ship to other smartphone brands. The company is not about to wave the white flag in defeat just yet, and is keen on showing that they do have some fight left in them still.

A recently introduced change in strategy may be working for the company, as evidenced by a boost in its shares. It does not necessarily mean they are clearly out of the woods already, as the company itself has acknowledged it may take some more time, but hopes are high that they are indeed on the right track.

BlackBerry's shares in New York reportedly made a 5% leap, thanks mostly to the recent change in leadership, as well as the news of an impending shareholder buyout. Should the buyout push through, this would mean more time and opportunity for the company to navigate towards a more stable future. Any new developments in the pipeline could be smoothly implemented, no longer under the prying eyes of the shareholders.

There is, however, a tradeoff to this scenario. If the buyout commences, the partners would then have to plug in billions of dollars to replace the investment that the shareholders will be taking with them when they walk out that door. As it stands, BlackBerry is already in the red, losing as much as US$84 million in the last quarter; the prediction for the next isn't any brighter at this point. To have to pony up that big an amount following these losses can only translate to bigger financial problems for them in the immediate future.

Nonetheless, BlackBerry remains hopeful that things will turn around for them soon, with a new flagship phone, the BlackBerry Z30, reported to be on its way and many BlackBerry phone deals at