BlackBerry Upbeat about Enterprise Services Biz in India - Analyst Blog

By Zacks Equity Research,

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According to an Economic Times report, BlackBerry Limited ( BBRY ) is expecting its enterprise services business to witness strong growth in India.  The driving factor in this regard is the insecurity of corporates in the country with respect to information leakage and their subsequent search for a strong communication systems security.

BlackBerry stated that the demand for the company's enterprise services - BES 10 and BBM Protected - are gaining market traction from Indian corporates. BlackBerry is also trying to push the sales of its voice-encryption solution.

BlackBerry Enterprise Service 10 (BES10) solution is a cross-platform product interoperable with Apple Inc.'s ( AAPL ) iOS and Google Inc.'s ( GOOG ) Android. BES10 provides flexibility, scalability, high security and cost-effectiveness to its customers. BBM Protected provides security sensitive organizations with improved security options for their corporate data.

BlackBerry is actively targeting the Indian market. In July, as per an Economic Times report, Blackberry introduced a novel service platform designed to cater to the needs of the growing health care sector. We believe the company's decision to expand its business in a developing nation like India will help drive its top line higher in the coming quarters.

The Canadian handset manufacturer is facing severe headwinds such as an ever-increasing competitive landscape, a stagnant product portfolio and unfavorable product mix. The company's handset business is also facing stiff competition from Apple Inc.'s iPhone and Google Inc.'s Android smartphones.

In the last reported quarter - first-quarter of fiscal 2015 - BlackBerry sold 2.6 million smartphones, down 62% year over year and significantly below Samsung's 85 million and Apple's 44 million mark. This indicates that the company is still seeing trouble with its high-end smartphones. This explains BlackBerry's natural decision of gradually shift focus from the handset business to enterprise services.

BlackBerry currently has a Zacks Rank #2 (Buy). Cellcom Israel Ltd. ( CEL ), with a Zacks Rank #1 (Strong Buy), is a better-ranked stock in the wireless industry that is worth considering.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: AAPL , CEL , BBRY , GOOG

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