What BlackBerry Ltd’s Health-Care Smartphone Says About Its Strategy

BlackBerry Ltd's (NASDAQ: BBRY  ) strategy to pursue niche markets where it holds an advantage may finally allow the company to flourish, Fool contributor Tim Beyers says in the following video.

CEO John Chen has been unambiguous in his desires to remake BlackBerry as something more than a device supplier. Specific goals include positioning the company as a go-to for "secure enterprise services." The idea? Outfit large clients with everything needed for airtight communications. The sort of infrastructure you'd expect when serving regulated markets, in other words.

Chen first articulated his vision in December. Now, four months later, BlackBerry is investing in privately held NantHealth, whose cloud-based network connects and manages medical equipment.

Reuters says the system already touches some 16,000 devices across 250 hospitals. As a next step, BlackBerry and NantHealth plan to create a smartphone imbued with tech for better viewing of 3D images and CT scans. Tim says it's a smart deal that plays to BlackBerry's historic strength.

Yet, investors should also understand the cost. In pursuing relevant enterprise niches. BlackBerry is slowly (and reluctantly) turning away from the massive consumer market that had been its bread and butter before sustained incursions from iOS and Android devices made it difficult to compete.

Now, it's your turn to weigh in. Do you believe in BlackBerry's strategy? Please watch the video to get the full story, and then leave a comment to let us know your take, including whether you would buy, sell, or short BlackBerry stock at current prices.

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Read/Post Comments (5) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 23, 2014, at 3:53 PM, cbglobal wrote:

    Not bad. Just that the "massive consumer market" was never part of Blackberry's business. All those people who bought an iPhone the last seven years came from a feature phone; not a Blackberry. Blackberry still has two-thirds of the commercial and government market. At the US DOD it is 95%.

  • Report this Comment On April 23, 2014, at 3:59 PM, devvvv wrote:

    RE:"Chen first articulated his vision in December. Now, four months later, BlackBerry is investing in privately held NantHealth, whose cloud-based network connects and manages medical equipment." How can you call that a vision when other providers are already in the race to cover that market? Apple and Google is entering that market in competition of each other. Why is Chen entering a market that poses big competition? Why did Blackberry have to invest in that healthcare company when it should have been the healthcare company investing it Blackberry?? Did Blackberry again just make a major mistake?

  • Report this Comment On April 23, 2014, at 4:03 PM, devvvv wrote:

    I don't think so cbglobal. Blackberry has lost 95% of its market share and is still continuing to drop at a alarming rate. The DOD is considering going with a different provider.

  • Report this Comment On April 23, 2014, at 5:53 PM, devvvv wrote:

    Re: "3 Reasons to Get Out of Canadian Stocks,,," now I understand what you mean, Apple SP just rose $40.00 wow

  • Report this Comment On April 24, 2014, at 3:27 AM, JJJoseph wrote:

    OMG, Dave! How'd you get out? What are you doing over here now? Why are you calling yourself "devvv" - is that your new, low-profile persona? Man, you're off to a good start with three posts already!

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