As the company misses its predicted financial goals for the second quarter, it has launched its latest turnaround strategy.
As BlackBerry continues to watch the sale of its smartphones withering, CEO John Chen has announced that he is launching a controversial new way to draw appeal back to these mobile devices: Android.
Until now, the company has always based its smartphones on its own operating system.
This new strategy will have BlackBerry mobile device running on an operating system from another company for the first time. This will occur in the form of the upcoming Priv smartphone that will be launched later this year. That gadget is going to be built on the popular Android operating system from Google. This has been a decision that has been greatly debated at BlackBerry and that Chen has admitted is still considered to be quite controversial there.
The decision to take on Android could allow the company to overcome a main challenge to their mobile devices.
Chen explained that one of the primary reasons that people have not been picking up BlackBerry smartphones is because the operating system doesn’t allow for many of the favorite popular apps that consumers want to be able to use. Many customers and businesses wouldn’t mind the smartphones but the apps they want or need just aren’t available on the company’s operating system. However, by releasing gadgets that are based on Android, this allows the company to completely sidestep that issue.
Chen explained that “I am now going to eliminate apps as an excuse not to buy our phone,” adding that “We’ll see how it goes.”
In the middle of all the financial struggles that BlackBerry has faced over the last handful of years, the limited number of apps – and the lack of the most popular apps – has been a constant and sizeable problem that has worked against the company.
Chen attempted to partner with the Amazon Appstore in order to put that problem behind them in 2014. Amazon’s mobile app offerings are already in the thousands for Android based device users. However, the failure of Amazon’s own smartphone left Chen with less than he had hoped. Now, the goal is to show that the Priv will provide customers with everything they want and expect from the brand’s mobile devices, but with the app offerings that have been missing.
The mobile space is growing as retailers change how they engage consumers
The holiday season may be a major opportunity for companies involved in mobile commerce, especially social media companies that are working with retailers. A recent report from eMarketer predicts that retail sales in the United States will grow year-over-year by 5.6% this year. Mobile commerce is expected to play a significant role in this growth, with mobile sales growing 32% year-over-year by the end of 2015. Many consumers are expected to use their mobile devices to get their holiday shopping done this year.
Better smartphones are improving the mobile shopping experience
According to the report, an estimated 25% of all e-commerce transactions are expected to be made through a smartphone in the United States. Consumers are beginning to rely more heavily on these devices, as they represent a more convenient way to shop. Advances in smartphone technology and design have further increased their attractiveness to mobile shoppers. Larger screens have made it easier for consumers to browse digital stores and purchase products. An enjoyable mobile shopping experience makes it more likely that consumers will continue to participate in mobile commerce.
Social commerce is growing quickly
As mobile shopping continues to experience healthy growth, social networks are beginning to play a larger role in the mobile space. These companies have been involved in the mobile world for several years, but have only just begun to participate in mobile commerce. Companies like Facebook, Twitter, and Instagram are indulging in a new concept called social commerce, which involves selling products online through social networking sites. Social commerce is becoming a strong tool for retailers, especially those that want to engage mobile consumers. Many consumers favor using their mobile devices to visit social media sites, which has created new opportunities for retailers.
Consumers see mobile commerce as more convenient than visiting physical stores
Mobile commerce is expected to see significant growth over the holiday season. As in previous years, consumers are expected to use their mobile devices to get their shopping done and avoid large crowds at physical retail stores. The convenient nature of mobile commerce has proven to be quite attractive to consumers and more retailers are focusing more heavily on the mobile space.