BlackBerry Retreats From Consumer Market
BlackBerry Ltd’s plan to retreat from the consumer market in favor of its traditional strength serving businesses and governments is widely seen as a desperate move that industry watchers warn will only accelerate its downward spiral.
The strategic shift and dramatic restructuring are fueling fears about BlackBerry’s long-term viability. The uncertainty created could easily push more of its telecom partners, business customers and consumers to abandon the platform.
“Perception is nine tenths of reality and if customer and supplier confidence continues to fall it doesn’t matter how much cash they have on the balance sheet. Things could get worse,” said GMP Securities analyst Deepak Kaushal.
At least nine brokerages slashed their price targets on the company’s stock, to as low as $5. BlackBerry’s shares, which fell 17 percent on the Nasdaq on Friday, fell another 5.6 percent to $8.23 before the bell on Monday.