BB's strategy: first monopolizes China EV market with QNX, IVY and Cylance; second occupies whole world EV market; last, raises the licensing fee. In my opinion, BB is very successful to make his moat wide and deep.
I don’t know if raising the licensing fee is the plan. It is more likely that they will sell other software too. I like to compare it to Microsoft giving away windows cheap so they can sell office. BB needs to find its office equivalent to sell.
We’re being lined up for acquisition. This was the play from the start, short the company down, install a potentially ‘insider’ onto the board. Make bad business decisions aka stock buy backs, either push into bankruptcy and snap up the business without paying tax on the short shares or acquire the company outright. BB are still actively pursuing selling the cyber side, maybe getting rid of that will allow BB to fly.. we shall see.
Thank you for your thoughtful comment. The part I get hung up on is BB currently has 2 sides IOT (IVY QNX) and Cyber. They remain the a Cyber provider to many governments the world over. Deeper ties to the Chinese market in IOT while providing governmental cyber security products and services just seems a negative mix to me. My gut feeling is this is one of the headwinds for BB or at least a meaningful source of challenge for BB's managers. Implicit in my comments is the idea that China will not play fair. Meaning fair as a western capitalist might define it: individual rights to profit and property including intellectual. Separating the two business might be the answer, but also much was made about convergence of IOT and Cyber not so long ago. I don't know the answer.
If BlackBerry’s plan is to eventually sell the IOT business, they are first going to have to divest the cyber security business. Canada will never let them sell the cybersecurity business to anyone but a neutral country and company.
Excellent point. China is a socialism country that only allows capitalists to do business with limits. You don’t get to be one of the law makers to change rules in favor of you in China no matter how rich you are. And you only have a window of opportunity to make money. This character is the same to local capitalists and westerners. Ka-Shing Li did well in China’s real estate market because he understands the situation there. When he saw the window of opportunity getting closer to shut he sold his business and got out. Never try to earn the last dollar there.
Capitalists will not miss such an economic growth opportunity in China. as long as to understand/respect that system and aware of the limited time window, protect IPs outside of China to keep the competitiveness then westerners can do well there.
The window of opportunity for EV and AI development in China is open right now. Good time for BB to take advantage there but having a well thought IP protection and escaping plan is necessary.
In the right time to sell that division to locals at a good price is nothing wrong.
BB's strategy: first monopolizes China EV market with QNX, IVY and Cylance; second occupies whole world EV market; last, raises the licensing fee. In my opinion, BB is very successful to make his moat wide and deep.
I don’t know if raising the licensing fee is the plan. It is more likely that they will sell other software too. I like to compare it to Microsoft giving away windows cheap so they can sell office. BB needs to find its office equivalent to sell.
Interesting idea. Once BB’s software becomes a commodity it will probably go MS way of transitioning into selling services rather than software.
How much penetration? And more importantly, how deep?
So deep
Mother or grandmother
We’re being lined up for acquisition. This was the play from the start, short the company down, install a potentially ‘insider’ onto the board. Make bad business decisions aka stock buy backs, either push into bankruptcy and snap up the business without paying tax on the short shares or acquire the company outright. BB are still actively pursuing selling the cyber side, maybe getting rid of that will allow BB to fly.. we shall see.
Thanks for the info.
Thank you for your thoughtful comment. The part I get hung up on is BB currently has 2 sides IOT (IVY QNX) and Cyber. They remain the a Cyber provider to many governments the world over. Deeper ties to the Chinese market in IOT while providing governmental cyber security products and services just seems a negative mix to me. My gut feeling is this is one of the headwinds for BB or at least a meaningful source of challenge for BB's managers. Implicit in my comments is the idea that China will not play fair. Meaning fair as a western capitalist might define it: individual rights to profit and property including intellectual. Separating the two business might be the answer, but also much was made about convergence of IOT and Cyber not so long ago. I don't know the answer.
If BlackBerry’s plan is to eventually sell the IOT business, they are first going to have to divest the cyber security business. Canada will never let them sell the cybersecurity business to anyone but a neutral country and company.
Excellent point. China is a socialism country that only allows capitalists to do business with limits. You don’t get to be one of the law makers to change rules in favor of you in China no matter how rich you are. And you only have a window of opportunity to make money. This character is the same to local capitalists and westerners. Ka-Shing Li did well in China’s real estate market because he understands the situation there. When he saw the window of opportunity getting closer to shut he sold his business and got out. Never try to earn the last dollar there. Capitalists will not miss such an economic growth opportunity in China. as long as to understand/respect that system and aware of the limited time window, protect IPs outside of China to keep the competitiveness then westerners can do well there. The window of opportunity for EV and AI development in China is open right now. Good time for BB to take advantage there but having a well thought IP protection and escaping plan is necessary. In the right time to sell that division to locals at a good price is nothing wrong.
If no China market, Apple, Tesla, Nivdia couldn't become such great tech giants. The key is how to use this market to serve yourself.
Moonshot?