Back in 2016, Emtek and BlackBerry forged an alliance to advance BBM. That also meant the consumer version will sunset on May 31, 2019. BBMe or Enterprise BBM will replace it. This move is, sadly, overdue. The free instant messaging market is unprofitable and does not add meaningfully to BlackBerry’s revenue. Still, this does not imply that BBMe will do anything positive for BlackBerry.
BBMe will make its enterprise-grade encrypted messaging platform available to BBM customers. The app will be free for the first year. Then, the first six months will cost $2.49. Investors may expect that heavy competition from other messaging app providers will hurt BBMe’s prospects. Signal and WhatsApp offer encrypted messaging. Google’s Hangouts and Apple’s iMessage are good enough. And in China, We Chat faces little competition from other IMs.
While taking BBM out of the consumer spotlight will diminish demand for BlackBerry smartphones, sales for the device are already negligible. In effect, BlackBerry strengthens its enterprise suite of apps.
BlackBerry’s Cylance
CEO Chen is determined to grow BlackBerry through Cylance. Endpoint management and embedded software are growth areas, albeit mixed. The former is already crowded and firms in this space are not growing. Embedded software, Appliances, and IP licensing could grow BlackBerry’s cash flow. For that reason, investors may consider buying BB stock only in the $7.50 - $8.50 range. The next uptick will not come until the next earnings report, at the earliest.
