BlackBerry: Cooperation with Amazon is in good shape

According to U.S. media reports, the company has just released its first-quarter earnings report that surprised almost everyone. It shows that the company still has vitality, and investors may wonder how the company will grow in the future. Significant progress has been made in the business of the company, even in the hardware business, but the continuation of this momentum may require cooperation with Amazon.

Fortunately, there are several promising development projects in BlackBerry's product pipeline, especially software and services, which will help keep it up. For example, the partnership between BlackBerry and Amazon is very important because software and services now make up a large part of their business. The new BlackBerry may be better known than hardware in software and services, and the partnership with Amazon is a significant step forward.

Although it may be hard to believe, there are the following reasons why the future of BlackBerry may really be optimistic.

Project Progress

The company tried to stop the sharp decline in revenue and profits, the first quarter, BlackBerry revenue fell only 1%, net profit of 23 million US dollars. At the same time, BlackBerry reduced operating expenses by 57%, resulting in a 5% improvement in gross profit margin. In addition to cutting costs, BlackBerry has made progress on several key strategic projects, even hardware. The quarter smartphone sales reached 1.6 million, more than 300,000 more than the previous quarter.

Services are also a shiny business, accounting for more than half of the company's revenue. Services and software are areas where BlackBerry needs constant attention. A very exciting development is that BlackBerry and Amazon to establish a partnership. Starting this fall, Blackberry will work with Amazon to develop a BlackBerry 10.3 mobile app that will add more than 240,000 Android apps to the platform. Amazon's Appstore will be pre-installed on the BlackBerry 10.3 system.

BlackBerry also launched mobile payment system BBM Money in Indonesia. Blackberry vigorously promote in emerging markets for important development opportunities. In addition, BlackBerry successfully released the Z3 device in Indonesia in the last quarter and will launch the device in eight other countries.

Financial status

Last quarter, BlackBerry financial situation improved, with important safety margin. The company's cash balance increased by 429 million U.S. dollars to 3.1 billion U.S. dollars. However, it is noteworthy that most of the growth came from non-operational factors, of which the tax rebate was 397 million U.S. dollars and the real estate sales were 287 million U.S. dollars. The core business actually reduced $ 255 million in cash.

Even so, management does not expect to lose too much cash this year as the sharp decline in cash for BlackBerry fell sharply from the previous quarter. Chief financial officer James Yersh said the cash balance is not expected to fall below $ 2.5 billion and the financial position remains stable. (Wood Xiulin)