Shark Tank's Mr. Wonderful says BlackBerry's new phones are not getting any traction

Shark Tank's Mr. Wonderful says BlackBerry's new phones are not getting any traction
The last time we wrote about Shark Tank's Kevin O' Leary, it was over two years ago. At that time, O'Leary made news by switching from his Apple iPhone to the BlackBerry Z10. The billionaire, known for the royalty deals he offers entrepreneurs on ABC's hit show, runs a family of funds which means that he keeps his analytical eye on BlackBerry. The fact that he is Canadian also might have a bit to do with it.

O'Leary says that "If you can’t garner a 5% market share globally, you probably don’t have a long-term prognosis that’s good, and you’re going to eventually have to sell to somebody else." O'Leary must see a sale in BlackBerry's future since the company was able to garner only a .4% global market share during the first quarter, according to Gartner's latest report. Part of the problem, according to the sarcastically nicknamed Mr. Wonderful, is that the sales reps handling phone buyers for carriers are not familiar with BlackBerry's phones and software.

The billionaire, who sold his software company to Mattel for billions of dollars, says that he doesn't see people using BlackBerry handsets in the U.S. anymore, and mentioned that the BlackBerry Passport and BlackBerry Classic are not getting any traction. This has been backed up by reports from global securities firm Morgan Stanley and Canadian bank RBC.

As far as a sale of the company is concerned, takeover rumors have been swirling around the company once again, with talk that Microsoft is considering a $7 billion bid for BlackBerry. Earlier this year it was Samsung that was the rumored suitor in a $7.5 billion deal that never materialized.

Thanks for the tip!

source: MotleyFool

FEATURED VIDEO

65 Comments

1. Mxyzptlk unregistered

Blackberry has become pretty niche. He's right.

3. Bondurant

Posts: 782; Member since: Jun 04, 2014

Cause they are targeting a niche consumer category.

38. sgodsell

Posts: 7377; Member since: Mar 16, 2013

"If you can’t garner a 5% market share globally, you probably don’t have a long-term prognosis that’s good." I guess the same holds true for Microsoft as well in the mobile space. In the same quarter Microsoft's WP only had 2.5% of the market share globally.

68. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

This is true. But Windows is in a position that no other company is at. They hold some 90% of the desktop market. Blackberry does not have this position. Not only that, they rake in billions in other areas that even just having the platform there is enough. Every day new apps join the store. There is close to 80-100million windows phone users last check. That is no small number. Not as much as its competitor sure, but no small number. By having a unified OS, they have set the stone for future of their division where their development is much easier than having two full blown OS like they did in the past.

7. waddup121 unregistered

He's rite

8. Ashoaib

Posts: 3286; Member since: Nov 15, 2013

selling the company is not a bad option... motorola was sold twice, first to google and then to lenovo... So whats wrong in it? if BB is struggle to launch any meaningful device for consumers then it is better to be sold. I dont want to see BB quiting hardware business and turn to software only because it is of no interest for me to hear that how many governments or how many companies are using BB's solutions... my interest is only into see any meaningful device from BB, so I can buy it as my daily driver... may be microsoft or samsung will release more consumer centric phones after taking over BB

16. meanestgenius

Posts: 22106; Member since: May 28, 2014

How many companies do you honestly think would buy BlackBerry and have them continue to make handsets? Most, ESPECIALLY Microsoft, would buy BlackBerry, raid them for their patents and software and then shut the rest down.

17. Ashoaib

Posts: 3286; Member since: Nov 15, 2013

hmm... thats what I didnt thought about... microsoft is a patent hungry bi*** ... In this case the future of BB devices is not so bright, only software section has a good potential

19. meanestgenius

Posts: 22106; Member since: May 28, 2014

Agreed. Look, I want BlackBerry to excel in handsets and make a good, hard push into the consumer market again. But more than that, I want the company on a whole to thrive. If that means only offering it's handsets to a "niche" group while focusing on enterprise and government and expanding their powerful software, then so be it. As long as they are still around and thriving, and I can get my hands on the latest BlackBerry handset, via online if need be, then it's all good.

18. hound.master

Posts: 1044; Member since: Feb 27, 2015

Exactly zero. So it's better than BB keeps it.

39. sgodsell

Posts: 7377; Member since: Mar 16, 2013

With that analogy, then Microsoft should sell as well since they only have 2.5% of the global market share. Cleary you don't know that Blackberry is still making money off of other patents and technologies. Kind of like what Microsoft is doing. Microsoft makes more money from Android then it does from it's own mobile OS.

42. meanestgenius

Posts: 22106; Member since: May 28, 2014

You're a complete !Diot if you think that I, of all people, are unaware of BlackBerry making money on its patents and technologies.

53. tom.howard1978

Posts: 107; Member since: Feb 26, 2015

That would be the best thing they could do

2. hafini_27

Posts: 950; Member since: Oct 31, 2013

Sad that this is certainly true. At least for normal consumers.

4. hound.master

Posts: 1044; Member since: Feb 27, 2015

Did he find it out all by him self!!! We all know that BlackBerry it's not doing well in mobile business. It's probably because of poor marketing BB you never even see a BB phone when you looking for phone how it suppose to sell well in my country i never even see BB phone like at all.

5. My1cent

Posts: 370; Member since: Jan 30, 2014

Of course not, it's not Goodyear dude! LOL

6. meanestgenius

Posts: 22106; Member since: May 28, 2014

Seriously, is this news? Is this a "shocker"? BlackBerry isn't targeting the consumer market anymore, and they're definitely not focused on handsets. They're focusing on the "niche" enterprise market, governments and regulated industries. They don't even market in the consumer space. (They don't really market at all. This is a continuous sore spot for BlackBerry). BlackBerry is focusing on what they're strongest at.

9. Mxyzptlk unregistered

They may not be targeting it as much as they did before when they actually had market share. It's ludicrous to think they aren't targeting it in some way.

13. meanestgenius

Posts: 22106; Member since: May 28, 2014

BlackBerry is not targeting consumers anymore. Do your due diligence and look it up if you don't believe me. Even what little advertising that they do is focused on enterprise, governments, regulated industries and "the young start up". Chen has even said so himself. Sure, they make their handsets available for all to purchase, but the consumer market is not what BlackBerry is currently targeting.

24. Virage

Posts: 88; Member since: May 25, 2015

Blackberry has and will become fully a cooperate target niche product. NOT a consumer product and they have chosen that route. For better and worse. Using a Blackberry 9720 and LG G3,had a 9900 and 9360, this will be my last Blackberry. LOL. I feel like add a Apple to my diet lol, a Iphone 6S,maybe a Sammy S6 (blue).

26. meanestgenius

Posts: 22106; Member since: May 28, 2014

I agree with and am aware of what you said in your first two sentences. It's what I've been saying all along.

62. Mxyzptlk unregistered

Really because it seems like Chen was desperate to pay people to give up their iPhone for a blackberry. So yes I do my due diligence.

65. meanestgenius

Posts: 22106; Member since: May 28, 2014

It seems Apple is desperate to get the messaging bug fixed, which has now spread to iOS apps like twitter and Snapchat. And reading old articles on PA is not due diligence.

75. Mxyzptlk unregistered

HTC needs to fix the problems with their camera. See I can use straw man to.

78. meanestgenius

Posts: 22106; Member since: May 28, 2014

Really? Like your comment on post #62?

79. Mxyzptlk unregistered

No like your comment.

83. meanestgenius

Posts: 22106; Member since: May 28, 2014

Another "no you" comment. And you accuse others of this? The Hypocrisy continues....

10. tom.howard1978

Posts: 107; Member since: Feb 26, 2015

That's because BlackBerry is a sinking ship and smart people moved onto much better platforms

51. Crispin_Gatieza

Posts: 3137; Member since: Jan 23, 2014

Then you MUST have a BlackBerry because you're as stupid as they come.

54. tom.howard1978

Posts: 107; Member since: Feb 26, 2015

Nope I am smart and have a real Android phone. Like most users people left BlackBerry a long time ago

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.