Sunday, April 19th2.2°C
25936
24291

Shares of BlackBerry lower after Apple, IBM announce business app partnership

TORONTO - Shares of BlackBerry (TSX:BB) took a beating Wednesday after details emerged on partnership between two of the world's biggest technology companies — Apple and IBM — that will cater to business customers.

On the Toronto Stock Exchange, BlackBerry shares closed down 12 per cent, or a $1.42 at $10.72 on extremely high volume of around eight million shares.

International Business Machines Corp. and Apple Inc. said late Tuesday they plan to launch a partnership this fall that will have IBM creating more business-themed applications that will be pre-loaded on iPhones and iPads.

The strategy would make available more than 100 IBM apps that cater to specific industries, like retail and health care.

The announcement will put Apple and IBM in competition with BlackBerry, which is trying to reaffirm its position catering to government agencies and businesses that require secure mobile communications.

Apple CEO Tim Cook said his company is turning to help from IBM because it doesn't understand the needs of corporate customers as well as it does consumers.

IBM CEO Ginni Rometty said the alliance will help her company by widening the audience for its technological tools, providing bigger returns on the roughly $24 billion that IBM has invested in data analytics.

In an emailed statement, BlackBerry took an optimistic tone on the competition saying it "only underscores the ongoing need for secure end-to-end enterprise mobility solutions like those BlackBerry has delivered for years."

BlackBerry has dedicated more resources to building its relationship with business customers under the leadership of chief executive John Chen, who joined the company last November.

Chen was hired last year to reshape BlackBerry, cut costs and lead an effort to find a better footing in the competitive tech sector. Before he took the job, he helped turn software company Sybase into a profitable operation focused on mobile business technology.

His strategy has set aside the consumer market as a priority, after the BlackBerry 10 line of phones failed to become a sales hit.

As more of BlackBerry's competitors turn their attention to the highly lucrative, and generally loyal, enterprise market, the Canadian company could begin to feel extra pressure.

William Blair analyst Anil Doradla said he believes the Apple and IBM partnership will be a "long-term negative" for BlackBerry.

"In the likely scenario of Apple/IBM doing well in servicing the needs of enterprise customers, we see little reason for enterprises to choose BlackBerry’s platform over Apple's," he wrote in a note.

Follow @dj_friend on Twitter.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15360.55-26.22
S&P CDNX702.85-2.74
DJIA17826.30-279.47
Nasdaq4931.81-75.98
S&P 5002081.18-23.81
CDN Dollar0.8169-0.0001
Gold1204.10+6.10
Oil56.14-0.57
Lumber245.50-9.80
Natural Gas2.641-0.043

 
Okanagan Companies
Pacific Safety0.12+0.00
Knighthawk0.010.00
QHR Technologies Inc1.40-0.01
Cantex0.035+0.005
Anavex Life Sciences0.33+0.02
Metalex Ventures0.075+0.030
Russel Metals27.48-0.23
Copper Mountain Mining1.13+0.01
Colorado Resources0.10-0.00
ReliaBrand Inc0.005+0.001
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation1.80+0.15

 





FEATURED Property
2218779Coral Beach Lakeshore
$1,500,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Calling on your help!

Has the internet flattened prices as predicted? Has the internet created opportunities for your business to find higher priced markets further afield? Is posting prices on your website a good thing o...


Living with Plan B

“It does not do to leave a live dragon out of your calculations, if you live near him.”― J.R.R. Tolkien, The Hobbit Photo: Thinkstock.comHuman beings are optimists by nature. Whether...


Reverse mortgage solution

With the housing and financial markets on solid footing, some retired Canadians may consider cashing in their growing assets to enjoy vacations and major home renovations. Others, on the other hand, a...

_








Member of BC Press Council


25692