An article on Seeking Alpha talked about how International Business Machines Corp. (NYSE:IBM)’s decline can be beneficial for BlackBerry Ltd (NASDAQ:BBRY). IBM has tumbled massively. The company has reported 99% in income on Year over year basis for the third quarter. The company’s revenue came down by 4%. Core business of International Business Machines Corp. (NYSE:IBM) has also got a shock as it declined by 12%. Analysts have labelled International Business Machines Corp. (NYSE:IBM) as a company that is going through immense strategic issues and organizational decline. International Business Machines Corp. (NYSE:IBM) is trying things at multifarious levels, but nothing seems to be working till now.
BlackBerry Ltd (NASDAQ:BBRY) got a bad news when Apple and IBM made an agreement to sell iPads in the Enterprise. These iPads will be loaded with International Business Machines Corp. (NYSE:IBM) software; giving a blow to Blackberry’s enterprise and consumer base. BlackBerry Ltd (NASDAQ:BBRY)’s stock came down by 12% the day this partnership was accounted. The source claims that International Business Machines Corp. (NYSE:IBM) being on the decline, BlackBerry Ltd (NASDAQ:BBRY) will cease the opportunity to mark a new beginning in the corporate world.
Software and services counted around 51% in quarterly report for 2014. The article claimed that software and services revenue will go up to 61% in 2015. BlackBerry Ltd (NASDAQ:BBRY) is aligning itself as a services company. The first reason behind the edge for Blackberry in IBM’s decline is that fact that International Business Machines Corp. (NYSE:IBM)’s customer base is getting thin day by day. Its MobileFirst partnership with Apple has a very thin chance of success and BlackBerry Ltd (NASDAQ:BBRY) is ready to pounce on the growing opportunity.
The article labeled International Business Machines Corp. (NYSE:IBM) as a ‘complete disappointment’ which is, potentially, a good news for BlackBerry Ltd (NASDAQ:BBRY) as the phone maker itself is not in a very colossal shape. Future can bring a plethora of opportunities for BlackBerry Ltd (NASDAQ:BBRY).
Prem Watsa’s Fairfax Financial Holdings reported owning about 46.65 million shares in BlackBerry Ltd (NASDAQ:BBRY). Warren Buffett’s Berkshire Hathaway hold around 70 million International Business Machines Corp. (NYSE:IBM) shares.
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