BlackBerry has published an open letter in major publications around the world, in an attempt to "set the record straight", and reassure customers that it is still a smartphone company that can be counted on.
In the letter, BlackBerry says it has "substantial cash on hand and a balance sheet that is debt-free. We are restructuring with a goal to cut our expenses by 50% in order to run a very efficient, customer-oriented organisation."
The letter also highlights BlackBerry's revamped device portfolio, advanced security and enterprise mobility management. It makes reference to the delayed rollout of BlackBerry Messenger service (BBM) to Android and iPhone, saying there are already around six million customers pre-registered to be notified of rollout. BlackBerry announced in September that BBM will be expanding to other platforms, but deployment was halted after an unreleased, older version of the BBM for Android app was posted on numerous file-sharing sites.
The letter concludes with: "You trust your BlackBerry to deliver your most important messages, so trust us when we deliver one of our own: You can continue to count on us."
Inevitable move?
BlackBerry's attempt to reassure customers could possibly have the opposite effect of highlighting the ailing company's problems, says Ovum analyst, Richard Hurst.
Hurst says BlackBerry is trying to pre-empt market sentiment and could have just ended up emphasising the challenges more than it should. "Whether this [letter] achieves what they hoped for, remains to be seen."
He says BlackBerry should perhaps have focused on a sustained marketing campaign that highlights its unique features, rather than publishing a letter. He also notes the company's delay in rolling out BBM to Android and iPhone was perhaps not the best move. "By expanding to other platforms, they will erode their once unique position. We don't know if there might be other issues on hand for them [regarding the delay in BBM rollout], but there is that sort of hanging question mark."
IDC analyst Spiwe Chireka says while she can't predict what the reaction to BlackBerry's letter will be, she thinks it was a necessary thing to do. "There hasn't been a lot of positive media around BlackBerry in the past few months, so perhaps it is expected that they would want to contain the rumours and set the record straight."
Tech analyst Liron Segev says it was about time BlackBerry broke its vow of silence. "If there is no communication, it just fuels the rumours. I think they could even have taken it further by mentioning the various government entities and companies that are still staying with BlackBerry."
Segev says there will always be consumers who dislike BlackBerry and think the company is doomed to fail. "All the haters are still going to hate. But there are people out there who will read the letter and feel they are now able to make an informed choice [when choosing a smartphone]."
The embattled company has had a harrowing year so far. Its shares have gone from being worth almost $150 a share to less than $9. Last month, the company announced it has agreed to go private in a $4.7 billion deal led by its biggest shareholder, Fairfax Financial Holdings. It also announced plans to cut 4 500 jobs, more than a third of its workforce.
Last week, a securities filing suggested BlackBerry co-founders Mike Lazaridis and Douglas Fregin are considering a bid to buy the struggling company, raising the prospect of an alternative to the Fairfax offer. Unnamed sources have claimed BlackBerry is in talks with Cisco Systems, Google and Germany's SAP, among others, about selling part of, or the entire business.
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