Chris Lau
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Chris Lau in Value Stocks,

BlackBerry Samsung S2

Samsung (SSNLF) chose BlackBerry (BBRY) to supply the security card and encryption and certification software for the S2 tablet. This reminds investors that the beleaguered smartphone maker and former tablet company is “all in” with software and security. Anything beyond security solutions is secondary for BlackBerry.

Markets will still look at sales of the DTEK50 smartphone in the quarter. The PRIV, now nearly a year old, will not contribute much to revenue. At its current price, BlackBerry is not trying to compete with industry leaders like Apple (AAPL) or Samsung for market share. This may hurt the stock price as markets truly want the company to win market share.

Given BlackBerry’s cash levels and positioning of the mobile devices on the market, the company simply has no resources to win market share. Its best bet involves staying on course with building secure, software solutions.

BlackBerry’s big buy of Good Technology will further entrench the company’s moat in secure enterprise solutions. Good’s suite of apps for businesses complement BlackBerry’s Docs2Go, WatchDox, and Hub+ for Android.

Next up

When BlackBerry reports next quarter, look closely at1. DTEK50 sales
2. BES 12 + GOOD integration
3. Uptake of Good Apps in the enterprise

4. Successor to PRIV device

5. BES 12 (“MDM”) subscription sales for Gold, Silver licenses