What’s going to Happen with Blackberry?
by Matthew Pellicer on September 25, 2013 - 11:15am
As time goes on, Blackberry isn’t doing so well. After launching a new line of products, they still can’t seem to manage to gain back the customers the lost to either iOS or Android platforms in a market they used to be dominant in. Blackberry was the company that started the smartphone and they are now not able to compete with all the other companies now competing against them.
Either because most consumers or companies are caught up in their current contracts and even though they might want to change to a new Blackberry device aren’t willing to pay all the fees that go along with them or there is just a plain lack of interest in their products, Blackberry is slowly disappearing. There recently was a bid to take over the company by Fairfax Financial Holdings Ltd. Worth about 4.7 billion dollars. This is a fraction of the cost of what the company was worth in its moment of glory at about 83 billion dollars. As the buyer, Fairfax Financial is getting an incredible reduction even based on the sales that Blackberry made in the past year. They are paying about 0.17 times the year’s sales which is one of the cheapest prices ever recorded.
I believe following companies that have made it this far and that originated in our country is important because it was bringing a lot of money into our economy and keeping it strong. The fall of Blackberry, that started off as Research In Motion, is important for us because it means that less money will be brought in meaning less paid in taxes to the government at the current amount which means that eventually in the long run we could end up paying more out of our salaries and in taxes on goods and services than we currently do. The loss of jobs is also important because this means that everyone who is getting laid off is now searching for jobs and similar jobs in different companies become scarcer and more competitive to obtain. This brings us to a higher unemployment rate which can affect everyone in the country.