BlackBerry Reaches Customer Lows Amid CEO’s Positive Hopes

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BlackBerry has a long way to go to recover consumer confidence, despite bringing in a new CEO to fix the business. BrandIndex consumer perception measurements are reaching all-time lows, suggesting that the smartphone company is still struggling to maintain its share of the smartphone market.

BlackBerry brought in a new BlackBerry chief, John Chen, last November to turn around the business’s fortunes. Since then, BlackBerry sales results have become more positive, but profits are still down. The company’s $23 million profit for the period compares to a loss of $84 million a year earlier.

Chen said the results showed that BlackBerry was on track to achieve profitability, saying: “We have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement. Looking forward, we are focusing on our growth plan to enable our return to profitability.”

But in a market where Android, Apple and Windows Phone platforms dominate, BlackBerry has been losing confidence among consumers. The BrandIndex Recommend score, which tracks if consumers would recommend a brand to a friend, has reached an all-time low in 2014. The peak was in 2008 to 2009, when scores were in the 20-30 range out of a score of -100-100. Now scores are in the negative -5 to 0 range.

BlackBerry’s perception as a brand that offers good value products for their price tag has also eroded over the past few years. BrandIndex Value scores, calculated by asking consumers if they thought Blackberry products offered good value for money, have also tumbled to their lowest point since 2007. Whereas Value ranged from 10-20 out of a -100-100 score range, the metric is currently below the -5 range.

Purchase Consideration scores for BlackBerry, which ask consumers if they would consider buying a BlackBerry next time they are in the market, have not quite reached the all-time low of 4% in November 2013, out of a possible 0%-100%, but remain below pre-2013 levels of 7%-9%, with scores currently in the 4%-5% range.

With a deal with Amazon in the cards to jointly offer Android apps, BlackBerry’s fortunes may be set to turn around this year. The deal will let the smartphone maker offer some 240,000 Android applications from Amazon’s app store on its lineup of BlackBerry 10 devices.

BlackBerry Recommend and Value scores, 2007 to present

BlackBerry Consideration score, 2007 to present
source-http://www.forbes.com/sites/brandindex/2014/06/23/blackberry-reaches-customer-lows-amid-ceos-positive-hopes/
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