Good news for BlackBerry Limited’s (BBRY - Free Report) smartphone lovers! The beleaguered Canadian smartphone manufacturer has recently struck a licensing deal with Amazon.com Inc. (AMZN - Free Report) to bring the Amazon Appstore to its customers with the BlackBerry 10.3 operating system, scheduled to be launched this fall. Following this development, the company’s shares jumped 3.0% yesterday.
This deal will open roads for BlackBerry 10 device users to access more than 240,000 Android applications from the Amazon Appstore, including popular ones like Groupon, Netflix, Minecraft, Pinterest and Candy Crush Saga.
BlackBerry and Amazon will be jointly working with the former’s application developer community to help it transfer its apps to the Amazon Appstore. Amazon's promotional tools will ensure that BlackBerry's apps get maximum visibility on the app store.
Once a market leader in the smartphone industry, BlackBerry has seen its handset business suffer lately owing to stiff competition from Apple Inc.’s (AAPL - Free Report) iPhone and devices powered by Google Inc.’s (GOOG - Free Report) Android platform.
Of late, BlackBerry has been focusing more on its enterprise business. In order to offset rising losses in its smartphone business, BlackBerry recently decided to enter the lucrative machine-to-machine (M2M) wireless communications market. Management has undertaken “Project Ion” to help business enterprises provide a seamless connection between people, devices and machines for greater value addition.
Last week, the company struck a three-year deal with mobile payment company, EnStream LP, to deliver an advanced secure platform for monetary transactions that take place between banks and customers.
We believe such value-added services for its customers will not only enable the company to improve its top line but will also help minimize losses in the long term.
BlackBerry currently has a Zacks Rank #2 (Buy).