BlackBerry might be the new Apple.
Dominic J. Auld, partner at Labaton Sucharow LLP, a New York-based securities litigation law firm, in an interview, drew the comparison as a reason for optimism for the fallen smartphone company.
“I believe they still hold 2% (of 3%) of the world cellphone market,” Mr. Auld said.
Fairfax Financial Holdings Ltd. “believes (that market share) is enough to matter,” he said.
Fairfax entered into an agreement with BlackBerry to acquire the company for $4.7 billion in cash, subject to due diligence, according to a Sept. 23 announcement by BlackBerry, based in Waterloo, Ontario.
Toronto-based Fairfax “has approached pension systems (among other investors) in Canada and the U.S. to join in their consortium” to bid for BlackBerry, Mr. Auld said.
“Apple for years was not the $500-a-share company it is now,” Mr. Auld said. “But they did OK with 10% (or so) of the computer market” for years. “If you have a dedicated customer base and you can hold onto 5% or 10% of that huge market ... then that's not necessarily a non-viable business.”
“And BlackBerry sells a couple of (useful) things,” Mr. Auld continued. One thing, “they sell security. ... The other thing (is) about that 2.9% (market share) number. I'd like to see a social demographic breakdown of it. My guess is that 2.9% of the world's smartphone market is nothing but high-paid business executives and government employees. That's a pretty serious chunk of the market in terms of its buying power and attractiveness to advertisers.”
As for himself, Mr. Auld, a Canadian native, said, “I'm still carrying one. I love my BlackBerry.”
— BARRY B. BURR
