Canadian Government Keeps Close Eye on BlackBerry

Authorities Look Close on BlackBerry's Review of Strategic Options

by Anton Shilov
08/21/2013 | 09:28 PM

BlackBerry may play an insignificant role on the global market of smartphones, but the company continues to be a significant employer in Canada, which is why the country’s government is watching the situation with the company very closely. At present BlackBerry is exploring its strategic options and may even sell the company to a foreign investor, which will mean a massive reorganization.

 

“I know that they are facing their challenges and they are adjusting their firm internally in the way that best suits their interests. And all I can say is, we wish them well, and we are keeping a close eye on the situation,” said James Moore, minister of industry in Canada, in an interview with Reuters news-agency.

BlackBerry was one of the primary smartphone vendors in early- and mid-2000s, but after Apple iPhone and Google Android emerged, it started to quickly lose market share. Currently, the company is out of Top 5 smartphone vendors in the world and its latest handsets powered by BlackBerry 10 operating system cannot compete against Apple’s iOS or Google Android in terms of market share.

BlackBerry, the former Research in Motion company, employs around 12.7 thousand of people, the majority of which are in Canada. Unfortunately, the company is hemorrhaging money, which is alarming since its products do not gain market share. As a result, the firm is exploring strategic options, which may include selling the company to a foreign investor, reorganization of BlackBerry, changing business model and so on.

“We want them to do well, keep employing Canadians, keeping putting out innovative technologies and platforms, and we are paying close attention,” said Mr. Moore.