BlackBerry shares have been sent tumbling once again after a deal cut between Apple and IBM dented its recent revival under CEO John Chen.
Shares in the company, which had risen by some 50 per cent over the current year, dropped by 9.4 per cent to $10.24 [£5.98] on the Nasdaq and 9.3 per cent to CAD$11.03 [£5.99] on the Toronto Stock Exchange with analysts worried at the effect the tie up will have on the Canadian firm.
“It is not a crushing blow at this early stage, but it is a negative for BlackBerry,” IDC analyst told Reuters. “There can be little question that it is unwelcome, if not entirely unexpected news.”
IBM and Apple announced the partnership on Tuesday that means a range of business apps will be specifically developed for the iPhone and iPad to give both firms a boost in the enterprise sector.
Although even as it’s share price dropped, the BlackBerry led by Chen was unmoved at the threat posed by the partnership.
“The news that Apple is partnering with IBM to expand into the enterprise mobility market only underscores the ongoing need for secure end-to-end enterprise mobility solutions like those BlackBerry has delivered for years,” read a short statement from the firm.
Another analyst, Brian Colello from Morningstar, added that even if the “security mousetrap” developed by IBM and Apple isn’t as good as BlackBerry and others, they “will have to overcome the extremely high hurdle of displacing IBM’s mobile device software preloaded on iPhones and iPads.”
BlackBerry’s Enterprise Service 10 is highly regarded by businesses and IT professionals and has scored highly on a number of reports when it comes to cost effectiveness. Whether being value for money is enough to challenge the new Apple-IBM tie up is another question entirely.