Credit Suisse: It’s Time for BlackBerry to Break Up

Credit Suisse is the latest financial firm to suggest BlackBerry would benefit from breaking into multiple companies.

Issuing a report following BlackBerry’s recent quarterly earnings report, Credit Suisse analysts Kulbinder Garcha and Achal Sultania argued that “it would be best for the company to break up.”

“BlackBerry reported results that were considerably lower than expected on the top line,” the report reads. “We continue to have reservations on its ability to ramp up software and operate more competitively. We expect the company to continue to burn cash.”

BlackBerry’s revenue breakdown for the quarter was approximately 42% for hardware, 47% for services and 10% for software. BlackBerry says it plans to focus more on software, where margins are higher.

New data shows that, even in its home country, BlackBerry is now losing even its most loyal consumers. For the first time, according to ComScore, BlackBerry’s marketshare for smartphones has slipped to single digits, now at 8.9%. Apple and Samsung are eating up the Waterloo-based company’s share: Apple reigns king with a 38%, followed by Samsung with 32%. In 2011, iOS owned 23%, Android 26%, and BlackBerry 41%.

BlackBerry sold 1.6 million phones during the quarter.