[Corbu]

BlackBerry?s Passport launch a test of restructuring efforts - The Globe and Mail

This summer, BlackBerry Ltd. CEO John Chen made some big promises to his customers, employees and investors. Chief among those promises was an end to the company�s painful restructuring process and an eventual return to profitability. Now, the time has come to deliver.

One of the most important seasons in BlackBerry�s corporate history begins this week, as the company unveils a brand new smartphone, announces its latest quarterly earnings and sets the tone for a final quarter of the year in which it will launch a number of vital services and products.

BlackBerry on Wednesday will unveil its newest smartphone, the Passport. The widescreen, premium device is aimed at luring BlackBerry�s core demographic � enterprise customers � away from rivals Apple and Samsung.

�This week is about as big as it gets for the company,� said independent technology analyst Carmi Levy. �[The] Passport launch is much more than a simple hardware release � it is being looked at as a lens into the health of the company and a sign that most of the negative stuff the company has garnered over the last few years is behind it.�

In an interview with the Wall Street Journal, Mr. Chen indicated the Passport will go on sale in the United States at a no-contract price of $599 (U.S.). He added that the phone should cost around $700, but that the company is trying to drum up interest by lowering the price.

The $599 price tag compares favourably to both the iPhone 6 and Samsung�s Galaxy S5 � the two current flagship devices in the Apple and Google Android markets. Both those phones come at a no-contract price of between $600 and $650. The larger, more premium iPhone 6 Plus retails at a no-contract price of $750.

But price tags may not be enough to drive sales. The BlackBerry Passport launch comes as Apple announced on Monday it sold 10 million new iPhones in just the first three days since the two new smartphones went on sale � a new company record.

�Expectations [for the Passport] are much more modest,� said Mr. Levy. �What matters is how well the Passport is received by BlackBerry�s core enterprise customers.�

Since Mr. Chen took command of the company in November of last year, BlackBerry�s focus has been squarely on services and software, rather than its iconic smartphones, which have been waning in popularity for several years. This week�s launch of the Passport (and a likely sneak peak at the BlackBerry Classic, due out later this year), represents a temporary break with that strategy, as the company tries to reinvigorate its loyal customer base with new hardware.

On Friday, two days after its smartphone unveiling event, BlackBerry is expected to announce its 2015 fiscal second-quarter results. Analysts expect sales of between $900-million and $940-million, on average, and a loss per share of about $0.16. The results mark the first major financial event since Mr. Chen sent a memo to employees in early August claiming that the company�s long and painful restructuring process is finally over. Mr. Chen also promised that, barring unexpected market downturns, BlackBerry will begin hiring employees again in modest numbers (after years of massive layoffs), with a goal to return to profitability next year.

This week�s quarterly results will go a long way toward showing how realistic that goal is. But it will also set the stage for the coming months, during which BlackBerry is expected to release a number of important new products. Most significant among them is the new BlackBerry Enterprise Server 12 software, which lets corporate IT departments manage their employees� smartphones � even if those smartphones aren�t BlackBerrys.

More than any handset, it is the success or failure of products such as BES 12 that will determine whether BlackBerry is able to reinvent itself as a provider of services, rather than a hardware-maker.

�BES12 may be one of the most important product launches in BlackBerry�s recent history,� noted RBC Dominion Securities analyst Mark Sue.

[Corbu]

When is the last time we saw a BlackBerry write-up in something like CBS MoneyWatch?

The Passport launch is certainly generating some media exposure.

BlackBerry courts business users again - CBS News

BlackBerry (BBRY) is no longer trying to out-iPhone the iPhone. The device maker found it spectacularly difficult to compete against the likes of Apple (AAPL) and Samsung, and has abandoned its strategy to grab more of the consumer market.

Now, BlackBerry is going after the business users who were once its most enthusiastic and loyal customers. It's betting that an unusual device called the Passport can help it regain traction in the corporate world.

The Passport will go on sale Wednesday for $599. That's the price without subsidies, and users may get the phone at a cheaper price if they agree to a multiyear contract from mobile carriers.

The new phone certainly stands out in the crowd, mostly because of its 4.5-inch square screen and physical keyboard. The Passport is shorter and much wider than the new iPhone 6 (one Twitter user noted that it's a bit broader than a Kellogg's Pop-Tart).

The expansive screen size can display 60 characters of text on each line, which will make it easier to read documents and Excel charts. The downside is that the Passport won't easily fit into a pocket. The company says it can run for a whopping 36 hours on a single charge.

BlackBerry hopes the Passport's size will be an advantage, particularly for people in the medical field or other sectors where they need to easily navigate text-heavy screens. Passport is trying to ride that tricky territory between smartphones and tablets, and it might directly compete with Samsung's Galaxy Note 4, expected out in October, or Apple's larger iPhone 6 Plus.

Leading BlackBerry's new marketing focus is CEO John Chen, who took over the struggling company less than a year ago. After watching a flashy line of BlackBerry 10 models fail to take hold with consumers last year, Chen turned his attention back to the business market, saying users will want more security and identity protection in this era of sophisticated hacking attempts on corporate networks.

However, the question that continues to haunt Chen is: Are his efforts simply too late in a mobile world dominated by Google's (GOOG) Android and Apple's iOS?

The Passport is a "good phone, but it will never really hit the mainstream as a premium offering," Daniel Pang, a researcher with IDC Malaysia, told The Wall Street Journal. "Most consumers are too invested in other platforms."

Chen is betting that plenty of business users aren't yet so heavily invested.

[Corbu]

Even in the Daily Mail...
BlackBerry's Passport goes on sale on Wednesday for $599 | Daily Mail Online

[_dimi_]

Thanks a lot Morgan!!!

[BBNation]

So Cormark down grades few days before launch and ER. They did not want to see ER, performance, launch, product. Seems coordinated attack, millions shorts shares ready to dump and then down grade. Avg retail longs get screwed.

[FijiBB]

-0.30 in half an hour... wow

[morganplus8]

How likely is this given BlackBerry's history of trying to be a good partner to all?

I don't recall the article but Dan Dodge was interviewed this summer and he recounted a conversation he had with a potential Project Ion customer and the question of data ownership came up. Dodge said he told the potential customer that they owned the data, and that Dodge was the first cloud company to say that. The article was very brief and didn't give the context of what kind of data was being discussed. But it raises the question, how much of the pie is BlackBerry trying to carve out and will they be justly rewarded for being an instrumental player (assuming they are one).

Hi BanffMoose !!

They need to partner up with Catamaran - CTRX for PBM security, all major insurance companies and of course hospitals. The first leg of this business model is there for the taking and the rest will fall in line, especially the insurance side of the business. The end-users own the data and BlackBerry would contain/secure the data, make it available globally and consolidate all of the data for controlled, universal access. BlackBerry might need to partner with SAP, or Oracle etc., to enter into all of those spaces but they would/could start with Catarmaran for the largest part of the NA market in PBM. Have a look at CTRX and their revenue/transactions for 2013/2014.

[JonCBK]

Anyone else getting really solid battery life since the latest 10.2 updates? These were two light days (especially Sunday) but 50 hours later and my Q10 is going strong.



Posted via CB10

[sidhuk]

This.
http://utbblogs.com/under-the-bridge...er-the-bridge/

BlackBerry Z30. The best smart phone.

[jake simmons3]

So do we have any news on if we can stream the event tomorrow??

Posted via CB10

[randall2580]

This is not a bad article and they are talking about BlackBerry on Bloomberg now, fairly good discussion will post if they put it on the site.

I put the link here there is a good picture of the Passport with an XRay on it...

BlackBerry?s Square Passport Phone Targets Business Users - Bloomberg

[DREXcb]

I think Chen needs to set the expectations for the passport volume. He has financial models set on certain minimum quantities that are well below the ten million iPhone sales in the first weekend. We know that but if nothing is set by BlackBerry then the analysts will declare anything short of a million a failure. If we don?t tell the story someone else will and it is guaranteed to be wrong.

Posted via CB10

[Corbu]

[BBNation]

So what's left to announce tomorrow. Passport price, specs, price, info, etc. is all out there. Even Porche launched separately. Blend info is already out.

[Corbu]

BlackBerry FYQ2 On Tap: Focus Turns to Passport, Platform, BES12 - Tech Trader Daily - Barrons.com

With BlackBerry (BBRY) heading toward the debut tomorrow of its “Passport” handheld, and its fiscal Q2 earnings report on September 26th, for the three months ending in August, the Street is revving up its model for the company.

Consensus is for $947 million and a 16-cent loss in the quarter.

Amitabh Passi of UBS reiterates a Neutral rating on the stock, and a $9 price target, writing that he’s modeling $943 million in revenue and a 13-cent loss per share in net income, a 4.5% decline in revenue from the prior quarter. That is below the consensus, obviously, on the top line, a little less bad on the bottom line.

Writes Passi, “With most of the opex cuts and balance sheet rationalization behind, BBRYs turnaround depends on platform acceptance and strong execution. We remain on the side-lines for now.”

Passi writes of the Passport, “A high-end smartphone with an expected retail price of $599. Initial feedback on some of the user forums has been mixed though the device ranked favourably in a recent poll conducted by The Verge.”

Passi reviews developments in the quarter:

BBRY was busy in the quarter, making two tuck-in acquisitions, Movirtu – a virtual SIM solution provider, and Secursmart – a high-security encryption company to strengthen its enterprise mobile management (EMM) capabilities. BBRY is also striving to monetize BBM with mobile payments in Indonesia, with the goal of growing BBM into a $100m business by FY16. In addition, the company hired two industry veterans, Dr. Sandeep Chennakeshu to head the newly created Technology Solution business, and Marty Beard as COO. Promotional activity remains high as BBRY aims to transition BES5 customers to BES10 and is collaborating with Verizon to offer $150 billing credits to enterprises for each device that moves to the newer BlackBerry 10 platform and BES10.

Mark Sue of RBC Capital Markets reiterates a Sector Perform rating on the stock, and a $12 price target, forecasting $908 million in revenue and a 16-cent loss.

Sue thinks that “Restructuring is mostly behind us and BlackBerry’s inching closer to cash flow breakeven, becoming less about smartphones and more about software.”

Specifically on software, Sue thinks that more than the Passport, the new version of the company’s enterprise management software, “BES12,” is the thing to watch at tomorrow’s events:

We expect a launch of the Passport smartphone (square QWERTY) and showcase the Classic (traditional QWERTY, launch: Nov). BlackBerry may provide details on upcoming software releases such as BBM Meetings, BES12 (release: Nov), QNX cloud (release: Dec). BES12 may be one of the most important product launches in BlackBerry’s recent history; it allows enterprises to securely manage both BlackBerry and iPhone/Android, a competitive advantage and a catalyst to re-engage enterprises. 30k enterprises have deployed BES10 (vs. 80k enterprise customers). MobileIron, Airwatch, Good remain competitors not eager to cede share.

BlackBerry stock is down 41 cents, or 3.8%, at $10.52.

Someone should remind our friend, Mr. Passi that it is "Secusmart" and not "Secursmart".

[chrysaurora]

Why is BBRY tanking today?
Is it repeat of buy the rumor, sell the news or is there some insider info that we are not aware of?

[ad19]

So do we have any news on if we can stream the event tomorrow??

Posted via CB10

Would like to know as well.

[Tinomane]

It's the same bs that happens before every er. If we pop 15% after the launch and er release there will be lots of excitement but we'll still only be in the high 11s. Basically what we were at a week or two ago. Its so annoying.

Posted via CB10

[anon(5906760)]

It's the same bs that happens before every er. If we pop 15% after the launch and er release there will be lots of excitement but we'll still only be in the high 11s. Basically what we were at a week or two ago. Its so annoying.

Posted via CB10

Yeah, now I remember. Buy now and sell in a week lol.

I bought another 350 BB shares when it was at 11.77 expecting it to hover but it didn't..

Hopefully we can get it back to 13 by the end of the week.

Posted via CB10

[bspence87]

Cormark, a known BlackBerry basher, released a negative article on BlackBerry. People are shocked and running for the doors.

...this is as much as I can gather.

[BBNation]

Bought tons this morning. I think typical bear raid. Retail shorts should cover before ER and based on Chen's confidence and movements ER should be good. I have feeling that it will take 52 week high this time.

[jake simmons3]

The shorts just won't give up on this one, I really hope they burn this week.

Posted via CB10

[georg4BB]

Just a wild guess: There were lots of good new and articles recently published - very suspicious. Now the SP tanks on (almost) no news. Looks a little bit like a pump and dump manipulation, imho. Once the weak hands are shaken out the SP should go up again.
Whatever. The coming news will move the SP anyway.

[randall2580]

Here is the BlackBerry discussion from Bloomberg earlier...

BlackBerry Passport: Can It Lead to a Comeback?: Video - Bloomberg

[bspence87]

Turned a corner. Big rally into EOD?