Welcome to the CrackBerry Forums Create Your Account or Ask a Question Answers in 5 minutes - no registration required!
Results 1 to 15 of 15
Like Tree8Likes
  • 6 Post By Bob the best 001
  • 1 Post By bigbadben10
  • 1 Post By Bob the best 001
  1. Bob the best 001's Avatar
    CrackBerry User

    Posts
    39 Posts
    Thread AuthorThread Author   #1  

    Default Passport sales

    I see a lot of people saying that the Passport will fail because they won't sell as much as Apple and Samsung. There's a concept that many people needs to understand:
    If a company wants to be profitable, it's not how many cellphones they sell but how many cellphones they sell compared to how many they NEED to sell. So if BlackBerry plans to sell, by example, 3 million Passport devices and they reach that objective, they will be profitable. Of course if they sell less than what expected it's bad and if they sell more it's better. But when people are saying that the Passport will fail because they won't sell as much as iPhone or Samsung products, it's totally false. The perfect example is the SG5. Since the SG5 sales are not what Samsung expected, their mobile division saw a lost of 31% in profits.
    So in conclusion, since we know that the objective of BlackBerry is to sell 10 million devices per year to be profitable, and with 4 devices coming out this year, BlackBerry doesn't need to sell a hundred of millions of Passport like Samsung and Apple needs to do. With 2 or 3 million devices, it can be enough. And with all the innovation that the Passport is bringing, I am pretty shure that it will bring many customers #BacktoBlack.

    Posted via CB10
    Thanked by 2:
    BlackQtCoder (08-16-2014),  BoldMaverick (08-15-2014) 
  2. BoldMaverick's Avatar
    CrackBerry Newbie

    Posts
    1 Posts
    #2  

    Default

    Good point. Sometimes, meeting and exceeding your personal best, the goal you set for yourself, is more important than trying to break the world record.

    Of course, if you happen to break the world record in the process, well, that's not bad either.

    Posted via CB10
    Thanked by:
    Bob the best 001 (08-15-2014) 
  3. Bob the best 001's Avatar
    CrackBerry User

    Posts
    39 Posts
    Thread AuthorThread Author   #3  

    Default

    Quote Originally Posted by BoldMaverick View Post
    Good point. Sometimes, meeting and exceeding your personal best, the goal you set for yourself, is more important than trying to break the world record.

    Of course, if you happen to break the world record in the process, well, that's not bad either.

    Posted via CB10
    Of course if the Passport breaks records who won't be happy? But I can't stand people saying the Passport will fail because they won't sell 20 million devices and more. They don't need to sell that amount of device to be profitable. This is a concept that many android and apple fans don't understand because they are only comparing sales numbers, when the real question is how much you sale compared to how much you need to sell.

    Posted via CB10
  4. bigbadben10's Avatar
    CrackBerry Master

    Posts
    1,114 Posts
    #4  

    Default

    The sales expectations for both Apple and Samsung are so lofty now that you are going to see some very disappointing numbers from these companies in the foreseeable future.

    This has already started to happen. Sure Apple will sell a boat load of 6's but nothing like before. This will cause a lot grief for shareholders and the workforce at these giant vendors as this YOY growth is certainly not sustainable.

    BlackBerry by contrast only needs to sell upwards of 10 million mobiles to be profitable. This goal is very achievable given how BlackBerry has been right sized by TH and now JC.

    Anyway BlackBerry is really a software and services company now. That is where the real profit comes from.

    I relish the next few ER's as a shareholder. Truly exciting times for BlackBerry while we watch the giants in this business struggle with over saturation!!


    Posted with my gorgeous Z30
    Posted from my fabulous BlackBerry Passport
    Thanked by:
    ricocan (08-15-2014) 
    ibpluto likes this.
  5. wincyUt's Avatar
    CrackBerry Genius

    Posts
    1,942 Posts
    #5  

    Default

    Very well said OP.
    My Passport, my gateway to effectiveness and efficiency BEAST----Zzzz30!!
  6. Bob the best 001's Avatar
    CrackBerry User

    Posts
    39 Posts
    Thread AuthorThread Author   #6  

    Default

    We can always hope that one day, BlackBerry could sell as much as Samsung and Apple right now, but comparing 2 smartphones by the number of sales doesn't indicate which smartphone is better. This is a concept that Android and Apple fanboys doesn't seem to understand.

    Posted via CB10
  7. will308's Avatar
    CrackBerry Abuser

    Posts
    230 Posts
    #7  

    Default

    [QUOTE=Bob the best 001;10718340]Of course if the Passport breaks records who won't be happy? But I can't stand people saying the Passport will fail because they won't sell 20 million devices and more. They don't need to sell that amount of device to be profitable. This is a concept that many android and apple fans don't understand because they are only comparing sales numbers, when the real question is how much you sale compared to how much you need to sell.

    Posted via CB10[/QU

    I feel the same ............at the mo its all about selling enough phones to make a profit and then once blackberry is doing that only then can the company feel steady and secure
    TORCH 9800,BOLD 9900,Z10,Q10......Z30.........BLACKBERRY PASSPORT
  8. early2bed's Avatar
    CrackBerry Addict

    Posts
    952 Posts
    #8  

    Default

    Trying to make it in the smartphone platform business with such low sales volume is what is really unsustainable. There is such a thing as economies of scale. The smartphone business is ultra-competitive, is it not? Margins are tight, are they not? The pace of innovation is brutal, is it not? This is a vicious game and all the tech giants are playing but Apple and Samsung are the only ones that are making any money at it, currently. And then there is Blackberry.

    Everything new that will be announced at the iPhone event and Galaxy launch is something that Blackberry will not be able to do simply because they don't have the volume to justify the R&D expense. We're talking billions. Apple invested $700 million on the sapphire display cover alone. That's $70 for every single phone that Blackberry is going to try to sell this year.

    Where is the money going to come from to keep BB10 competitive with iOS and Android or even Windows Phone? It simply won't happen. You can't stay in the smartphone platform race with sales of 10 million phones per year. It's beyond naive to think so.
    Last edited by early2bed; 08-16-2014 at 01:41 AM.
  9. ralphbu's Avatar
    CrackBerry Abuser

    Posts
    228 Posts
    #9  

    Default

    This is being realistic! And I don't mind if Blackberry turns out a kind of "limited edition" sale. The brand creates a class of its own.
  10. will308's Avatar
    CrackBerry Abuser

    Posts
    230 Posts
    #10  

    Default

    Quote Originally Posted by early2bed View Post
    Trying to make it in the smartphone platform business with such low sales volume is what is really unsustainable. There is such a thing as economies of scale. The smartphone business is ultra-competitive, is it not? Margins are tight, are they not? The pace of innovation is brutal, is it not? This is a vicious game and all the tech giants are playing but Apple and Samsung are the only ones that are making any money at it, currently. And then there is Blackberry.

    Everything new that will be announced at the iPhone event and Galaxy launch is something that Blackberry will not be able to do simply because they don't have the volume to justify the R&D expense. We're talking billions. Apple invested $700 million on the sapphire display cover alone. That's $70 for every single phone that Blackberry is going to try to sell this year.

    Where is the money going to come from to keep BB10 competitive with iOS and Android or even Windows Phone? It simply won't happen. You can't stay in the smartphone platform race with sales of 10 million phones per year. It's beyond naive to think so.
    while this may be true and apple send millions on displays if im honest I don't really care ,it dosnt make me want to and buy one.as long as blackberry make money to keep them going then I think all will be ok and anyway I like not following all the sheep
    TORCH 9800,BOLD 9900,Z10,Q10......Z30.........BLACKBERRY PASSPORT
  11. serbanescu's Avatar
    CrackBerry Addict

    Posts
    967 Posts
    #11  

    Default

    2.5 - 3 million devices on what timeframe? It's not the same thing to sell them in a quarter, in a year or during the entire product lifetime.

    Chen said they need to sell at least 10 million devices per year in order to be profitable. At the moment, BlackBerry's current product line-up is near the end of its life (Z3 being the exception, but not doing tremendously well), so they need to sell at least 3 million Passports per year to stay afloat.

    I believe they have a chance to do it, but things are not that easy as may seem - after all, as far as I know, they didn't sold 10 million BB10 devices in the 1.5 years since launch.

    Of course, I want them to succeed because I love BB10.
  12. wilkto's Avatar
    CrackBerry Abuser

    Posts
    150 Posts
    #12  

    Default

    Unless the price is ridiculous, which they sometimes can be in South Africa, then I'm getting one.

    Posted via zedten
  13. Bob the best 001's Avatar
    CrackBerry User

    Posts
    39 Posts
    Thread AuthorThread Author   #13  

    Default

    Quote Originally Posted by early2bed View Post
    Trying to make it in the smartphone platform business with such low sales volume is what is really unsustainable. There is such a thing as economies of scale. The smartphone business is ultra-competitive, is it not? Margins are tight, are they not? The pace of innovation is brutal, is it not? This is a vicious game and all the tech giants are playing but Apple and Samsung are the only ones that are making any money at it, currently. And then there is Blackberry.

    Everything new that will be announced at the iPhone event and Galaxy launch is something that Blackberry will not be able to do simply because they don't have the volume to justify the R&D expense. We're talking billions. Apple invested $700 million on the sapphire display cover alone. That's $70 for every single phone that Blackberry is going to try to sell this year. Th

    Where is the money going to come from to keep BB10 competitive with iOS and Android or even Windows Phone? It simply won't happen. You can't stay in the smartphone platform race with sales of 10 million phones per year. It's beyond naive to think so.
    Selling 10 million devices to be profitable is realistic. Why? Because now, BlackBerry is not only counting on his smartphone sales to be profitable. BlackBerry is smart now. They are not trying to hit a home run when they know that the smartphone industry is competitive.

    Posted via CB10
    spikesolie likes this.
  14. early2bed's Avatar
    CrackBerry Addict

    Posts
    952 Posts
    #14  

    Default Passport sales

    Quote Originally Posted by Bob the best 001 View Post
    Selling 10 million devices to be profitable is realistic. Why? Because now, BlackBerry is not only counting on his smartphone sales to be profitable. BlackBerry is smart now. They are not trying to hit a home run when they know that the smartphone industry is competitive.
    I agree that Blackberry is setting the bar low for the Passport by putting it out in a low-risk low-reward manner. What does that mean?
    1. Slow rollout - Initial volumes will be low. Initial carriers will be limited. Blackberry is taking the inventory risk on this device and nobody knows if it will catch on so it will probably be less of a market presence than the Z3.
    2. Little or no consumer marketing - No big ad campaigns. Utilizing social media for free advertising. All these twitter reviews, etc. are the actual marketing campaign for the device.
    3. Limited features - No expensive ecosystem investments like cloud services, media, desktop integration, paid app develpment, etc.
    4. Realtively high price - The way to ensure that you don't lose money on a device is to price it so that you can get your core enterprise customers and not bother with more price-sensitive market. They aren't going to make it up in volume.
  15. PFman's Avatar
    CrackBerry Abuser

    Posts
    233 Posts
    Global Posts
    258 Global Posts
    #15  

    Default

    Chen said he thought they could turn a profit on sales of 10m units a year..... I can't see how that works out. Take the head count, and the wages, the rents, the health care and the pension commitments and all the other overheads. Then look at the margin on the range, z3 makes money for Foxconn with a royalty to BB, the z10 is end of life and the z30 and q10 is approaching it.

    They haven't sold 2.5m in a quarter in 2 years. They make no money from Amazon app sales, and no recurring BIS income from BB10 sales.

    It just doesn't add up.

Similar Threads

  1. All Touch Z20 coming with Passport and Classic?
    By pick1eberry in forum Rumored Devices
    Replies: 45
    Last Post: 10-15-2014, 08:46 PM
  2. Hands on Passport, comparing size
    By jdesannees in forum BlackBerry Passport
    Replies: 91
    Last Post: 08-21-2014, 08:35 AM
  3. BlackBerry Passport video by Carphone Warehouse
    By Valerynn in forum BlackBerry Passport
    Replies: 36
    Last Post: 08-17-2014, 10:37 PM
  4. All-Touch Z20 coming with Passport and Classic?
    By kevwill6115 in forum BlackBerry 10 OS
    Replies: 3
    Last Post: 08-14-2014, 02:04 PM

Posting Permissions