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04-17-15 05:55 PM
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  1. MollyMorton's Avatar
    For a while now, BlackBerry, with many Crackberrians following quickly behind, have downplayed hardware. I've been sceptical of this from day one, and wonder what he actually means. What do you guys think?

    A) devices really aren't important, so who cares.
    B) devices are important, but we are scared to make a push and not succeed
    C) we honestly think that it's best to release phones without advertising or marketing because selling poorly is fine for now
    D) we haven't got a clue what we are doing.

    There are countless other possibilities of course...

    Posted via CB10
    04-01-15 07:17 AM
  2. AnimalPak200's Avatar
    Their hardware sales suck so obviously they have to downplay its importance. Just basic (desperate/losing/sad) human behavior.

    Posted via CB10
    Q10Bold and JeepBB like this.
    04-01-15 07:27 AM
  3. Q10Bold's Avatar
    For a while now, BlackBerry, with many Crackberrians following quickly behind, have downplayed hardware. I've been sceptical of this from day one, and wonder what he actually means. What do you guys think?

    A) devices really aren't important, so who cares.
    B) devices are important, but we are scared to make a push and not succeed
    C) we honestly think that it's best to release phones without advertising or marketing because selling poorly is fine for now
    D) we haven't got a clue what we are doing.

    There are countless other possibilities of course...

    Posted via CB10
    Like AnimalPak200 or D) we haven't got a clue what we are doing.
    04-01-15 07:33 AM
  4. ccbs's Avatar
    He is a specialist CEO who has the expertise in managing software and service company. It is clear as heck when the board decided to bring him on board to get the company into new direction. Devices are the present to bring revenue before software and services take over as the future.
    04-01-15 03:56 PM
  5. AhmadCentral's Avatar
    The issue is that Hardware and Service revenue account for over 90% of BlackBerry's total revenue.

    And BlackBerry are trying to grow software from ~7.0% to something much higher.

    So hardware matters a lot but once they stop their hardware division and people move away from BBOS7 then BlackBerry will desperately need their software division to have picked up the slack.
    04-01-15 04:22 PM
  6. kbz1960's Avatar
    E) Don't be surprised if we quit making hardware altogether.
    JeepBB likes this.
    04-01-15 05:02 PM
  7. Toodeurep's Avatar
    It shouldn't be a surprise if they leave hardware. They have made profitability a key factor in making that decision. Unfortunately, it seems only Apple is trending positively on the domestic front. The good news is that JC sees hardware as a way to sell software and services. That might convince him to stay in longer.

    E: Massive regrouping/circling of the wagons.
    04-01-15 06:52 PM
  8. lawguyman's Avatar
    E) We know we can't compete with the big dogs so we'll make not many device with lackluster specs to complement our mobile security business.

    Posted via CB10
    04-01-15 07:25 PM
  9. birdman_38's Avatar
    F) Hardware is a necessary evil.
    04-01-15 11:20 PM
  10. N_Koehler's Avatar
    Is there any chance they would license the BB10 os to other phone manufacturers, similar to android, if they were to focus on software?
    04-02-15 08:58 AM
  11. kbz1960's Avatar
    Is there any chance they would license the BB10 os to other phone manufacturers, similar to android, if they were to focus on software?
    I doubt anyone would be interested given the sale numbers. Plus they are attempting to offer some of the best parts to other OS's.
    04-02-15 09:01 AM
  12. birdman_38's Avatar
    I doubt anyone would be interested given the sale numbers. Plus they are attempting to offer some of the best parts to other OS's.
    Ya, they kinda discarded that prospect with the upcoming BlackBerry suite.
    kbz1960 likes this.
    04-02-15 09:53 AM
  13. ljfong's Avatar
    Is there any chance they would license the BB10 os to other phone manufacturers, similar to android, if they were to focus on software?
    Thorsten tried that and failed miserably.

    Posted via CB10
    04-02-15 11:49 AM
  14. FrankIAm's Avatar
    He gave up.
    04-02-15 11:56 AM
  15. RubberChicken76's Avatar
    E) We need to diversify our business into different areas, with each of them having measurable objectives.

    He needs to diversify his revenue so that it's not wholly dependent on selling devices for the survival of the company.

    Look at his competitors.

    Outside of the iPhone, Apple sells tablets, computers, accessories and software.

    Outside of Windows Phone, Microsoft sells Office, Windows for Desktop, Exchange and the like.

    Google makes money off search.

    If Chen doesn't have profitable businesses coming from multiple sources that can be measured on their own, BlackBerry skepticism is going to remain.

    I don't believe he has plans to "jettison" the business right now, but he's being extremely cautious. I also think it's actually a directive from the board that he be cautious because of the PlayBook at Z10 write-downs. That's why we're only seeing a small number of device launches, done in careful inventory batches and through specific channels. He's definitely trying to figure out how to make devices profitable again but in a way that he protects the company while growing businesses besides the device business.

    Who knows if it will work? Who knows if BlackBerry fans will like the devices he releases, as the selection has been vastly reduced.

    But his job is to keep the company going and add value to shareholders. Diversification and higher margin businesses than hardware are what he's trying to do.
    Last edited by RubberChicken76; 04-02-15 at 12:29 PM.
    kbz1960, nt300, Vorkosigan and 1 others like this.
    04-02-15 12:02 PM
  16. nt300's Avatar
    Is there any chance they would license the BB10 os to other phone manufacturers, similar to android, if they were to focus on software?
    That will be a last minute decision based on John Chen's comments back in late 2014. From various interviews. If I can make money on Licensing BB10, then I will do so. But I first need to bring the company to a certain level.

    The Idea of splitting the company into 4 divisions is simple. BlackBerry can and will continue hardware, and even if it caters to the niche for example, its going to continue. The idea is to not needing to "RELY" on hardware any longer. So if there is a quarter with low hardware sales for example, it won't seriously impact the companies cash flow. For software to get to where its suppose to be, they need another 5 to 8 years. The more BB10 hardware penetrate the industry the faster software will grow. Basic economics. How do you ensure BB10 penetration, by releasing deices that the majority of consumers want. Such as the Z30. (Z30 was released with Crap Marketing, hence slow sales.).

    I doubt anyone would be interested given the sale numbers. Plus they are attempting to offer some of the best parts to other OS's.
    those parts are for Enterprise only at a cost. They won't be available for the consumer market..
    kbz1960 likes this.
    04-02-15 12:30 PM
  17. nt300's Avatar
    E) We need to diversify our business into different areas, with each of them having measurable objectives.

    He needs to diversify his revenue so that it's not wholly dependent on selling devices for the survival of the company..
    BINGO
    You hit the nail on the head. They need to build up other parts of the business so they no longer have to be reliant on Hardware Revenue. Doesn't mean they are going to stop making BB10 based hardware though. It just means, profits that come from hardware will be like Bonus Cash for example.

    I can see a Future BB10 Tablet (John Chen's words) He said if it makes sense to me, I am thinking about it and I want one, just not ATM. The business needs to get to a certain position before venturing out into the Tablet Market once again. Then he sited 2016 you never know. Also talked about future interesting BB10 based handsets via the future.
    04-02-15 12:37 PM
  18. birdman_38's Avatar
    I can see a Future BB10 Tablet (John Chen's words) He said if it makes sense to me, I am thinking about it and I want one, just not ATM.
    He never said it would ship with BlackBerry 10.
    04-02-15 02:44 PM
  19. nt300's Avatar
    He never said it would ship with BlackBerry 10.
    Yes a BlackBerry based Consumer Tablet branded as BlackBerry and most likely called PlayBook 2 or some other name will be based on BB10 for obvious reasons. And John Chen clearly stated a BB10 Tablet if and when the time is right. Because the reporter asked him a direct question. And don't say based on Android LOL, That;'s just silly.
    04-03-15 09:34 PM
  20. sentimentGX4's Avatar
    I think it's always been
    E) We care about hardware a lot and want it to succeed but telling this to investors will divert criticism for our failures and limit expectations
    04-03-15 09:47 PM
  21. Bbnivende's Avatar
    Yes a BlackBerry based Consumer Tablet branded as BlackBerry and most likely called PlayBook 2 or some other name will be based on BB10 for obvious reasons. And John Chen clearly stated a BB10 Tablet if and when the time is right. Because the reporter asked him a direct question. And don't say based on Android LOL, That;'s just silly.
    I can think of very few reasons to buy a Tablet that would be the same as a Amazon Tablet for apps.
    04-03-15 11:07 PM
  22. web99's Avatar
    The issue is that Hardware and Service revenue account for over 90% of BlackBerry's total revenue.

    And BlackBerry are trying to grow software from ~7.0% to something much higher.

    So hardware matters a lot but once they stop their hardware division and people move away from BBOS7 then BlackBerry will desperately need their software division to have picked up the slack.
    Actually hardware accounted for approximately 40% of revenue in BlackBerry's latest earnings report. But you are right about BlackBerry desperately needing its software division to pick up the slack as BIS revenue from BBOS dries up with more people moving away from BBOS7.


    Posted via CB10
    04-04-15 02:40 AM
  23. Bbnivende's Avatar
    If BIS was such a money maker, why couldn't they have had a BB10 version of BIS for specific markets?

    Posted via CB10
    04-04-15 07:53 AM
  24. kbz1960's Avatar
    If BIS was such a money maker, why couldn't they have had a BB10 version of BIS for specific markets?

    Posted via CB10
    Good question. I don't know about those markets much but BIS slowed down a 3G connection. I can imagine it would slow down a 4G connection or it would get too expensive to support only a few small markets.
    04-04-15 08:37 AM
  25. white shirt only's Avatar
    Another hardware is doomed thread...

    Chen has said numerous times that Blackberry is now making money on hardware. Is this a downplay from two years ago's billion dollar write-off with fantastic Z10 and gorgeous Z30 millions of people want?

    Posted via CB10
    04-04-15 08:39 AM
34 12

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