[Gesig Boek]

I think Morgan justified his reasons behind his claim. If they are to recognised deferred income next quarter plus write down is so jot so bad it would be a big positive as all expenses related have already been accounted for. You understand accounting right?

I am not going to claim to understand accounting, but if my calculations show black is white, I am going to check my calculations, not question reality.

A recently departed posted has suggested it is clear hubris to suggest people on this thread can see things more clearly than analysts paid hundreds of thousands of dollars. Given that the share price is close to hitting its 52 week low I suggest those analysts probably do not think Blackberry just had a "pretty good quarter" and is currently having a "blockbuster" one.

[fin2007]

As for bes10 someone else posted it went up from 60 mil to 80mil q to q.

That may be an aggregate figure of a couple of different Rev streams. Not sure.

Posted via CB10

I mentioned it once, but I know I am wrong on it now.

The software+other(repair) revenue is 80M vs. 94M in Q1, so it is a 15% drop, a quarter ago, it was another 15% drop.

So in reality, BES software revenue is even dropping fast than its service revenue, though I believe partial of the drop was caused by the sale rumor of the company itself.

You have too much faith on bbry just like some other fans here, In reality, BBRY is a dying company with some good assets.

[the_sleuth]

According this article, the initial ASP for Z10 was $500:

Sorry, this Z10 gross margin analysis is totally out to lunch | CrackBerry.com

BB has written off $1B inventory of Z10, so let's assume ASP dropped to $250. Therefore at prices of $349, retailers are still making $100 profit per device. Thus they will gladly push the phones out the door. Also by BB selling the phones directly from its website, then it keeps $200 profit per device.

So I agree the financial picture will look better next quarter. But the next quarter is irrelevant. Why? By release of Q3 results, BB's fate will be sealed in the hands of Fairfax consortium or a rival.

Amazon US, z10 $349.
Amazon.com: BlackBerry Z10 Unlocked Cell Phone - International Version with No Warranty (Black): Cell Phones & Accessories

I'm not an accountant.
I understand carriers can return phones to manufacturer if they couldn't sell them. BlackBerry use the account "Deferred Revenue" to register something similar to a provision in case some of the shipped stock is returned. If they think the probability of carriers selling the shipped stock decreased because the demand is weak, the have to increase this the value of this account "Deferred Revenue" and recognize less revenue. I think they said they didn't change the rules for revenue recognition, they just applied the usual rules.

[morganplus8]

I am not going to claim to understand accounting, ........................... blah, blah, blah
.

Oh, "ignorance is bliss" than is it? I think I hear iMicrosoft calling you to their board.

[Gesig Boek]

Oh, "ignorance is bless" than is it? I think I hear iMicrosoft calling you to their board.

Bliss, I believe.

[fin2007]

According this article, the initial ASP for Z10 was $500:

Sorry, this Z10 gross margin analysis is totally out to lunch | CrackBerry.com''

BB has written off $1B inventory of Z10, so let's assume ASP dropped to $250. Therefore at prices of $349, retailers are still making $100 profit per device. Thus they will gladly push the phones out the door. Also by BB selling the phones directly from its website, then it keeps $200 profit per device.

So I agree the financial picture will look better next quarter. But the next quarter is irrelevant. Why? By release of Q3 results, BB's fate will be sealed in the hands of Fairfax consortium or a rival.

You believe people will go to bbry website to buy phones?

except those die-hard fans, nobody would even bother to visit bbry's website.

[W Hoa]

You believe people will go to bbry website to buy phones?

except those die-hard fans, nobody would even bother to visit bbry's website.

You might also think that people who are not die hard fans of BBRY would bother to visit this website. Evidently, you would be wrong.

[Superfly_FR]

Awww.
Everybody chill out. Now.
Thanks.

[Superfly_FR]

2+m z10s in storage. But now they will sell. Why? Consumers don't know 10.1/2 difference. Most people think bbry is bankrupt. Wrong as they are, that's as far as you will get with them. Now the spotlight is on bbmx and the general population has the proof that bbry is dead. End of summer. Where is instagram. Where is rbc. Where is anyone?

Enterprise fleets and incentives.
I suggested some pages ago they might have provisioned this write down as marketing expense. IMHO could have been smarter.
But I have no (humble) doubt they will push Z10 into free BES10 upgrade process.

[Superfly_FR]

You might also think that people who are not die hard fans of BBRY would bother to visit this website. Evidently, you would be wrong.

Or ... use goolge, yahoo, bing ... and don't even bother the name of the site

[sidhuk]

Dear CB, can you upgrade the CB app to be able to use ignore list please? I am sick and tired of people trying to hi jack the conversation and I cant ignore them until I get to a pc mode.
Thanks in advance

[the_sleuth]

BlackBerry's death is greatly exaggerated. BB is probably irrelevant in U.S. market but $349 will mean 268 EUR in Europe or � 218 in UK . It might not sell well in U.S. but around the world, there is a market for Z10 at the right price point.

Also by Xmas, Amazon will probably be clearing Z10 at $99 unlocked. Like HP TouchPad, it will sell!

You believe people will go to bbry website to buy phones?

except those die-hard fans, nobody would even bother to visit bbry's website.

[fin2007]

Oh, "ignorance is bliss" than is it? I think I hear iMicrosoft calling you to their board.

talking about "ignore list", you are the name which everyone should ignore from day one on this thread.

LOL.

[silversun10]

I am not going to claim to understand accounting, but if my calculations show black is white, I am going to check my calculations, not question reality.

A recently departed posted has suggested it is clear hubris to suggest people on this thread can see things more clearly than analysts paid hundreds of thousands of dollars. Given that the share price is close to hitting its 52 week low I suggest those analysts probably do not think Blackberry just had a "pretty good quarter" and is currently having a "blockbuster" one.

OK, don't understand accounting, has no idea about investing, only likes WP. That is three strikes there, so you are OUT!!!

[Superfly_FR]

! HEY !

Stop. Now.Please.

[peter9477]

People, please don't waste your time responding to the relentlessly, religiously negative, who will never -- NEVER -- engage in honest debate. They're not here for any purpose other than to drag you into endless argument and rile you up.

Report them, put them on ignore, and do NOT quote them! Life's better for everyone that way, and you'll have more time for your kids. Or drinking... whatever turns your crank. :-)

(This post inspired by the many pages of wasted time represented here, not any individual post that may slip in just ahead of mine. This is just a PSA.)

[fin2007]

BlackBerry's death is greatly exaggerated. BB is probably irrelevant in U.S. market but $349 will mean 268 EUR in Europe or � 218 in UK . It might not sell well in U.S. but around the world, there is a market for Z10 at the right price point.

Also by Xmas, Amazon will probably be clearing Z10 at $99 unlocked. Like HP TouchPad, it will sell!

People still do not get it. BBRY phone does not sell anywhere, just check the sales number in Q2 report.

True, if it can sell at $99, I believe it will be sold out quickly, but that is like a loss of 60%+.

[danprown]

And then everyone will be raving what a great device it is and why BBRY didn't market it... and we will be wondering what if....

BlackBerry's death is greatly exaggerated. BB is probably irrelevant in U.S. market but $349 will mean 268 EUR in Europe or � 218 in UK . It might not sell well in U.S. but around the world, there is a market for Z10 at the right price point.

Also by Xmas, Amazon will probably be clearing Z10 at $99 unlocked. Like HP TouchPad, it will sell!

[cgk]

Any sign of the MD&A?

[the_sleuth]

Please reread my post, "around the world, there is a market for Z10 at the right price point."

The phone works and with 10.2 installed, it works with Android 4.2.2. Customers are not stupid and at the right price watch it fly off the shelves.

Whether its good for shareholders is irrelevant as BBRY will be in the hands of Fairfax consortium or a rival by release of Q3 results.

People still do not get it. BBRY phone does not sell anywhere, just check the sales number in Q2 report.

True, if it can sell at $99, I believe it will be sold out quickly, but that is like a loss of 60%+.

[danprown]

I wonder who here believes that, when all is said and done, TH and the Board made things look worse for PW by design?

I have been going back and forth on the issue.

[Gesig Boek]

Please reread my post, "around the world, there is a market for Z10 at the right price point."

Of course it will sell, but presumably we are only talking 2-3 million handsets, which is not enough to create a viable ecosystem. The touchpad sold after all, despite being one of a kind with no hope of real future support.

It will not matter if BB does not follow it up with another attractive, low-cost device. Since BB is going pro-sumer I suggest thats unlikely.

[tiziano27]

Of course it will sell, but presumably we are only talking 2-3 million handsets, which is not enough to create a viable ecosystem. The touchpad sold after all, despite being one of a kind with no hope of real future support.

It will not matter if BB does not follow it up with another attractive, low-cost device. Since BB is going pro-sumer I suggest thats unlikely.

You can install Android on the Touchpad, that helped a lot. Maybe BlackBerry should leak drivers to support Android on the z10.

[Soumaila Somtore]

I will be voting "No" too for that I am glad I didn't sell!!

I completely agree with you, I will be voting "no" until they explain to me what the DR is for. They usually have a run rate of $ 300 million plus ($ 336 million) and now they are closing in on $ 900 million without telling us what they got paid for and failed to deliver on. I don't care what the breakdown is for that $ 498 million is, it could be Services or hardware and likely mostly hardware but we need to know what it is as it gets shown as revenue in Q3 against written down products. Not good.

PS. This is only one of several issues that no one is talking about.

[hootyhoo]

Things get touchy in here and the tone of a question is often hard to glean, but honest question.

Why doesn't Watsa pick up more shares on the cheep down here if he is confident that the deal will go through at $9 ?