[Corbu]

I love those experts...
BNN - Watch TV Online | O'Leary on BlackBerry: I would sell the handset business already

BNN speaks with Kevin O'Leary, chairman of O'Leary Financial Group gives his take on BlackBerry's ability to transition its business. He talks about what he would do if he was CEO John Chen.

[Klipspringers Shoes]

In the IoT space, does BlackBerry realistically have a 'mote' to protect it from, say, Google? What happens if BlackBerry work really hard to create something that isn't so bad, but then Google wake up and roll over and say 'Yeah, we'll take the space for ourselves now'?

It has seemed to me for some time that the name of the game in tech nowhere is command and conquer more than capture the castle. For me, BlackBerry didn't need to take over right away, but they needed to make sure that they were expanding: expanding their OS user base, expanding their BBM base, and of course expanding IoT and enterprise.

It would have been nice, obviously, to see BlackBerry concentrate on selling phones in high numbers at lower prices, and keep BBM free with cross platform video, and perhaps even develop a couple really cool apps of their own instead of hoping other app companies would cater to them.

I'm worried that this approach of 'protect what you have' is going to leave us with a shrinking pile of treasure. It's hard to see where any kind of growth is going to come from over the next quarter or the next year.

Posted via CB10

[world traveler and former ceo]

I love those experts...
BNN - Watch TV Online | O'Leary on BlackBerry: I would sell the handset business already

If it only were so easy.... having said that I am not convinced a new midrange BlackBerry Android will fare any better....

People and businesses are not buying their mobile phones...Big Players have economy of scale and Brand recognition.

I would expect more HW cost cutting and focus on selling of existing phones (only) to try to get to break even for next quarter...then evaluate...imo ... September was CEO Chen's target for decision on HW....

Anyway, (O'Leary) is advocating selling the assets period to big players who can make better use than BlackBerry, with its diminished resources, can... he has a point. .. but nothing CEO Chen doesn't already know....

How to best maximize shareholder value?....

from my awesome Passport

Posted via CB10

[bbjdog]

I love those experts...
BNN - Watch TV Online | O'Leary on BlackBerry: I would sell the handset business already

Let's thank GOD that he isn't BlackBerry CEO!

Posted via my BlackBerry Passport

[Klipspringers Shoes]

If it only were so easy.... having said that I am not convinced a midrange BlackBerry android will fare any better.... would expect more HW cost cutting and selling of existing phones (only) to try to get to break even for next quarter...then evaluate...

Posted via CB10

The truth is that BlackBerry have not given a single BlackBerry 10 (or Android) phone a chance by marketing it properly. It's become a clich� now, but it's a true one. If they are just going to drop devices into the pool to 'test the market', they may as well hang it up. That 'testing the market' thing makes no sense. The market is tested: people like using mobile phones. That's been established, Chen. If BlackBerry had shown some self-confidence and backed the Passport, Classic (which should never have been given that name), and Priv with enough marketing to make the average person know that they existed, things might have been different. The Passport especially was such a wonderful opportunity that was utter wasted. What a shame.


Posted via CB10

[Elephant_Canyon]

Hmmm, I guess I should feel bad for not buying a Priv?

Why should you feel bad about not buying a product you aren't interested in?

[sidhuk]

BBUK14. Where are you when BlackBerry need you. The guy had some genius BlackBerry marketing plans. Your marketing plans remind me of BBUK14. He was so right. BlackBerry screwed up everything. Can't forget the way he explained it with batman punching bad guys Avatar. These kind of marketing genius only come once in a life time. BlackBerry lost it's chance now. BlackBerry don't even know how to dress up their marketing people. Like who wears brown shoes on the stage? Unreal. Not looking good now

Posted Via blackberry passport.

[BanffMoose]

I actually think Faucette has been pretty accurate on BB for the past 2 years. Its hard to hear because the guy gives 0 optimism, but I believe him and Simona from Morgan Stanley got burned hxc from their optimistic analyst predictions back when the z10 came out.

I think you're mistaking Faucette with Gus Papageorgiou of Scotiabank? Faucette has been a BlackBerry bear for a long time. Here's a quote from him in November 2012, 2.5-3 months before the Z10 was even launched:


Bloomberg News | November 7, 2012 12:28 PM ET
RIM BB10 to be dead on arrival, analyst says, causing shares to fall | Financial Post

�We believe BB10 is likely to be DOA,� James Faucette, a Pacific Crest analyst in Portland, Oregon, said in a report. He has the equivalent of a sell rating on the shares. �We expect the new OS to be met with a lukewarm response at best and ultimately likely to fail.�

[bbjdog]

Friday night music.





Posted via my BlackBerry Passport

[JonCBK]

Another dismal earnings release. But all is not lost. It is also another cash flow positive quarter.
Now the handsets may not be selling. But I think I see Chen's strategy with the Priv being to create a very good, very secure Android phone and not worry about the price. You won't get too many consumer purchases with that strategy. But they may yet capture enough corporate sales. Blackberry does have a story to sell with its ability to consistently push security patches on the day that Google announces the latest set of issues.

[bungaboy]

ER Calls seem so ...

[BanffMoose]

Why should you feel bad about not buying a product you aren't interested in?

I don't.

I asked if I should feel bad because we all know that BlackBerry needs handset sales. All consumers vote with our dollars. I didn't buy, so I didn't contribute to their sales numbers and that hurt their earnings. I don't feel bad for not buying a product I don't care about. I feel bad for not being able to help BlackBerry when I know they need help. See?

That said, my BlackBerry stock value went down today, so I really feel bad, but for a different reason.

[markmall]

Chen and his group need to admit that they have to make an effort to market the phones. We all know that no one knows they exist. This is the first step to marketing a product. Before you can create desire, you have to create awareness.

I have typed this probably 50 times on Crackberry. Now more and more people are typing it. I'm getting sick of typing it. I want to go to a shareholder meeting and shout at management. Why not just sell the assets already if you do not even give hardware a chance?

[markmall]

One brave guy asked Chen if they were going to spend on marketing to sell the Priv. This was about a year ago at a question and answer meeting of some kind. Chen said that they got the best bang for the buck by using web advertising.

I knew right then that this product would be a huge failure. Does Chen really want the hardware to succeed? Seems unlikely. But how can he not realize that he can't sell unless he creates more brand awareness?

[Klipspringers Shoes]

Markmall, you are a refreshing voice of truth and reason. As I said earlier, I really feel for the hardworking staff at BlackBerry who created devices like the Passport. All their hard work p!ssed on by BlackBerry HQ and their cartoon minds. I don't understand what the point has been in releasing all these phones when almost no one gets to know they exist. I really don't get it.

Posted via CB10

[BanffMoose]

One brave guy asked Chen if they were going to spend on marketing to sell the Priv. This was about a year ago at a question and answer meeting of some kind. Chen said that they got the best bang for the buck by using web advertising.

I knew right then that this product would be a huge failure. Does Chen really want the hardware to succeed? Seems unlikely. But how can he not realize that he can't sell unless he creates more brand awareness?

Again, the fallacy that the lack of BlackBerry marketing is the primary reason for their inability to sell. We all know they can make CDMA phones that will work on Verizon and Sprint. But if Verizon and Sprint don't authorize those phones on their network, they can spend Apple's entire cash horde on marketing and they will still NOT BE ABLE TO SELL 1 CDMA phone to Verizon or Sprint customers that will actually function on those two networks. Chen's comments are probably indicative of them not being able to convince carriers to do much more than offer their phones for sale. To cost to play is probably too high for BlackBerry and they're making do with what they can from the handouts the carriers are giving them.

If we as a society want the problem fixed, the wireless carriers have to lose the ability to control what handsets can work on their networks. No internet ISP can control what brand of computer or operating system you use to access the internet. Wireless carriers can control which brands can access their wireless networks. That is where you should direct your frustration.

[early2bed]

The truth is that BlackBerry have not given a single BlackBerry 10 (or Android) phone a chance by marketing it properly. It's become a clich� now, but it's a true one. If they are just going to drop devices into the pool to 'test the market', they may as well hang it up. That 'testing the market' thing makes no sense. The market is tested: people like using mobile phones. That's been established,

So easy to say but more difficult to write the check.

So, what's your ball-park ad budget for next quarter? Remember, you made less than $500 million for the quarter. With an ASP of $315 and something like 30% margins, let's say you make a $100 margin on each phone. So, if you spend $10 million dollars on advertising then you need to sell 100,000 additional phones just to pay for it.

Spend, $60 million on ads (about what Microsoft spent each quarter on their smartphone ads in 2013) and you need to double your quarterly sales just to pay for it. Don't forget that you are going to have to lower your prices to be competitive so don't count on the entire $100 margin on each phone. You're trying to break even, here.

BTW, if you are wrong about the demand, TH-style then you've flushed your entire company down the toilet with all that unsold inventory because you have to buy the ads AND make the phones whether you sell them or not.

It's a big bet to make just to try to break even on hardware. An easier way to break even on hardware - don't make it. Sell the hardware patents. There's your profit.

[Superfly_FR]

If we as a society want the problem fixed, the wireless carriers have to lose the ability to control what handsets can work on their networks. No internet ISP can control what brand of computer or operating system you use to access the internet. Wireless carriers can control which brands can access their wireless networks. That is where you should direct your frustration.

AMEN !

[bbjdog]

AMEN !

You can say that again, but please don't. Lol

Posted via my BlackBerry Passport

[Superfly_FR]

So easy to say but more difficult to write the check.

So, what's your ball-park ad budget for next quarter? Remember, you made less than $500 million for the quarter. With an ASP of $315 and something like 30% margins, let's say you make a $100 margin on each phone. So, if you spend $10 million dollars on advertising then you need to sell 100,000 additional phones just to pay for it.

Spend, $60 million on ads (about what Microsoft spent each quarter on their smartphone ads in 2013) and you need to double your quarterly sales just to pay for it. Don't forget that you are going to have to lower your prices to be competitive so don't count on the entire $100 margin on each phone. You're trying to break even, here.

BTW, if you are wrong about the demand, TH-style then you've flushed your entire company down the toilet with all that unsold inventory because you have to make the phones whether you can sell them or not.

And don't forget you'll first have to build the devices, store them, be able to ship and maintain (support, RMA, etc) them ; in short : exactly what BlackBerry can't. In fact they did the opposite to reduce costs and moreover risks of ... guess what ... inventory write-downs, that are very likely to happen, at least for the first round (sounds familiar ?).

[Superfly_FR]

You can say that again, but please don't. Lol

Posted via my BlackBerry Passport

Have a nice evening guys

Edit : I forgot the last FTR of the day.
Congrats Morgan, you nailed it @ $7.50

[Bacon Munchers]

SAF declined 18%.
Hardware declined 11%.
Software is too high, there must be some patent money.

Could be that 'wild card' that was discussed an ER or two ago. That company didn't want the world to know that they were relying on BlackBerry, but Chen made a comment about it somewhere.

[Superfly_FR]

I believe Chen specifically stated (ITW or question, can't remember) that Q4 SW revenue was IP deals free.

[Superfly_FR]

PSA for the serious contributors to this thread:

A friend of mine will have a Conference Call with BBRY next week. If you have any questions that you would like him to bring up, feel free to post them here and I will pass them along. Please have your questions ready by Monday 9 AM at the latest.

Thank you.

Simple one : When signing for services (BES, Good, Watchdox, ...) what's the proportion of customers requiring/asking for a fleet of BlackBerry devices ? Other way to ask : is there a bundled offer licenses+devices ? [underneath : is that where J.C took his stubborn approach against HW division ?]
Thanks Corbu !

[bbjdog]

Just received the BBM update with the free privacy controls.

Posted via my BlackBerry Passport