Blackberry "Subscribers" Question...
Do BB10 phones count as "subscribers" (considering they don't operate on BIS)? If not, we should expect a decline in subscribers as more people adopt BB10 devices. Further (if this is the case), Heins needs to spend some time explaining this fact in greater detail.
BBRY sold approx. 5 million BB10 devices since release and subscriber base is down 4 million. Does this suggest that 4 million buyers were existing customers (with 1 million new customers)?
This would also explain why BB will no longer report subscribers (as the count is irrelevant since BB10 devices aren't counted as subscribers).
Can someone confirm this? I think it is important to understanding the context of today's earnings report.
Here's the answer to my own question
Ok, so I checked Blackberry's financial report to see how they define the term "subscriber" and here's what I found:
"...the Company has adjusted the methodology it uses to calculate the size of its subscriber base. Rather than calculating
the total of all subscriber accounts that have an active status at the end of a reporting period and for which infrastructure access fees
are thereby generated, the Company currently identifies its BlackBerry subscriber base as the total of all BlackBerry subscriber
accounts that are provisioned to access BlackBerry services, regardless of whether the Company is receiving infrastructure access fees
from each such subscriber in any given month. The Company believes this change will better reflect the base of BlackBerry users that
may contribute to service revenues in the future, whether solely through infrastructure access fees or the integrated service and
software offering being developed."
So there you have it. Subscribers include BB10 devices that don't generate monthly "Service Access Fees" for Blackberry.