Originally Posted by
a1s2d3f4g5 After reading the press release and listening to Conf Call, here are some quick thoughts:
Definitely disappointing that there was a loss.
Loss was mostly because shipments of BB10 were down, and because COGS went up (amortization?).
BB7 posted another strong quarter - seems sell-through was about 4.5 million BB7
Good news they are making another BB7 device.
My rough estimates for shipments and sales: 2.7 m BB10 shipped, sold 2.2m BB10 sold; 4.1 m BB7 shipped, 4.6 m BB7 sold
Service revenues to continue to decline - down to approximately 800 million per year
Cash up - I'm not sure that matters so much at this point. One analyst said the majority of cash increase was because of an income tax issue. Earnings are more important now. Probably will lose some cash moving forward.
Quarter was certainly below expectations but NOT as bad as Wall Street is making it to be. Shipments equaled sales, and the real disappointment came from 1) decline in BB10 ASP; 2) increase in amortization COGS; 3) Fewer BB10 shipped than expected.
To me the sales number is more important that the shipped number.
The key will be getting BB10 sell-through higher.
A little disappointing that the company spent so much more on marketing and we did not see too many direct-to-consumer ads here in North America.
They have to get more of an ad presence but also can't spend too much more. Tough dilemma. May need to shift ad dollars from carriers to consumers.
Thorsten was asked whether they will stop making devices. He was vague. But said that he doesn't think it will happen short-term because businesses like the devices.
Disappointing no BB10 for Playbook.
Overall I think the market is overreacting a little this morning.