Originally Posted by
MarsupilamiX No, I understand that perfectly and I have said more than once that the downsizing was necessary, because the enterprise became too big, for their sales volume.
I also understand that inventory, supply and what not management is important. I didn't study international management to not know that.
Where you seem to be confused, is that I am not just talking about the concept of planning correctly.
The way you say it, sounds like all they have to do, is order the right amount of parts and everything will work out fine.
If you really believe that it is that simple for BlackBerry, I would probably need tell you, that you should inform yourself better.
BlackBerry doesn't exist in a vacuum. They actively compete with other manufacturers. It's not enough to just sell a few handsets if they want to stay in the hardware business in the longer term. The app situation for example, is directly linked to that. Because of the marketshare BlackBerry has, devs aren't interested. This won't change, if BlackBerry is more or less profitable, as long as the market share stays that low.
And a reason for the low market share is the lack of an ecosystem.
It also isn't exactly a revelation, that a business which builds too many products they can't sell, will have a negative balance sheet.
But you know... The downsized BlackBerry doesn't overproduce, but still isn't profitable.
I mean, if I follow your train of thought, you would probably just tell me that BlackBerry could get even smaller, if they still aren't profitable now, is that correct?
Well, producing phones just for the sake of exactly producing so many that you don't have to leave the business, is a losing strategy in the mid to long run. Not to mention, that BlackBerry doesn't even talk about profits, they talk about being break-even.
Anyhow, for such a strategy, it's obvious that there's no growth. BlackBerry isn't really diversified either, so it binds capital. They still have one single point of failure there, if the rest of their operations aren't really profitable. With BlackBerry's own formulated goals, they will never have a real native ecosystem. If Google decides to change how Android works, BlackBerry HAD apps.
Meanwhile the phones from the competition just get cheaper and cheaper, while gaining even more advantages over BlackBerry.
And the security USP BlackBerry still has right now, also won't help them forever.
Given enough time, the competition will catch up in that area as well.
It's a losing strategy to be happy with 0.6% marketshare, when you're not a luxury manufacturer.
@Edit:
Yeah, I bought a Passport today.
I hope that it'll simplify my work flow and text manipulations.
Let's see.