10-19-15 07:16 AM
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  1. ToniCipriani's Avatar
    As titled, take this with a HUGE grain of salt. 1.2k+ comments on /r/android, this one caught my eye:

    https://www.reddit.com/r/Android/com...kberry/cw2ila3

    Better order them while you can. Less than 500k part ordered with a 22 week lead time for more. No clue why Chen set up this phone to fail hard.
    10-17-15 08:25 AM
  2. Alain_A's Avatar
    Wow, that's too many...Lol
    JeepBB, mathking606 and extisis like this.
    10-17-15 08:28 AM
  3. Joao Oliveira's Avatar
    As titled, take this with a HUGE grain of salt. 1.2k+ comments on /r/android, this one caught my eye:

    https://www.reddit.com/r/Android/com...kberry/cw2ila3
    Doesn't sound right. So Chen wants to sell 5 milion a year, and only ships half million for the first half year? Even the passport sold more than that,

    Maybe that guy on reddit is just being sarcastic
    10-17-15 08:31 AM
  4. A_Aviator_A's Avatar
    The first thing you do when bleeding cash is to put direct efforts into inventory management. He may want to sell 5million phones per year, but paying suppliers for millions of phones and then locking them up in a warehouse until they're sold ties up allot of equity, which BB doesn't have.


    Assuming this rumor is true, it makes sense.
    JeepBB, JohnGrey, dolco and 3 others like this.
    10-17-15 08:35 AM
  5. Bluenoser63's Avatar
    Doesn't sound right. So Chen wants to sell 5 milion a year, and only ships half million for the first half year? Even the passport sold more than that,

    Maybe that guy on reddit is just being sarcastic
    Truth is what I have been saying. Chen does not want to make hardware. He doesn't understand it and wants out. So he will make a half hearted attempt with the Priv and when it fails, he will say. "See. I couldn't make it so I am out". He has done everything in his power to make BB10 fail and now the Priv. When I traveled though the states and showed them my Z30, they had no clue that BlackBerry 1. Still made phones or 2. Make a full touch device.

    Now with the limited volume and high price and the Chen saying it's as good as the KNOX, he has setup the Priv to fail to get what he wants.
    so crow, Mr4aces and awakerman like this.
    10-17-15 08:37 AM
  6. Joao Oliveira's Avatar
    Truth is what I have been saying. Chen does not want to make hardware. He doesn't understand it and wants out. So he will make a half hearted attempt with the Priv and when it fails, he will say. "See. I couldn't make it so I am out". He has done everything in his power to make BB10 fail and now the Priv. When I traveled though the states and showed them my Z30, they had no clue that BlackBerry 1. Still made phones or 2. Make a full touch device.

    Now with the limited volume and high price and the Chen saying it's as good as the KNOX, he has setup the Priv to fail to get what he wants.
    Remove that tinfoil hat mate.... if he wanted to quit hardware, he would just cut it. Why would he wast his money on hardware to fail on purpose when he could spend it in it's "loved" software as you say... You're saying the CEO is sabotaging the company lol

    Huge grain of salt: only 500k units in the chain-tinfoilhat.jpg
    10-17-15 08:40 AM
  7. anon(679606)'s Avatar
    Maybe they ran out'a horses to make'da glue so they will pack the rest as kits you assemble & tell purchasers to get superglue sticks at the dollar store for that...

    Posted via CB10
    10-17-15 08:42 AM
  8. Joao Oliveira's Avatar
    The first thing you do when bleeding cash is to put direct efforts into inventory management. He may want to sell 5million phones per year, but paying suppliers for millions of phones and then locking them up in a warehouse until they're sold ties up allot of equity, which BB doesn't have.


    Assuming this rumor is true, it makes sense.
    How about the 22 week lead time? that doesn't make sense. Is that lead time, the time for the next batch of phones? Because by 22 weeks, many other cool and newer smartphones came out.
    10-17-15 08:42 AM
  9. yessuz's Avatar
    The first thing you do when bleeding cash is to put direct efforts into inventory management. He may want to sell 5million phones per year, but paying suppliers for millions of phones and then locking them up in a warehouse until they're sold ties up allot of equity, which BB doesn't have.


    Assuming this rumor is true, it makes sense.
    With 6 consecutive quarters of "positive cash flow" the term "bleeding cash" doesn't sound right to me

    Posted via CB10
    Irish Blues and Mecca EL like this.
    10-17-15 08:47 AM
  10. A_Aviator_A's Avatar
    How about the 22 week lead time? that doesn't make sense. Is that lead time, the time for the next batch of phones? Because by 22 weeks, many other cool and newer smartphones came out.
    True, you miss the opportunity to go after the euphoric consumers who jump in, but those sales aren't guaranteed to begin with. I'm certain they adopted the same strategy as with the passport, tight inventory controls and an action plan for delivering further units to market if necessary.

    Remember, assuming they make 1 million units at a wholesale cost of 300 per unit, they still have to cut check to their suppliers for 300 million without guarantee that the market will take up those phones. Remember the great playbook writeoff of a few years back, pennies on the dollar?
    People say that Chen hates hardware, Im pretty sure he just hates the write-downs on it.
    10-17-15 08:48 AM
  11. A_Aviator_A's Avatar
    With 6 consecutive quarters of "positive cash flow" the term "bleeding cash" doesn't sound right to me

    Posted via CB10
    Then lets go with the 800K BB10 units moved last quarter and what its costing them to stack the remaining BB10 hardware up on their shelves.
    10-17-15 08:49 AM
  12. anon(679606)'s Avatar
    Chen hates hardware because he doesn't know how to use it...

    Posted via CB10
    ummie4, app_Developer and Doggerz like this.
    10-17-15 08:50 AM
  13. anon(679606)'s Avatar
    Playbook went down like Touchpad... great devices, no marketing...

    Posted via CB10
    A_Aviator_A likes this.
    10-17-15 08:51 AM
  14. wilber1's Avatar
    The first thing you do when bleeding cash is to put direct efforts into inventory management. He may want to sell 5million phones per year, but paying suppliers for millions of phones and then locking them up in a warehouse until they're sold ties up allot of equity, which BB doesn't have.


    Assuming this rumor is true, it makes sense.
    You are right Heinz made this mistake with the Z produced way too many .Do people Really think Chen wants hand sets to fail ? he wants/has to make money on them .
    10-17-15 08:53 AM
  15. Xadion's Avatar
    Remove that tinfoil hat mate.... if he wanted to quit hardware, he would just cut it. Why would he wast his money on hardware to fail on purpose when he could spend it in it's "loved" software as you say... You're saying the CEO is sabotaging the company lol

    Click image for larger version. 

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    It's not tinfoil..its truth... look at Leo @ HP- he learned that you just can "up and cut" something like this. He has to "try" and then say "oh well..." because of many politic reasons.

    It's a huge multi year plan, back office deals... he is there to essentially she'd BlackBerry to software while also tanking the stock to a deal for buyout. You can't just do that quickly without getting into regulatory trouble...

    All for our SAP overlords.

    Posted via CB10
    10-17-15 08:56 AM
  16. lawguyman's Avatar
    Inventory risk is no longer on BlackBerry. It is on the manufacturer, whoever that may be.

    BlackBerry had shopped the phone to the carriers. Carriers have placed orders. BlackBerry will manufacture enough to fill the orders.

    Who knows how many were ordered by the carriers? Who knows if the carriers underestimated or overestimated the demand? Big questions.


    Posted via CB10
    00stryder, Mecca EL and wincyUt like this.
    10-17-15 09:03 AM
  17. Bluenoser63's Avatar
    Remove that tinfoil hat mate.... if he wanted to quit hardware, he would just cut it. Why would he wast his money on hardware to fail on purpose when he could spend it in it's "loved" software as you say... You're saying the CEO is sabotaging the company lol
    No. He can't just quit like that. That would be suicide for the company. He is transitioning BlackBerry to no phones buy getting people comfortable with BlackBerry Android phones like the equal as he says Android. Then he thinks he can just stop production after 12-18 months and just sell software and tell people to buy other companies phones and put BlackBerry stuff on them.
    Adam Frix likes this.
    10-17-15 09:07 AM
  18. muhlan's Avatar
    As titled, take this with a HUGE grain of salt. 1.2k+ comments on /r/android, this one caught my eye:

    https://www.reddit.com/r/Android/com...kberry/cw2ila3
    22 weeks lead time? Really? Hard to believe that any phone would take 22 weeks to be produced in huge numbers. So just another BS rumor

    Posted via CB10
    10-17-15 09:11 AM
  19. A_Aviator_A's Avatar
    Inventory risk is no longer on BlackBerry. It is on the manufacturer, whoever that may be.
    Posted via CB10
    Do you have a source on this? It doesn't make sense to me, BB orders the phones and attempts to market them but if they don't sell, the supplier will pay for the cost of the write-offs?
    dolco likes this.
    10-17-15 09:11 AM
  20. lawguyman's Avatar
    No. He can't just quit like that. That would be suicide for the company. He is transitioning BlackBerry to no phones buy getting people comfortable with BlackBerry Android phones like the equal as he says Android. Then he thinks he can just stop production after 12-18 months and just sell software and tell people to buy other companies phones and put BlackBerry stuff on them.
    BlackBerry still gets over 40% of its revenue from smartphones. Get real.

    Posted via CB10
    Mecca EL and wincyUt like this.
    10-17-15 09:11 AM
  21. conite's Avatar
    No. He can't just quit like that. That would be suicide for the company. He is transitioning BlackBerry to no phones buy getting people comfortable with BlackBerry Android phones like the equal as he says Android. Then he thinks he can just stop production after 12-18 months and just sell software and tell people to buy other companies phones and put BlackBerry stuff on them.
    While I agree that Chen would probably be OK with licensing the keyboard and selling the BlackBerry Experience Suite after he can establish value for it, I'm sure he'd be very happy if the Priv does well in its own right. He would not walk away from a potential revenue source like that. There is a real opportunity here for his handset business - unlike anything he ever had with BB10 devices.

    PassportSQW100-4/10.3.2.2789
    Mecca EL and wincyUt like this.
    10-17-15 09:13 AM
  22. lawguyman's Avatar
    Do you have a source on this? It doesn't make sense to me, BB orders the phones and attempts to market them but if they don't sell, the supplier will pay for the cost of the write-offs?
    http://mobile.reuters.com/article/idUSBRE9BN02Q20131224

    Posted via CB10
    Mecca EL likes this.
    10-17-15 09:14 AM
  23. Joao Oliveira's Avatar
    True, you miss the opportunity to go after the euphoric consumers who jump in, but those sales aren't guaranteed to begin with. I'm certain they adopted the same strategy as with the passport, tight inventory controls and an action plan for delivering further units to market if necessary.

    Remember, assuming they make 1 million units at a wholesale cost of 300 per unit, they still have to cut check to their suppliers for 300 million without guarantee that the market will take up those phones. Remember the great playbook writeoff of a few years back, pennies on the dollar?
    People say that Chen hates hardware, Im pretty sure he just hates the write-downs on it.
    I don't know if you know it, but 22 weeks it's almost half an year. So you want to sell 5million in 1 year, you only make 500k for the first half, then you expect to sell 4.5 million for the rest of the year when the phone isn't novelty anymore.

    I don't buy this rumour.
    10-17-15 09:17 AM
  24. Bluenoser63's Avatar
    BlackBerry still gets over 40% of its revenue from smartphones. Get real.

    Posted via CB10
    It may get 40% of it's revenue, but they are losing money on them. This is also why Chen is doing this strategy and can't just cut and run. He has to do a controlled failure to accomplish what he wants. In two years, BlackBerry will no longer be making hardware.
    extisis likes this.
    10-17-15 09:19 AM
  25. anon(679606)'s Avatar
    Do you have a source on this? It doesn't make sense to me, BB orders the phones and attempts to market them but if they don't sell, the supplier will pay for the cost of the write-offs?
    No wonder they use cheap glue...

    Posted via CB10
    Q10Bold likes this.
    10-17-15 09:19 AM
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