1. UnlimitedEra's Avatar
    It's all over the news. CNN, and fox.
    They are all saying blackberry is dying. Somehow it's not. How do they still manage to earn money with all the media buzz around? Does blackberry still rely on BIS subscription fees? Do they earn money through bbm on other platforms?
    Are they still earning from the bb10 sales?

    Posted Via CB10 Running On Z10STL100-2 Using OS Version 10.2.1.1925
    01-09-14 04:04 AM
  2. jpvj's Avatar
    They are still making money from BIS subscriptions, BES 5/10 CAL's, T-support fees, App sales and hopefully soon devices.
    The question is if they - as Mr. Chen states - can make more money that they spend. So far the workforce has been cut dramatically, production costs has been optimized (fewer plants, Foxcomm deal) as well as savings all over the line (no more BB Live).

    BES subscriptions is probably also generating a bit, until all users have left the legacy BB platform and moved on to either BB10 or other platforms.
    UnlimitedEra likes this.
    01-09-14 04:13 AM
  3. belfastdispatcher's Avatar
    They are still making money from BIS subscriptions, BES 5/10 CAL's, T-support fees, App sales and hopefully soon devices.
    The question is if they - as Mr. Chen states - can make more money that they spend. So far the workforce has been cut dramatically, production costs has been optimized (fewer plants, Foxcomm deal) as well as savings all over the line (no more BB Live).

    BES subscriptions is probably also generating a bit, until all users have left the legacy BB platform and moved on to either BB10 or other platforms.
    I might be wrong but even if all their BES5 customers would move to BES10 overnight that wouldn't generate extra income, after all BES5 isn't free. They would need additional enterprise customers to generate extra income.
    01-09-14 04:24 AM
  4. jpvj's Avatar
    I might be wrong but even if all their BES5 customers would move to BES10 overnight that wouldn't generate extra income, after all BES5 isn't free. They would need additional enterprise customers to generate extra income.
    100% agree.

    BlackBerry knew this years back, but I guess they tried to be like Apple and make a lot of money on devices, sale of apps, music and video as well as MDM CALs for iOS/Android (and soon WP).

    Their agressive device price strategy and poor marketing made the sales flatline which again made the eco system much less worth. IMHO they should have dumped the Z10 and given huge upgrade rebates to boost the initial userbase. Instead they made a huge inventory write down...
    That's IMHO one of the major reasons they are "back to enterprise" now.
    01-09-14 04:43 AM
  5. --TommesJay--'s Avatar
    Also we have to distinguish between 'operating losses' and actual cash flow. Although BlackBerrys hardware business isn't profitable, they still generate cash (they can work with) on every device shipped, which were still over 4M units last quarter. That keeps business and operations going.

    Posted via CB10
    01-09-14 05:14 AM
  6. Baber Sultan's Avatar
    The Z10 had more of an inventory problem than anything else. The hundreds of millions of dollars written down was because simply put, inventory there that just never got bought. Sure you can attribute factors such as poor marketing or poor release timing, but bottom line is that they need to be more efficient in the distribution of their units. Having a optimized delivery system (just-in-time for example) as I'm hoping they will achieve through learning from their mistakes and partnerships with companies such as Foxconn, means they have a chance to control that from happening again. As for the Z10s, currently they are free on a lot of contracts and as the success of BB10 and other developments continue, more consumers/enterprise users my be attracted to it. It's definitely not a lost cause, errors/mistakes sure, but doesn't mean a dismal future for a talented company.
    01-09-14 03:15 PM

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