[Oshasat]

So for all those who've prematurely proclaimed BlackBerry hardware dead, here's what Chen said in (I assume) Dubai: ''...Talking about the hardware business, Chen said that the focus on devices is at 30%. BlackBerry's goal in this segment is to become profitable: "It's not dead. Now, the most important thing for me is to make money from it. It is doable."

Posted via CB10

[donnation]

He's never said anything different than that. "If we can become profitable in hardware then we'll stay in hardware. If we can't, we won't."

[donnation]

The actual funny thing is, what else would their goal be? To continue to lose money on it?

[KNEBB]

BlackBerry's (Chen's) goal is to use Hardware profits to finance the transition to a Software Manufacturer.
The irony is once done, the hardware will be useless to Chen and BlackBerry, and ultimately lost to the users who have supported them.

Posted via CB10

[kvndoom]

BlackBerry's (Chen's) goal is to use Hardware profits to finance the transition to Software Manufacturer.
The irony is once done, the hardware will be useless to Chen and BlackBerry. And ultimately lost to the users who have supported them.

Posted via CB10

There are no hardware profits. There haven't been any hardware profits in years. BlackBerry would already be profitable if he had nuked the phone division his first day.

BlackBerry Classic non-camera, Cricket Wireless

[ohaiguise]

There are no hardware profits. There haven't been any hardware profits in years. BlackBerry would already be profitable if he had nuked the phone division his first day.

BlackBerry Classic non-camera, Cricket Wireless

This is a good example of the parasitic and damaging nature of stock market driven capitalism. Surely the aim should be on producing to meet demand, not servicing the greed of stock market speculators. Strip off the bonuses and stock options for the 'big suits' and you'll find your costs coming down.

[KNEBB]

What's the reason for the BlackBerry10 hardware. The Priv is useful as an example that BlackBerry can operate BlackBerry Security Software using Android. And sold at a premium price, not to sell maximum units (5 million units aside), but to make maximum profit. If unit sales was the plan, it would have been priced differently with plans to sell it
also as a BlackBerry 10 unit.

Posted via CB10

[JeepBB]

BlackBerry's (Chen's) goal is to use Hardware profits to finance the transition to Software Manufacturer.
The irony is once done, the hardware will be useless to Chen and BlackBerry. And ultimately lost to the users who have supported them.

There are no hardware profits, as others have noted, but there *is* hardware revenue. IIRC it's still bringing in around 30% (it was 40%) of revenue. Chen needs that revenue stream ... until he doesn't!

With that slight change, I believe that what you've posted is indeed the plan.

[sorinv]

The actual funny thing is, what else would their goal be? To continue to lose money on it?

But that's exactly what he has been doing: moving the goal post repeatedly in time and volume later and lower, respectively. He will move it again beyond September and below 3.2 Million.

[Originalloverman]

The actual funny thing is, what else would their goal be? To continue to lose money on it?

What's funny about that? Isn't that every business goal?

The power of the force and the  passport.

[donnation]

What's funny about that? Isn't that every business goal?

The power of the force and the  passport.

Yeah that's exactly my point. Of course that's their goal. Would their goal be anything else in concerns to hardware? Chen saying it every time he speaks is like saying "My goal when I take a shower is to get clean." There really isn't any other goal to have with hardware, unless his goal is to shut it down.

[KNEBB]

OK, so it's a function of accounting semantics. "Revenue" from Product Sales exist, but are being offset by Expenditures (the money borrowed for device production) which allows the showing of "no profit". But that same "Revenue " could be said to be reallocated to finance the transition to Software, ( i.e. purchasing Software Companies as Business Assets). But since no significant funds remain after these Acquisitions , no "profit" is stated. But money has been made. Would that be fair to say?

Posted via CB10

[anon(9607753)]

But that's exactly what he has been doing: moving the goal post repeatedly in time and volume later and lower, respectively. He will move it again beyond September and below 3.2 Million.

Yes, and you can tell the naysayers on this forum,who are only here to ridicule BlackBerry users and supporters, are finding BlackBerry's continued survival to be extremely frustrating.

Posted via CB10

[twiggyrj]

Yes, and you can tell the naysayers on this forum,who are only here to ridicule BlackBerry users and supporters, are finding BlackBerry's continued survival to be extremely frustrating.

Posted via CB10

But you have to admit with the minimal marketing, over priced devices, potentially antagonising their faithful user base (android Priv) and the lukewarm messages from the company it does give a sense that they are not eager to grow the hardware business or staying in it.

[bhoqeem]

Chen is full of it. Wouldn't take him seriously.

[early2bed]

The actual funny thing is, what else would their goal be? To continue to lose money on it?

Actually, an alternative goal could be to invest in the hardware business at a loss in order to regain market share. Clearly he is not doing that. By focusing on profitability, he is conceding the marketshare to competitors permanently.

[anon(9721108)]

This is a good example of the parasitic and damaging nature of stock market driven capitalism. Surely the aim should be on producing to meet demand, not servicing the greed of stock market speculators. Strip off the bonuses and stock options for the 'big suits' and you'll find your costs coming down.

Exactly! And not to mention once handsets are killed off they would NEVER be back again! (reminds me of the short-sighted thinking when they killed Olds and Pontiac, now dead forever even though the economy is recovering!)

Sent from my BlackBerry 9900 using Tapatalk

[crackberry_geek]

Hello fellow crackberry users. Is there a nick name for users like "Crackberrians"? I just got my 8700g a week ago and am still making friends with it. Never had one before.

As silly as it sounds... after watching them make the same mistakes over and over and over and over again... no matter how many bloviating excuses are made for it... it's difficult to conclude anything else.

[Dunt Dunt Dunt]

Actually, an alternative goal could be to invest in the hardware business at a loss in order to regain market share. Clearly he is not doing that. By focusing on profitability, he is conceding the marketshare to competitors permanently.

If does seem that Chen was way to cautious with the PRIV. Lack of inventory lead to the launch period to still be going on almost five months later. With very, very little marketing. Plus overpricing the device didn't help. Chen was more worried about managing the loss than he was interested in investing is a success....

But I think that's because Chen isn't stupid... he knows what his limitations are with hardware. They are a reseller of hardware at this point, which just adds to the cost. They are a large company with a lot more overhead than most of these other smaller Android OEMs. I'm sure they considered dropping the price (and their profits), and probably even considered different levels of marketing... $5 Million, $25 Million, $100 Million, $300 Million. But a look at where the smartphone market is, what other OEM are releasing, how much they are struggling...

And at this point Chen is seeing that his software plan is starting to come together... throwing more money at hardware was just out of the question.

[sentimentGX4]

I have to give Blackberry credit. Every time we thought that BBRY hardware was dead, it didn't die.

This despite there having been many logical opportunities (before BB10, after Z10, after Q10, after Z3, after Passport, and now after Priv) that many other companies would have taken to ditch an unprofitable division.

I will be very impressed if the midrange Android handsets actually exist.

[cgk]

So we have two new phones with no known release date but hardware had to be profitable by Sept - so realistically three-four months of sales of new phones on limited carriers?

Best of luck with that hardware team.

[Dunt Dunt Dunt]

So we have two new phones with no known release date but hardware had to be profitable by Sept - so realistically three-four months of sales of new phones on limited carriers?

Best of luck with that hardware team.

Cutting cost, is something that Chen has been very successful with... but at this point I don't think there is much "fat" left to cut.

[kvndoom]

So we have two new phones with no known release date but hardware had to be profitable by Sept - so realistically three-four months of sales of new phones on limited carriers?

Best of luck with that hardware team.

Yeah with 5 months to go I don't see how those phones can help with the numbers, unless they release them last week.

[mister2d]

If and when Blackberry finally concedes the hardware division, they will lose 30% of their total revenue? That leaves 70% of whatever else they've got going on. You have to think there would be another precipitous drop in revenue due to confidence in the company.

They might as well stay in the hardware business and leave software alone (other than QNX). Stay in the hardware business and focus on industrial design and simplicity. Become a niche boutique of phones for consumers FIRST. Why not design something like this, but with a Blackberry focus?

[JeepBB]

Yeah with 5 months to go I don't see how those phones can help with the numbers, unless they release them last week.

I don't think they'll release them at all.

IMO, it's a bluff to keep sales going by demonstrating that BB phones have a future by promoting the possibility that there are, not one, but two successor devices to the Priv. Without this "commitment" to more phones, the already pitiful Priv sales would likely slow to a stop because few would buy a Priv (or BB10 phone) if they thought it was the end of the line device.

Talk is cheap. When either on these phones is available to buy in a shop, I'll believe it's real.