Chen tells NYT, Phones Might not be a Major Part of BlackBerry�s Future
http://bits.blogs.nytimes.com/2014/0...e-than-phones/
“Apple has to sell 58 million phones to get, I’d guess, a 10 to 12 percent margin,” said Mr. Chen. “If you’re not first or second in phone sales, where do you get any margin? You could sell 30 million phones and lose money. I have to be realistic here.”
Chen tells NYT, Phones Might not be a Major Part of BlackBerry�s Future
Originally Posted by
David Murray1 I refuse to believe that you need to sell at least 30 million phones to make a 'margin' ... this just makes no sense to me. Whatever happened to firms producing up to the point where MR = MC?
You're forgetting about the costs that are not marginal. Like developing and maintaining a bespoke operating system, for example. Or even just designing, developing and marketing a new model.
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