1. Maxxxpower's Avatar
    "As at the end of the second quarter of fiscal 2016, the Company had a user base of approximately 30 million."

    "The Company recognized revenue related to approximately 0.8 million BlackBerry handheld devices in the second quarter of fiscal 2016,
    compared to approximately 2.1 million BlackBerry handheld devices in the second quarter of fiscal 2015. Approximately 85% of the devices recognized in the second quarter of fiscal 2016 were BlackBerry 10 devices."

    "During the second quarter of fiscal 2016, approximately 1.1 million BlackBerry smartphones were sold through to end customers, which included shipments made and recognized prior to the second quarter of fiscal 2016 and which reduced the Companys inventory in the channel."

    http://uk.blackberry.com/content/dam...nformation.pdf
    09-26-15 04:53 AM
  2. silversmith75's Avatar
    So what are you saying

    Posted via CB10
    Last edited by silversmith75; 10-04-15 at 12:18 PM.
    09-26-15 07:59 AM
  3. kbz1960's Avatar
    That they have been steadily losing customers.
    09-26-15 08:07 AM
  4. silversmith75's Avatar
    That's not hard to understand simply there has really been no alternative phone to buy. Most want a high end all touch. BlackBerry has never delivered people go else where.

    Posted via CB10
    Last edited by silversmith75; 10-01-15 at 03:44 PM.
    Bbnivende likes this.
    10-01-15 10:05 AM
  5. ohaiguise's Avatar
    I refuse to believe that you can only be profitable if you sell 10 million units a year.

    It just can't be that black and white.
    10-01-15 10:36 AM
  6. silversmith75's Avatar
    What baffles my mind it's that Chen said they need to sell What ever it was 1 million units to be profitable. And yet never release a phone anybody wants. They sold more z line phones. Than any of the other phones.

    Posted via CB10
    10-01-15 03:49 PM
  7. TGR1's Avatar
    I refuse to believe that you can only be profitable if you sell 10 million units a year.

    It just can't be that black and white.
    Need more info such as cost to run the company, such as if they makes 1$ profit per phone and it costs $11 million a year to keep the company going.

    I assume John Chen saw the books and didn't just make up that number.
    10-01-15 08:02 PM
  8. Troy Tiscareno's Avatar
    I refuse to believe that you can only be profitable if you sell 10 million units a year.

    It just can't be that black and white.
    Why is it hard to believe? The costs of maintaining your own OS are huge, plus the R&D, design, and manufacturing costs of the devices, distribution, marketing (yes, they do it, even though it isn't consumer-level marketing), etc. All of those costs count against the handset division's profits. One analyst recently estimated that BB loses $100 per phone sold because their volume is so low. Many of those are fixed costs, so if volume is high enough, the cost per phone goes way down, but when you're selling 800K per quarter (only 680k being BB10), there aren't nearly enough phones to spread that cost over to get those fixed costs per phone down to a reasonable level.
    10-01-15 08:22 PM
  9. curves2000's Avatar
    What I keep having issues with is the ASP or average selling price. This past quarter it was $240 I believe. For how many quarters in a row it's been $180-240 range but the majority of the devices are BB10.

    If we know that devices such as Z3 and Leap aren't selling in large volumes ie: lower ASP handsets it would appear that the Classic, Passport etc are the big drivers here. Those devices are higher ASP's but it isn't being reflected in the ASP for Blackberry.

    I am aware that Blackberry doesn't sell the phone to carriers and retailers at their devices selling price, but it must be higher than $240 or so?

    Anybody able to explain this really low ASP?

    Thanks!

    Posted via CB10
    10-01-15 09:02 PM
  10. Troy Tiscareno's Avatar
    I would imagine that something like the Passport would sell (to distributors, who then sell to carriers/retailers, who then sell to end-users) at $299 or so. Classic perhaps $279. Leap $159-179.

    But they are also still selling off their remaining stocks of older phones, including BBOS phones, Z10s, Q10s, Q5s, Z30s, Z3s. The wholesale price of any of those is going to be low at this point - sub $200 for sure and probably closer to $100 (old BBOS for much less).

    That's part of the problem - over-production and low demand means you can't clear out the sales channels of old product fast enough that those old products drain sales of new products.

    Think about the Z30 - it's 2 years old, and was last produced more than 2 years ago (production ended Sept 2013). It is still being sold today, off that initial production run, which means that many potential buyers of the Leap are (wisely) buying the Z30 instead, which hurts sales of the new, full-priced Leap). BB has been in reduced production for over a year, and they're still selling off old stock, because it had always been BB practice to stuff sales channels full of phones, which looked great for sales, but often ended up in write-downs and firesales of old models 2 years down the road - or 3-4 year old phones still being for sale.

    It's not hard to figure out why the ASP is where it is...
    greenberry666 and curves2000 like this.
    10-02-15 12:16 PM

Similar Threads

  1. Blackberry I'd login after security wipe
    By SamirM16 in forum BlackBerry 10 OS
    Replies: 11
    Last Post: 07-16-17, 08:59 AM
  2. Replies: 5
    Last Post: 10-15-15, 04:15 AM
  3. How can I set up blackberry/android/google login?
    By will308 in forum BlackBerry Priv
    Replies: 15
    Last Post: 09-28-15, 09:50 AM
  4. BlackBerry Priv Website a joke??
    By paul360 in forum BlackBerry Priv
    Replies: 13
    Last Post: 09-26-15, 11:48 AM
  5. why embed video are not playing on blackberry z10
    By stas in forum Ask a Question
    Replies: 1
    Last Post: 09-26-15, 12:09 AM
LINK TO POST COPIED TO CLIPBOARD