1. majinvegitto's Avatar
    Ok so according to Chen, in order for hardware to survive it needs to be profitable. The revenue was 424m and 14m in income. The breakdown is 39% software and services, 25% service access fees, 36% mobility solutions.

    This breaks out to:

    165m software and services
    106m saf
    153m mobility solutions

    Now of course they changed the categories since the last time, but my guess is that the first two categories are high margin and are profitable, while mobility solutions is losing money. The question is how much is it losing and if they are sticking with two more phone releases is it really that far from being profitable or are they just keeping hardware afloat for the government clients. Are there many expenses related to the 100m in saf revenue? If not, that would be a huge chunk of profit that is being eaten away by the hardware division. Anyway just something I had thoughts on and wanted to see what people here thought.

    (It's crazy to see how things have changed since 2010. I work at a medium size accounting firm that was 100% BB as late as 2010. They opened it up for users to choose their own phone on the company plan (users would pay the difference between the chosen phone and a BB). Now its pretty much 100% Android/Apple.)
    06-29-16 08:37 PM
  2. Sairos's Avatar
    They need to sell 3 million units or less in order to be profitable in hardware.
    06-29-16 09:02 PM
  3. early2bed's Avatar
    Chen said that they are pretty much a smartphone design house - and by design he means mostly software. That means putting a BlackBerry label on someone else's smartphone and preinstalling software. That's barely being in the hardware business.
    JeepBB, cribble2k and bakron1 like this.
    06-29-16 10:09 PM
  4. Prem WatsApp's Avatar
    Chen said that they are pretty much a smartphone design house - and by design he means mostly software. That means putting a BlackBerry label on someone else's smartphone and preinstalling software. That's barely being in the hardware business.
    Software... like Jolla. Yes, they're kinda also in the HW business, but hey, it's rather the software I'm after, not the "other half"... :-)

      There's a Crack in the Berry right now...  
    Jack Chin likes this.
    06-29-16 10:24 PM
  5. majinvegitto's Avatar
    They need to sell 3 million units or less in order to be profitable in hardware.
    I think you meant, "3 million or more" but of course ASP will factor into the exact total. But assuming ASP is relatively the same each quarter they need to increase from 500k to 750k per quarter or about a 50% increase. Hmm that seems pretty tough to achieve in just 3 more quarters. If they need to keep the phones going to keep their business customers happy, I don't really understand the switch to Android. Would make more sense to stick with the BB10 phones and just jack up the price and be a niche government and regulated industry phone maker. Are they still manufacturing BB10 devices for those types of clients? Or would be reasonable for them to expect their government clients to switch to Android and specifically to the BB flavor of Andriod. The strategy that is being implemented is sort of confusing.
    06-30-16 09:05 PM
  6. Sairos's Avatar
    I think you meant, "3 million or more" but of course ASP will factor into the exact total. But assuming ASP is relatively the same each quarter they need to increase from 500k to 750k per quarter or about a 50% increase. Hmm that seems pretty tough to achieve in just 3 more quarters. If they need to keep the phones going to keep their business customers happy, I don't really understand the switch to Android. Would make more sense to stick with the BB10 phones and just jack up the price and be a niche government and regulated industry phone maker. Are they still manufacturing BB10 devices for those types of clients? Or would be reasonable for them to expect their government clients to switch to Android and specifically to the BB flavor of Andriod. The strategy that is being implemented is sort of confusing.
    No, I meant 3 mil or less.. he said so himself.. He can't serve Governments and corporations only.. They don't buy 3 mil devices.. The only way to reach profitability in hardware is by selling millions of units.. and you can only get there by selling to consumers.. BlackBerry started selling to such a niche market in the beginning but it was growing rapidly.. Nowadays even Govs and Corporations have Android and iPhone..

    Obama himself dumped BlackBerry and reportedly he has a Samsung that's made specially for him.. So even nowadays you don't need a BlackBerry to be secure.. and that doesn't sell anyway.. Even if he can guarantee security better than anyone.. People loved BlackBerry because it was Business-Savy.. Not because of the security.. Now keyboards are out of fashion and even Business savvy people want Apps.. So the only way is Android.

    They're not producing BB10 phones anymore, but they're still serving a lot of Govs & corporations.. The key now is to make them Move to Android BlackBerry devices.. So he is hitting two birds with one stone.. Secured Android with all the perks for Govs & Corporations.. and for consumers too.. Thing is, he priced it too high with the Priv.. And people don't care that much about keyboards anymore.. That's why he is going mid-range with a full touchscreen and another device with a PKB to keep the fans happy.. Lots of BlackBerry diehards are into Keyboards.
    06-30-16 10:51 PM
  7. TgeekB's Avatar
    I think you meant, "3 million or more" but of course ASP will factor into the exact total. But assuming ASP is relatively the same each quarter they need to increase from 500k to 750k per quarter or about a 50% increase. Hmm that seems pretty tough to achieve in just 3 more quarters. If they need to keep the phones going to keep their business customers happy, I don't really understand the switch to Android. Would make more sense to stick with the BB10 phones and just jack up the price and be a niche government and regulated industry phone maker. Are they still manufacturing BB10 devices for those types of clients? Or would be reasonable for them to expect their government clients to switch to Android and specifically to the BB flavor of Andriod. The strategy that is being implemented is sort of confusing.
    The government will not purchase 3 million phones per year and they certainly will not purchase expensive ones who's price has been "jacked up".
    07-01-16 05:56 AM
  8. bakron1's Avatar
    The government will not purchase 3 million phones per year and they certainly will not purchase expensive ones who's price has been "jacked up".
    This is very true, the days of just making large purchases and paying for overpriced products are over. Most companies and purchasing agents are looking at any new purchases to be "value added" and being able to have support long into the future.

    Thus meaning the companies that supply those products have to have the financial and human resources to support those products long term.

    Blackberry does not have the brand image they once possessed and are being cast aside for companies like Apple and Samsung who have the market share and long term support most Fortune 500 and small businesses are looking for.
    TgeekB likes this.
    07-01-16 06:23 AM
  9. Bbnivende's Avatar
    I think you meant, "3 million or more" but of course ASP will factor into the exact total. But assuming ASP is relatively the same each quarter they need to increase from 500k to 750k per quarter or about a 50% increase. Hmm that seems pretty tough to achieve in just 3 more quarters. If they need to keep the phones going to keep their business customers happy, I don't really understand the switch to Android. Would make more sense to stick with the BB10 phones and just jack up the price and be a niche government and regulated industry phone maker. Are they still manufacturing BB10 devices for those types of clients? Or would be reasonable for them to expect their government clients to switch to Android and specifically to the BB flavor of Andriod. The strategy that is being implemented is sort of confusing.
    We do not know the sales breakdown between consumers and enterprise. I bet that enterprise sales are just a trickle.

    Posted via CB10
    07-01-16 08:57 AM
  10. ohaiguise's Avatar
    The Chairman has (unilaterally, since he does everything himself) declared that BB hardware will become profitable by re-branding cheap Android devices as 'BlackBerry' and getting someone else to sell them.

    Have faith in the Chairman and his plan.
    07-01-16 03:08 PM

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