[YadHg]

Originally published in a Seeking Alpha update July 24 2015 11:50 ET.

Though his initial timeline suggested BlackBerry (NASDAQ:BBRY) would now be about 6 months away from seeing major traction for its turnaround efforts, John Chen now states the company is 12-18 months away.Chen nonetheless says he's "pretty satisfied" with turnaround progress to date. "I laid out the $500 million software revenue target and I'm still comfortable with that commitment for this fiscal year, it looks good ... We're patiently building the product pipeline and the sales channel."In the wake of fresh job cuts (size undisclosed), Chen also leaves the door open to BlackBerry fully exiting the smartphone market, albeit while adding "the most ideal case" is to discontinue low-end hardware and keep developing high-end devices for professionals and government workers. "Traditionally, we make four phones a year. We are not going to do that anymore. We are going to at least cut it down to a lot less number, maybe two, maybe one."BlackBerry has made new 52-week lows. Shares -34% YTD.

Posted via CB10

[Dunt Dunt Dunt]

I think in a way he has already closed the hardware business.

He has slowly shifted more and more responsibility to 3rd Party Manufactures, seems to have scaled BB10 Development way back and might even possible be switch to another OS. If the Slider and maybe one more device, doesn't sell well.... how hard would it be to shutdown what is left?

[mcstravi]

They'll be keyboard only phones by the end of the year. The classic and possibly another innovative device like passport or slider running bb10.
Everyone else wanting their BlackBerry fix will buy the BlackBerry Experience software for Android or iOS phones.

Posted via CB10

[chenageddon]

I wonder if the Slider is even coming. He said two or maybe even one so there must be a device or two on the chopping block.

[Ment]

Classic and Slider. The older version of each is the budget model for the next year. Newer more expensive Classic with upgraded internals and Slider for 2016.

[YadHg]

They'll be keyboard only phones by the end of the year. The classic and possibly another innovative device like passport or slider running bb10.
Everyone else wanting their BlackBerry fix will buy the BlackBerry Experience software for Android or iOS phones.

Posted via CB10

I tend to agree with this. The whole hub experience will be eventually an add-on for Android and IOS. Essentially that's the BlackBerry experience, and the part that we like to defend as a better experience compared to the competition.

To me, as long as I get the hub (in the event that BlackBerry simply stops producing consumer grade phones) and synchronizes flawlessly with w/e OS I have at hand at the moment , I would not have any problems.

Posted via CB10

[mfreedmn97]

Tbh id switch to an iphone today if it had BBstyle skin/os/experience. I tried using an iphone for two weeks. Couldn't stand it the way it was with having to hit the home button 500 times a day. Plus missed the hub which IMO if more people had a chance to use/understand they would NEVER go back to previous way of handling messages. I think BlackBerry ought to accelerate that app as fast as possible. Love BlackBerry phones - beat the *#* out of my Classic every day but really there is no future.

Posted via CB10

[webber27]

2 per year would be perfect.

Posted via CB10

[YadHg]

Two is more than enough. They just have to decide, definitely, on sizes. Build a keyboard and non one with decent functionalities and done. At the end of the day the hardcore (most of us) can't keep the hardware business alive. So might as well deliver a good skin BlackBerry style for Android & IOS and keep the few corporate happy.

Posted via CB10

[oneinfiniteloop]

In my opinion, future BlackBerry devices will be built around the Slider concept - it is unlikely that BlackBerry will ever make a full touch device in the future - other Chinese manufacturers may sign up to #bb10 and build low end full touch devices and may get a cut in the services revenue that BlackBerry makes off those phones.

It is very likely that BlackBerry may get into the sensor market with Samsung, LG and a number of other Chinese manufacturers in a very big way - I think that is where a lot of their energy is currently focused on.

Posted via CB10

[johnny_bravo72]

He may have intentionally sabotaged hardware division in order to justify the potential smartphone pullback.

Posted from an ME173X

[mcstravi]

..at 1.1 million phone sales in the last quarter (a percentage still old BB07 phones) and dropping I don't think there is any need to sabotage their hardware division.

Posted via CB10

[aha]

I am glad BlackBerry finally gets that after so many ****ty low specs phones that are under delivered and always leave some or a lot to be desired about. What a huge waste of time and resource... Just give us Z50 already.

[to boldly go]

Two is more than enough. They just have to decide, definitely, on sizes. Build a keyboard and non one with decent functionalities and done. At the end of the day the hardcore (most of us) can't keep the hardware business alive. So might as well deliver a good skin BlackBerry style for Android & IOS and keep the few corporate happy.

Posted via CB10

I think Blackberry's tired of this whole paradigm of having to switch out to a newer and better model every year. How tiresome for a small company thats lost money on its great UNDERPRICED devices, plus getting media -blackballed constantly, they can certainly play a different game now if they're sick of this one. Its not like they have any shortage of great choices going on.

All the 'old' BB 10s are still great devices, with huge improvements already made with the OS updates.

Its a strange mentality, if you step back to get a different perspective. Why would i want to go buy a new phone when I like the one (six) I've got? The media has us hypnotized into this way of doing phones so the phone companies and manufacturers make lotsa money.

i see no reason to upgrade my phone until i see a reason to, and i think Blackberry's pace will work just fine for me.

[lnichols]

.....
Why would i want to go buy a new phone when I like the one (six) I've got?
......
i see no reason to upgrade my phone until i see a reason to, and i think Blackberry's pace will work just fine for me.

So you see no reason to upgrade, but had to buy (six) BlackBerry devices, even though according to the rest of your logic laid out the first one should have been all you needed. You know people said the same things about BBOS back in the day to justify BlackBerry barely updating the internals on the devices. That turned out great for BlackBerry. Doing it again with BB10 will turn out awesome.

Posted via Z30

[to boldly go]

So you see no reason to upgrade, but had to buy (six) BlackBerry devices, even though according to the rest of your logic laid out the first one should have been all you needed. You know people said the same things about BBOS back in the day to justify BlackBerry barely updating the internals on the devices. That turned out great for BlackBerry. Doing it again with BB10 will turn out awesome.
Posted via Z30

I didnt have to buy them, you are mis-assuming. I buy them bc i feel like it and they are priced so cheap. I buy them bc i like them, or my Slacker download feature conflict with BB 10', or I wanted my Z30 now bc they dont make them anymore, or i wanted a Q5 bc i didnt want to pay for a Classic right now and wanted a keyboard BB10, or i wanted a spare Apollo bc its my favorite carry-phone and I wanted a spare (or a white one to go with my pink one, a girl thing maybe) or I wanted another Z10 bc i wanted a non-atnt branded version, the 9720 out of curiosity and needing OS7 for Slacker, now am waiting on a 9790 bc I know i will love it, and another Q5 bc i gave the other one away...

So I really dont NEED another BlackBerry phone for awhile now... as I said. I was being tongue-in-cheek noting that I have six as I was realizing as i started my post that it appeared I was being hypocritical because of that.

And the Bold? It didnt like the coffee bath i gave it but it still works and i want to replace it with a white one

I have never had to buy another BlackBerry bc the one i had didnt work, but because the ones i had work so nicely. Only one I'm not sure I'd recommend is the 9720. It does work and it is light as a feather and it does have a radio ... but it is kinda buggy about me and my music programs.

[Bbnivende]

I think Blackberry's tired of this whole paradigm of having to switch out to a newer and better model every year. How tiresome for a small company thats lost money on its great UNDERPRICED devices, plus getting media -blackballed constantly, they can certainly play a different game now if they're sick of this one. Its not like they have any shortage of great choices going on.

All the 'old' BB 10s are still great devices, with huge improvements already made with the OS updates.

Its a strange mentality, if you step back to get a different perspective. Why would i want to go buy a new phone when I like the one (six) I've got? The media has us hypnotized into this way of doing phones so the phone companies and manufacturers make lotsa money.

i see no reason to upgrade my phone until i see a reason to, and i think Blackberry's pace will work just fine for me.

I agree with you. I think we have reached a point in smartphone devices evolution that we could keep them for a longer duration. The problem is that the OS's are changing and they will not run on the older devices (at least not very well). BBOS is static, so unless your phone breaks you can still use it. This is why there are so many legacy devices out there.

I do sense any urgency by iPhone 5 and 5s users that I know, to upgrade to an iPhone 6. For most consumers a phone is just a phone. Phones are going off contract and people are no longer automatically upgrading if their phone is working well.

Posted via CB10

[to boldly go]

The older OS does still run fine for what it is. I now have yet one more BlackBerry I dont need, its the 9790. I wanted to try the bold keyboard without the 9900 size, and i put my downloadable Slacker subscription on it, and predictably its working alot better than the 9360 as far as getting and keeping my downloaded content.

Its new. Its white. It Just Works. Its got nicer than some headphones too. BlackBerry 10 wont let Slacker downloads work. Android Slacker is better than nothing, but will only store to device. I got 30 items including playlists, stations, and albums that would not have fit on my device on the BB10. Wasted 4gigs of data getting it but its my offline music for the month.

But you know what, the 9360 is more fun to type on.

With iphones you need the latest greatest, least thats what i hear. With BlackBerry the phone i use is the one that suits my mood for the day. . . And i may grab two, one for music only, or two, one for browsing only, or two, one's got a better camera and i'm taking pictures that day.

Or switch the sim card and just take one danged phone with me.

With BlackBerry its just a different game, different rules, different likes, different reasons, not competing with what eyephones and androids are doing is the way to go, IMNSHO.

[grahamf]

I agree with you. I think we have reached a point in smartphone devices evolution that we could keep them for a longer duration. The problem is that the OS's are changing and they will not run on the older devices (at least not very well). BBOS is static, so unless your phone breaks you can still use it. This is why there are so many legacy devices out there.
Posted via CB10

For iOS and Android that's true, but Blackberry is doing a very good job of continuously optimizing their OS. BB10 runs better than ever, even on the original Z10. When your focus isn't on gaming and high end graphics, the devices last really well.

[anon(8982767)]

It's good that blackberry is cutting down to two devices a year there should be one full touch screen one and a keyboard one with awesome specs and a smoother is because now that they are focused on 2 devices they can make these phones great

[DamianWarS]

The Business world is pragmatic. Having a device that is outdated every 12 months is not very pragmatic.

2 devices a year can play well with the business market. Since contracts are usually every 2 years blackberry could stagger their phones with year-1: high end pkb low, low end all touch. Year-2: low end pkb, high end all touch. This way they can offer a high end every year and updated every 2 years.

Posted via CB10

[Sulaco757]

I agree with you. I think we have reached a point in smartphone devices evolution that we could keep them for a longer duration. The problem is that the OS's are changing and they will not run on the older devices (at least not very well). BBOS is static, so unless your phone breaks you can still use it. This is why there are so many legacy devices out there.

I do sense any urgency by iPhone 5 and 5s users that I know, to upgrade to an iPhone 6. For most consumers a phone is just a phone. Phones are going off contract and people are no longer automatically upgrading if their phone is working well.

Posted via CB10

Refreshing that more people are seeing this as well. I went into a AT&T corportate store to check out the Classic. I had an interesting conversation with one of the reps as she was the BlackBerry specialist and carried a Z10. She explained that more of the customers she sells to are asking for phones that will last 5 years, like they remember from BlackBerry or their Motorola Razrs. She mentioned many seem fatigued of having to upgrade because of buggy/unsupported devices.

It happened to me. Was tired of staying in the upgrade race. I used a bold 9900 for a while, and still have that phone as a backup. Liked it so much I bought a used Q10 and really enjoy the BB10 experience. My phone is over 2 years old and works better than when it was released. Want me to upgrade? Entice me, don't force me with an artificially crappy user experience.

BlackBerry will be just fine with 2 phones a year. Apple has proven that if done right, just one phone release a year can be profitable.

 Q10 on 10.3.2.858 

[Dunt Dunt Dunt]

For iOS and Android that's true, but Blackberry is doing a very good job of continuously optimizing their OS. BB10 runs better than ever, even on the original Z10. When your focus isn't on gaming and high end graphics, the devices last really well.

They aren't too focused on updating the Android Runtime either.... I've seen a few post here where people are finding apps that will only run on 4.4 and above. Fortunately Android by it's nature is very fragmented and any developer that doesn't at least allow legacy version for the past couple of years is going to lose out on some business. But then there are features in 4.4 that make it better for developers....

I agree that hardware has reached a point where a good quality flagship device today should last a fewer years barring some technology breakthrough. The software has to keep up... as many of us PlayBook owners are well aware.