04-10-14 02:03 AM
58 123
tools
  1. sati01's Avatar
    I believe the software approach (the kind you pay fees/royalties for) is the good one not only to put a foot in various area, but mostly lock the market at your advantage.
    Microsoft announced that their IoT products will be free. I guess MS is more interested in managing the data that those devices generate in the cloud than trying to profit selling the OS. Besides, Google or others will come up with a free and open source alternative anyways. So It's better to cannibalize their own business to favor Azure than trying to get some fees and generate an opportunity for an open source product.

    Probably the best solution for cars is MirrorLink /CarPlay, your favorite platform and voice assistant integrate nicely with the car. But with MirrorLink BlackBerry can't profit from services running on top of QNX because Apple, Google and MS will take that money (Music, Movies, Search, Maps, etc.). QNX would be just an obscure piece of software that could be replaced by a free alternative anytime if BlackBerry tries to profit in a significant way from it. For example Windows Embedded Automotive is free, and Google is building their own solution, also free.
    04-09-14 11:59 AM
  2. lnichols's Avatar
    While I can definitely see value in the future, I don't believe any of these "accessories" made any profit yet.
    About costs, it's not the cost to create a product that counts (I'm pretty sure BlackBerry has some nice gadgets in the drawer already), it's operational costs, when you are a global (worldwide) company. Short story : each device sold costs before the range becomes profitable after you've sold a solid number; likely in the next generation. 1st gen rarely wins.
    Headcount, $promotion, $support ... nothing BlackBerry can do amateur, nor has in excess right now.

    Anyways, right now, they have another focus, away from the individuals : the enterprise. And I believe any penny available is yet to be invested in that direction.
    So if first gen is going to be a profit hole,isnt it better to get in now while you have some Billions, and can take the hit on your already abysmal financials? Again it will never be a good time to jump beyond phones for them, so waiting while everyone else is delivering is just going to put you further behind.

    Posted via CB10
    04-09-14 12:13 PM
  3. Superfly_FR's Avatar
    Nope, they have to wait until profitability is back, then and only then, decide where the next profit sources are.
    We're talking about 1 year delay befor they can reasonably do so, if things go pretty well in current plan execution ... making a 1yr bet in this emerging market is IMHO commit suicide for BlackBerry.
    04-09-14 12:56 PM
  4. anon(5818411)'s Avatar
    arn't they expanding to the 2 biggest things of all and is the leader of both of them? cars and enterprise?
    Superfly_FR likes this.
    04-09-14 01:04 PM
  5. RubberChicken76's Avatar
    Blackberry has no business making anything other than smartphones and it certainly isn't clear that they will continue to do that.
    To be fair, Chen is specifically breaking out BlackBerry into business lines that can be measured ... something his predecessors didn't do before

    Handheld sales
    Messaging (BBM)
    Mobile device management (BES)
    Powering other devices (QNX)

    By splitting them apart, it in theory gives the ability to course correct a little easier by focusing on specific areas of weakness, sell of or lob off pieces of the business, or emphasize investment of areas of growth.

    Against Amazon or Apple though, it's not BlackBerry's core competance for the reasons that others have pointed out as they haven't got the capital to drive other hardware initiatives and don't have the content ecosystem. Google makes money from search, Microsoft makes money from Office and Windows, Apple from high margin computers etc.
    04-09-14 01:10 PM
  6. alternator77's Avatar
    While I understand the ops concern not every bandwagon need be jumped on.
    If everyone released a smart fridge or a series of home appliances(toaster,coffer maker etc) people would just make threads about the need to secure our laundry, food etc...
    They are not Samsung Sony , google or any of these other powerhouses in tech. Even in their prime they didn't pull the kind of sales to warrant such a push. To do so now is not in their best interest.

    Posted via CB10
    Superfly_FR likes this.
    04-09-14 01:41 PM
  7. anon(5818411)'s Avatar
    As ling as they expand to being the best in car im happy.

    Posted via CB10
    04-09-14 11:39 PM
  8. Superfly_FR's Avatar
    Well, I guess this sums up pretty well what is BlackBerry vision is under Chen's governance :
    BlackBerry CEO Sets 2-Year Goal to Cut Device Reliance - Bloomberg

    BlackBerry Ltd. (BBRY)’s John Chen is giving himself two years to overhaul the smartphone maker and offset declining handset demand with sales of software that connects computers with all manner of machines, from cars to heart monitors.
    Chen, who took over as chief executive officer in November, is stepping up BlackBerry’s reliance on business customers instead of the smartphones that made the company famous. In the worst-case scenario in which he misses his goal of generating cash flow by this fiscal year, Chen said he’ll have six to eight quarters to replace declining hardware sales with higher-margin software revenue.
    “I don’t have a plan to get rid of handsets, I have a plan to not be dependent on handsets,” Chen said yesterday in an interview at Bloomberg’s headquarters in New York. “All I need to do is replace the handset revenue, and this company will be very different.”
    The shift is the key to Chen’s goal of returning the money-losing company to profit by the fiscal year that ends in March 2016. Chen is in a race against time with device sales continuing to slide -- 77 percent last quarter alone from a year earlier. His plan to create fresh revenue streams from its QNX software and BBM instant-messaging services has been welcomed by investors who’ve driven the stock up 23 percent since he took the helm after a failed sale process.

    QNX Purchase
    BlackBerry bought QNX in 2010 for $200 million from Harman International Industries Ltd. and set about building a new smartphone operating system, BlackBerry 10, on the software. It’s already widely used in cars and industrial settings like coal mines and hospitals. Now Chen wants to make it more prevalent anywhere machines need to communicate with other machines.
    “This is where the industry is going,” Chen said. “It’s all about device interaction. This is why it’s so important to be agnostic.”
    Chen said that by replacing single-digit phone margins with software margins that are routinely 70 percent to 90 percent, BlackBerry can be profitable with the same level of revenue. Chen reiterated yesterday that he expects the Waterloo, Ontario-based company to stop losing cash by the end of this fiscal year.
    The company is focused on supplying both software and hardware to customers in regulated industries such as finance, government, health care and law who need security, risk management and high productivity, Chen said. About 80 percent of BlackBerry’s installed base of smartphone customers are in a regulated industry, and an even higher percentage of customers dependent on its servers are in such a field, he said.
    Thx to Corbu for the link.
    04-10-14 02:03 AM
58 123

Similar Threads

  1. The BlackBerry Experience event - Round one in NYC
    By CrackBerry News in forum CrackBerry.com News Discussion & Contests
    Replies: 1
    Last Post: 04-15-14, 05:36 PM
  2. BRAND NEW SEALED White BlackBerry Z30
    By Fubaz in forum Buy, Sell, Trade - Sold / Archived
    Replies: 13
    Last Post: 04-11-14, 06:44 AM
  3. Google Chrome how can it work on BlackBerry 10
    By AUSTINGAD in forum More for your BlackBerry 10 Phone!
    Replies: 2
    Last Post: 04-09-14, 04:30 PM
  4. Replies: 2
    Last Post: 04-09-14, 07:37 AM
  5. Where's BlackBerry's Clever Assistant?
    By tinochiko in forum General BlackBerry News, Discussion & Rumors
    Replies: 1
    Last Post: 04-09-14, 06:30 AM
LINK TO POST COPIED TO CLIPBOARD