Podcast 094: Q1 F2014 Results Special Edition!!

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By Simon Sage on 28 Jun 2013 05:37 pm EDT

It's time to sit down for a drink with Kevin, the two Chrises and I to figure out what happened last quarter with BlackBerry and how we can kick ass next quarter. After taking some time to soak it all in, our financial expert Chris Umiastowski runs through how he saw the rough quarterly results.

There were a lot of issues to chew through, such as one more BlackBerry 7 device to hit the market, and axing BlackBerry 10 development for the PlayBook. We also touch on BBM going cross-platform, but beyond that we look at the international Q5 launch, especially in light of the quarterly results, BlackBerry's marketing, and how carriers deal with OS updates

For such a dramatic day, we keep it surprisingly loose and easy. We're cool cats like that. Listen in, download, and let us know your thoughts about this hectic day in CrackBerry Nation. 

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Reader comments Podcast 094: Q1 F2014 Results Special Edition!!



All the marketing and Fanfare and 2.7 million units shipped?

Amazing how they went from the top to the cellar in 5 yrs!

What a coincidence, 2007 iPhone release was the beginning of the end!




Blame your friends for not installing the leak. They have the OS available to them so they shouldn't complain and neither should you. Your friends are dumb. And learn how to type properly, not with all caps.

Posted via CB10

look my "friend", some people don't trust those leaks, why they have to? the official 10.1 on AT&T should of been out long time ago. My friends are smarter than you, at least they are not rude and they don't call other people dumb for no reason.

I agree not everyone is willing to install a leak OS update. I rather just wait to install the official update when it eventually comes out.

Posted via CB10


British Grand Prix anyone?

Both BlackBerry/Mercedes are on the front row for tomorrow's F1 race!

Posted via CB10

It definitely was a vrappy day in the land of Crackberry.

One of the things that stood out in the podcast was the talk about "build what customers want".

I for one was really hyping up switching to BlackBerry but I just couldn't bring myself to the point of doing it. The Q10 is what caught my eye with the tried-tested-true physical QWERTY, even with the loss of the trackpad. The downside to this device though (for me) is screen size.

Three inches is just too small, they should have bumped it up an inch and have a large screen with physical keyboard. I really hope something is coming down the pipes to offer the best of both worlds but personally, I hope it's not a slider. Give me the Q10 form factor with a larger/taller screen, add in a larger battery and you got a bread winner device!

You guys are awesome. It's too bad that you guys arent running the show at BB, specifically the marketing department.

The ads they have now should be a federal offense and result in prison time. It's such a shame. The z10 is an amazing phone and far better than the iphone. They don't know how to market effectively.

Posted via CB10

yep...frank boulben HAS to be the most pathetic marketing person ever...I've said it since OCTOBER ' he shows up to work each day and DOESN'T jump off a bridge some where I'll never know

Posted via CB10

Cannot believe they actually went along with the worst case scenario and axed BB10 for PlayBook!

So much for customer relations! 2.3 million PlayBooks sold! That's a lot of pissed off blackberry customers!

Posted via CB10

I understand they can't put BB10 on the playbook because of its 1GB of memory. But they still could work on updating some of features like it's browser, BBW, android runtime 4.2.2, keyboard and etc to make it more resemble BB 10.

Posted via CB10

You lose when you sell but yeah... not averaging down this time. Will sell in Dec for tax purposes... a nice offset for the gains made in stocks listed by actual going concerns.

Posted via CB10

Sad day dude........

I'm far from a business person, I can only look at it from a consumer point of view.

But my gard the marketing must have something to do with it.

I can only describe it as shocking!

Posted via CB10

Yes their marketing sucks! Those keep moving commercials are useless. And of course the U.S carriers are definitely not helping by the way their promoting the BB 10 products.

Posted via CB10

I disagree with that needs way more time.

BlackBerry are moving too slow marketing is poor the phone has been out in the UK since January and people still ask me what phone I'm using!

Posted via CB10

I also have to disagree with letting Heins go. However, especially the BB10 cancelation sucks big time. They at least could've communicated it in a very different way. Not as a sidenote on earnings call.

Posted via the awesome Blackberry Q10

I agree. BlackBerry should have made a separate announcement on the PlayBook as soon as they knew they would not or could not put BB10 on it. They should have explained in detail the reasons why and they should have apologised. This would have made all the difference.

I have said it before, blackberry has to market to high school kids. Make BlackBerry the "cool" phone and win customers for life. Most adults with iphones are convinced BlackBerry's are not on par with Apple products and won't give any BlackBerry a chance no matter how good it is and no matter how miniscule the apple upgrade is. You want hyper connected? Teenagers are the group your want to market to.

Posted via CB10

Yes, totally agree with you. People are so hung up on how BlackBerry was that they won't give them another chance. Teenagers & young adults didn't have to go through the lame years and can learn to love BB10. But you have to market it or forget it.

Posted via CB10

Agreed, if kids don't think it's cool neither will the parents. The A10 better have some hooker boots, red lipstick and class leading specs to get some heads turned or it will run the same fate as the z10. I went into phone kiosk to get a new 9900 keyboard and asked how the z10 was doing, the guy said it was selling ok and was a good attempt but for the price, its hard to recommend to anyone but a blackberry user. Truth hurts, but at least he was honest.

The titanic sunk. Things don't look much better for bbry. In my opinion, the iceberg they hit was called "Storm" it happened years ago, and they never have recovered. BB10 is great, but it appears as though it may be to little to late.

I agree I think BB10 is a little too late to the game. And definitely their marketing is not helping the situation!

Posted via CB10

You don't win customers by making promises and failing to deliver time and time again.

They are a disgrace.

They have deceived the public for the purpose of clearing the stock of PlayBook's.

Posted via CB10

This makes them look really bad. Like the old BlackBerry under the old management. How many times can you burn your customer with false time lines, delays, and broken promises.

Posted via CB10

Hi Kevin, I thought I was a stubborn BlackBerry guy. Listening to the issues regarding email, it took me 2 days to set up my Gmail on my Z10 because I have 2-step authentication setup. Even BlackBerry UK couldn't help me sort it, it was thanks to CrackBerry that I found I had to generate an application specific password via Google.

Also, we DO NOT need a new BB7 device in 2013 and Thorsten should NEVER have mentioned it on an earnings call.

Posted from The Force wielding tap-dancing mouse on secret pantless missions ;)

95% of the worlds smartphones have virtual keyboards. How are physical keyboard BB10 devices going to save BBRY. Get real. I cant believe we actually thought things would improve.

It's not the keyboard version that's not selling well, it will be what saves blackberry in the near term until the full touch versions can penetrate the market

Posted via CB10

Blaze has the right idea for the American market. Americans are super social people and function on status symbols. BlackBerry need to play to this notion. We like the exclusively and the wow factor to show off to others. As long a BlackBerry 10 doesn't have or so a wow factor the American blackberry market share will continue to die. Come on BlackBerry show the USA something big, new, unique and exciting that no other phone can do!

Posted via CB10

Very interesting in a new bb7 device that might satisfy the remaining $72 Million BlackBerry7 users!!!

Posted via CB10

Love my Z10, but looks like it's soon time to move to a Windows Phone. A company that understands integration between devices. Not to mention getting tired of BlackBerry Link crashing Windows.

Posted via CB10

I came from a Lumia. It's a good solid phone but a bit boring and after using bb10 I can't go back to windows phone. Worst notification center wp has and the colors get annoying as fellow business associates see it and think you are immature. Just my opinion.

Posted via Q10 using CB10

A note on Whatsapp! I hate giving someone my phone number! I rather give them my PIN! If I wanted you to call me and spam me then I would give you my number!

Posted via Q10 using CB10

Only the following words will save Blackberry. The good news is they WILL save Blackberry:

With OS10.X Blackberrys will run Android Apps directly from Google play.

Now that the app problem is solved lets talk about hub, peak and flow, our keyboard and Blackberry balance.

If these words don't come it's over, if they come they have a chance. BB could be one of the largest Android phone makers. Come on Blackberry do it!

chris was right.. it seems as if blackberry is up to it's old rim tricks that got them into trouble..

i don't get how there were so many delays to make the best blackberry 10 experience and have so many bugs.. the os needs major work with some good beta testers..

announcing a new bb7 device shows that blackberry has no faith in bb10.

Every CrackBerry podcast is a special edition since they don't happen regularly. I wish you guys would get together the way the Android Central guys do.

It's really disturbing how people still make excuses for a company that has been promising stuff since god knows when. WHY, again WHY are you making excuses, im tired of making and defending BBRY to all my co-workers and friends. It's getting to the point where I just want to go to the George Washington Bridge here in NYC and throw my BBZ10 and never look back. I just cant do it anymore, I have been defending BBRY since iPhone1 was released and they are still behind. I'M TIRED. I have been using a BB since the 8100(Pearl), 8310, 8800, 8900, 9700, 9780, 9900, and finally and might be my last BB device Z10.

To be a shareholder which I am, it's a very sad day. Thank you BBRY but today just might be the day I finally put you to rest. Good night, Good luck and God Bless.

In my opinion the market reaction today is a severe over reaction and is not going to last. Their underlying financial state remains stronger than anyone would have thought a year ago. A lot of people who feel severely burned today seem to have had the impression that BlackBerry could take over the world in half a year, which was never going to happen. You can't claim to be long BlackBerry and then treat one quarter as the end. BlackBerry retains much of its traditional market (business, law, government etc).

Posted via CB10

Never, ever, ever marry a stock. Doesn't matter what stock it is. Your utility company won't give you free electricity if you tell them a story about how you bought your most favorite-eVAR stock and it went down. All that matters in terms of your portfolio is being on the right side of the trade.

Guys, it's time to face facts on the chances for OS10 ti succeed.

Compare that with the Windows Phone scenario. The entire might of Microsoft and Nokia just barely made it and managed for that OS to gain a little bit market share. What chances does a small'ish company like BB have compared to that?

Also, much of the recent "success" of Windows Phone is due to Nokia pushing down the price points and competing successfully against low end Android devices.

I live in the Middle East, traditionally none of the strongest regions for BB and I hardly see anyone picking up a new device. The price is the issue for end consumers. At the moment the Q10 is priced above an iPhone or Galaxy S4 whole the Z10s price is tumbling like crazy. You can pick up a 2 months old 2nd hand device for less than half it's new price. That tells you all about the popularity...unfortunately.


Posted via CB10

Blackberry ius focusing alot in the rest of the world and alot is not being focused here in the US. Marketing is available what is not being shown is how blackberry out shines from the rest. They need to compare their product to what they are competing against. if you talk to anyoine that doens't follow BB news they will tell you that they want the S4 or the HTC One. Why? Because Android is familiar and all they have to worry about is specs. Most 18-24 year olds I would say don't care about blackberry because of their old products and even though they have changed they wont give it a chance because what the other brands are marketing is their specifications. In order to ompete BB needs to focus on their marketing just like Microsoft has showing them that one hardware is not the biggest thing now but the fact that it's simple to use. Show them hey this is the down side of android how do you like this? look how you can view an email compared to android look how you can do to things withought the app refreshing look hey i can side load android apps...... I dont see those commercials. Also what the hell is up with the demo units and not allowing you to play with the actual OS shoot i can see the same functionalities of what the device is showing me online i want to play with the dam thing. Also I went to the Radio shack inWestfield Mall Sarasota Florida and they didn't even have the Phone in stock ask them why? Dummies on the counters without anything to play with really? ugh just disgusting. add more youtube commercials get that ad space. What the marketing looks like now is blackberry saying is better than blackberry... It needs to say Blackberry better than android and IOS cause it is. This Aristo device needs to carry the specs and it needs to get a major OS update this 10.1 isn't enough more camera features more more more. those high review sites like CNET send them an updated OS to have them Re review it so it gains exposure. even with this 10.1 i not people are not going to be aware.

Kevin you really rock. You did warn Crackberry nations of not so great results. Appreciate your kind gesture my friend! Many Thanks!

About a $7200 loss today...I was hoping get to my $26 asp before selling...about $27000 loss so far. No more averaging down on this pathetic attempt at a comeback. Could have bought a new car!

Im happy with my Z10 purchase.

Its hard to see the future with blackberry. I think I expect and want things to move so much faster then they can deliver.

By the time the next google nexus phone comes out I shur hope they have a product to keep me interested because I've been itching to dive into the full google experience.

Thanks for the recap. Have been so busy that I could not have read and listened to much else. You all are awesome, Please don't use google hangout again....

This was my first podcast! I loved it. I really do want blackberry to do well, I am enjoying my z10 with the 10.1 which is so much better than the 10. Ok, was it me? Or did I have a really STRONG Long Island Iced Tea?? I heard birds in the background! LOL

" and how we can kick ass next quarter"

Customer's ass, I suppose. PB owners asses still hurt.

And BBRY Shares down 24%. Sorry Thorsten Heins, you need to go...

BB need to start listening to its customers.

All I can say is I'm not a sheep I recently bought a brand new VW golf two weeks ago the salesman was talking me through all the gadgets which there are many then he said you can connect your I phone via bluetooth or use the cable provided, now I'm looking at him straight in the eyes I don't have a I phone I've got a blackberry Z10 I'm not a sheep with that he backed of slightly I mean what has the I phone inproved on not a lot love my BlackBerry top of the line Z10...long live blackberry for those who are not sheep....

Posted via CB10

I stepped back yesterday. Need some fresh air and time before any (further) reactions.
After I hear you guys, here are my thoughts.

- Transition takes time ... and is barely ever on time. What I've called "passing point" numerous times has been missed on this E.R. Not missed much (if you rely on T.H "pseudo-guidance") but missed. Period.
- Kevin, you pointed out : yes, marketing is not explosive, yes it must be localized (Bla1ze on U.S) but the whole organization has been set and levered worldwide. This is kind of huge achievement. There's a mandatory step forward to be done now; let's see what part of "massive investment" will be done in that direction. -> "Now show the money and make it shine".
- As Chris mentioned, the take-off is (too) slow and under expectations (street and, I believe, BB Board) yet. Sales growth are rising everywhere (1M on a single month V.S 2.7 million a quarter). This is also a positive sign. Bad devices won't perform like that. I believe EMEA penetration (while crisis is all over us) should be considered as a great performance.
- I've been using the Q5 for a few hours and I confirm Simon's testimony. It's a real BB10 phone with performances matching (just my feelings) Q10. I must say I do feel it closer to BB DNA than his big brother. Kids ("not a low cost phone, something to be proud of") and enterprises ("affordable for fleets where Q10 has nowhere a chance") will love it.
- Q10 Glitches : ok with you all. There a few, but unforgivable ones when it's about anything mails/contacts/agenda.
- New BB7 ? I personally don't get it. But it might be country/area specific ... whatever.

Now some personal points of view
- PlayBook announcement is the weirdest thing I'd think we'd hear during E.R. What a fault !
Instead, we've should have heard (pre-) E.R about the M2M (Machine to Machine) capabilities of BB10.
Future of the PlayBook ? I would have loved to hear : "we'll get bridge fixed and by the end of the summer, you will enjour your BB10 device power on the screen of your PB, cordless". 10.2 is st for that (wireless HDMI). Kevin, did I felt some kind of "shit, can't comment on this" when you talked about PB ?

- Penetration
By no means I'd like to see a discount program with "premium" devices. Don't ruin the brand, do not exasperate the early adopters who paid full price. But I don't understand why - besides the enterprises incentives - there's not a *massive* trade program for BB7 users. Easy to set, really affordable, reduces the constraint of carriers renews program duration (and make them happy to grab some $$ in the same time) ...

Have a nice weekend folks, tomorrow's just another day ;) Let's keep moving !

The very first comment I have is "Where is Sprint?" We have been practically pleading with them for answers. I have made it known to customer support that I am a BlackBerry shareholder and it has no impact on their "Super Secret" introduction date. That does not imply good carrier relations, of course I don't know if it is on Sprint or BlackBerry's' part but it is stifling sales. My 9650 works great but is pretty long in the tooth.
Proudly posted from my PlayBook

One day later and I hope everyone has settled down now. Everyone should stop and think about what BB has accomplished over the last quarter and what still lay ahead. Thorsten is managing the balance sheet conservatively, and so he should. This enables planning and budgeting within available cash flow and cash on hand without leveraging the balance sheet and endangering the company. I am confident many more milestones will be achieved over the next 3 quarters along the way to realize the vision that management and the board have for Blackberry and that is being positioned for growth as a critical player in the next big things: secure mobile computing, MDM, M2M, and the software, analytics and services opportunities in the internet of everything, for both enterprise and consumers. M2M by itself is estimated to be worth over a $ trillion dollars over the next decade.

Regarding the trading in Blackberry shares, it is easy to see the emotions of the ups and downs correlate to the number of positive and negative opinions on Blackberry the company itself, on Crackberry and many other forums. The responses would have been no less emotional if Blackberry has beaten expectations and the share price went up by $4/share. It is these emotional swings that create opportunities in the market as a whole as investors and traders make irrational decisions no matter which side of the trade they are on. Considering the volume of trading yesterday, no doubt many of the short sellers have covered. Now that Thorsten has demonstrated his abilities and as visibility on Blackberry becomes more clear going forward, I expect a significant number of the longer term short sellers will go long over the next few quarters. As for the traders both long and short, they really don't care about the company as they just want to make a quick buck and move on to the next trade, Blackberry or any other company with lots of, for investors and Blackberry bulls, have some patience and hang in there as Blackberry has a great future.

That literally has been the best podcast... EVER! Bla1ze: you were in rare form sir, you need to stay that way!!! Sure ya seemed high or crunked... but dammit did you bring that infamous Bla1ze type perspective in the most amazing way!

We are talking about a phone right.....i'm seeing posts in all caps, and people embarrassed that they told their friends to buy the device and people who feel tricked.....did I miss something....this is not a major life decision we are talking about. if you're friends are judging you over a smartphone choice, then you guys must have life figured out. Not sure I put that much effort into emails over mortgage rates with my broker......

Posted via CB10

A few points on what BBRY should do NOW:

1) Pricing Policy: BB management is an IDIOT to price their phones at the top end of the range ESPECIALLY when the newer android phones from Samsung and HTC are far more powerful processor, screen size resolution and battery wise. Also MOST IMPORTANTLY BB10 still lacks a lot of commonly used apps. I am totally with the BB management in terms of as its a new platform it lacks apps and we are growing in number of apps. So all these are very logical and important reason why the pricing for ESPECIALLY the Z10 and Q5 should have been slightly lower for US, CANADA and UK and a lot lot lower in markets like India, Africa, Middle East and Latin America.
If I were Heins I would have wanted more VOLUMES irrespective of the hardware margins at this juncture. With competitive pricing of my hardware I could have had more hands using my superb OS BB10 and also that would have lured many app developers and someone like Google to make native BB10 apps. But thanks to BB management they screwed this opportunity.

2) DELAY EXECUTION: BB has now been an expert at product launch delays. Why the HELL did you announce the opening up of BBM to Android and IOS so long ago when you are still going to wait for one more month to release it. Why the HELL are you giving such a lot of time to Watsapp and Vibers of the world to improve their apps?? Totally fail to understand this logic.

3) Horrible Marketing and Waste of Marketing Dollars: The superbowl ad was the MOST pathetic one I had ever seen. You fools when the world does not know what BB10 is and how it looks why do you show what it can't do. You guys should have simply shown what it does Hub, Peek and Flow that would have atleast given a feel of how better BB10 is and what we can expect from it. Many corporates would have also seen the same and would have loved it. What has been the logic of Hiring Alicia Keys? Dude you could have spent that access in newspaper ads, TV Commercials. In my opinion the keep moving project concert etc is rubbish. The only thing I loved was the partnership with Mercedes and announcement of scholarship for women. May be more scholarships and more money should have been spent to give away to app developers. That would have added a lot more value.

Hope they improve themselves and deliver better value for money. Unfortunately I just came to know that Q5 has been offered at $400 its WAY TO HIGH FOR A CHEAP 5 MP, 1.2 GHz and cheap Plastic phone. It should have been $300-$350 MAX! I don't care if they sacrifice a bit of margins they should rather focus on improving the manufacturing and component costs. Samsungs and NOW even many Indian companies like Micromax, Karbonn These companies are making phones which are of Z10 Quality and Specifications and run on Android 4.1-4.2 and are priced at $250-$300. We must not forget expect for developed countries where BB does only 30-40% of business in terms of revenue the phones sold elsewhere are NOT SUBSIDIZED. So pricing becomes very important.

Parthiv Shah
M.S. in Telecommunications
University of Maryland, College Park
Batch : 2008

Sad day for the Blackberry Community but I will continue to support and believe that Blackberry can pass this hurdle.