Here’s what matters from the BlackBerry Q4 financial results conference call

By Chris Umiastowski on 28 Mar 2014 02:49 pm EDT

This morning BlackBerry published Q4 results for fiscal 2014 and held the usual analyst conference call. I’ll go through the results here, and I’d like to invite you to post your comments below.

First of all, John Chen did a great job of communicating on the call. I really like this guy as the CEO. When he speaks it’s obvious that he understands the issues that are bothering shareholders. He doesn’t dance around issues. He doesn’t duck questions. In fact he brings up most of the big issues as part of his prepared remarks. I’ve followed a lot of public companies, and I’ve been listening to quarterly conference calls for at least 15 years now. Chen is in a small group of great communicators. If you ever want to bore yourself to death with the opposite end of the spectrum, go listen to an Amazon conference call. Great company, but horrible speakers. Dreadful.

Also, before we dive into the financial analysis keep in mind that the stock is trading up very slightly (less than 3%) as I write this. What does that mean? It means the good news and bad news were about equal. For a volatile tech stock to move less than 3% is, in my opinion, a non-event. In other words, BlackBerry is still a story that requires a wait-and-see attitude.

Let’s take a look at the results

Revenue: $976 million for the quarter, or 12% less than analysts expected. The Street was looking for $1.1 billion in revenue. The breakdown was 37% from hardware, 56% services and 7% software and other.

Devices: BlackBerry recognized revenue on the sale of 1.3 million handsets in the quarter, down from 1.9 million last quarter. This is the accounting result, whereas actual device sell-through to end customers was 3.4 million units. Of the 3.4 million units, BlackBerry 7 hardware is still dominant at 2.3 million of the total. That means only 1.1 million BlackBerry 10 units made their way into customers’ hands this past quarter.

Gross margin: Margin climbed to 43% this quarter, up from 34% in the prior quarter. Some of this is clearly due to revenue mix (services has high margins, and made up a higher percent of total revenue). But there was obviously some cost reduction at play here. The company’s CFO said cost of devices has decline, but so has the cost of service revenue. Hopefully this is a sign that BlackBerry can return its hardware business to profit soon.

Operating expenses: BlackBerry made some good progress here this quarter! The total of R&D and SG&A expenses in the quarter was $601 million compared to $845 million last quarter. That’s a very substantial 29% sequential cost reduction. I realize some of you think cutting R&D and selling/marketing is a bad idea. But it’s not so much about cutting the important stuff. It’s about cutting the fat and having an operating expense budget that lines up with the revenue base. Remember that BlackBerry is burning cash right now. They have to make cuts. It’s not a choice. Chen said that cost cutting is about one quarter ahead of plan.

Earnings: Getting to the bottom line, the company’s earning per share came in at a loss of $0.08 (adjusted) versus Street expectations for a loss of $0.55. In other words, the help from the cost cutting was bigger than the hurt caused by lower than expected revenue. In early trading, it is often this number that people look to for their conclusion on whether to buy or sell the stock. But considering the beat was so significant, I think it's safe to say the Street is still quite worried about the revenue decline and cash burn.

Speaking of cash: The company now has $2.7 billion of cash in the bank, which is a decline of about $500 million from last quarter despite selling an additional $250 million in convertible debentures. In other words, if they hadn’t sold those debentures the cash balance would have dropped closer to $750 million. This should make it very obvious why there is a big move happening to sell real estate holdings. Cash is king when it comes to survival.

Other comments of interest from the call:

It’s interesting to see that BlackBerry 7 demand still outstrips BlackBerry 10 by a wide margin. The demand is strong enough to cause the company to negotiate a new order from Wistron, a long time partner on the manufacturing side. Chen said the new order for BlackBerry Bold handsets will be profitable for the company.

There wasn’t much in the way of guidance for next quarter other than to expect the company to hang on to its “strong cash balance” and to expect the service revenue to keep declining in a similar fashion to this past quarter. Remember that most of the service revenue comes from BlackBerry 7 devices because carriers pay BlackBerry a monthly fee to run the BlackBerry service (classic BES and BIS service). The BIS component is obviously in decline. The only way for BlackBerry to offset this decline is to sell more BES licenses and start to monetize its free services. The management team feels confident in its “solid” plan to monetize BBM, and it seems pretty clear this will start with what they’re calling “BBM Protect”, an enterprise service geared towards regulated industries. This eBBM client will also be able to message the broader consumer BBM community as opposed to being locked to just the enterprise.

Speaking of BBM, the user base is now at 85 million, up from 80 million last time they reported a number. Growth seems to have stalled. They’re working on pre-installing the app on Nokia Lumia and LG branded phones, among others. I think they need to find a way to dramatically accelerate BBM growth.

Wrapping it all up: We’re going to be waiting until later this year to see how much traction BlackBerry gets with BES12, and its enterprise growth initiatives. In the meantime it seems they’re well on their way to getting the hardware business to break even.

They’ve got $2.7 billion in cash as of quarter end. They’re still burning some, but this should decelerate. The big question is … how fast? If they can’t stem the bleeding of subscribers I think it’s possible that we’ll be questioning the words “strong cash balance” in 6-9 months. It’s starting to look very much like the convertible debenture was essential for the company’s survival.

As scary as the picture looks, I’m encouraged by John Chen’s leadership. I think he’s building a strong culture of execution. It’s clear they have a strong niche position in the market. I really hope to see them meet their growth goals and return to financial health.

Topics: BBRY Editorial

Reader comments

Here’s what matters from the BlackBerry Q4 financial results conference call


Great analysis Chris.

I'm with deercreekmichael. At least a couple of additional quarters.

I've thought all along their hardware costs were just too high. Hopefully they can sell the Z3 at a competitive price and the numbers should improve. Can't imagine the margins will be that great on the devices though so volumes may have to significantly improve to see much of a difference to the bottom line.

It is the only hope though. They're never going to make it as a pure software offering. It's the end to end solution that is compelling.

+1. Also I don't think they will do well unless they get their marketing act together. Almost no one I speak with about the Z10 is aware of the features it has which surpass the competition. The message just never got out.

Posted via CB10

Chris.... I preferred this article to the "BGR Lovefest" yesterday....

I thought it was interesting that BBM Channels is growing, rather, quickly at 500,000... I look at a number of them everyday...

Also, I think you need to get LTE Jakarta to developed

A $200 off contract 5 inch screened phone would sell.... need the Q20 to upgrade all the 9900's sooner than later as well.

Chen is one of the most unflappable CEO's I have seen...he goes on the "Apple Media Complex" channels like CNBC and Bloomberg and comforts himself with confidence and class.

CB10 from the Z30

I agree about Chen! As hard as they may try, no reporter or interviewer has ever been able to fluster him. He just never loses his cool.

Ya I second that!

They need to get the z3 in the emerging markets asap so more affordable lower end BB 10 phones get into the hands of ppl.

If this done last year properly and the fact if they had made the z10 and q10 more affordable they would have more sales.

 Posted via CB10 on my  Z30

The Z3 is good, but many legacy users still won't buy a BB10 all-touch, and even the Q10 is still not close enough to the 'legacy' experience. They want the comfort and simplicity of a phone that is more like a legacy BB.

Its a shame that they didn't release a BlackBerry "classic" line right from launch in January 2013.

I love BB10 just the way it is on my all-touch Z10, but I can understand that the jump from BB7 to BB10 was just too much for many people. If they had had a BB10 'classic' device with a keyboard and trackpad and physical buttons, they might have gotten all those legacy users (that they totally assumed would switch) to have actually switched.

"Its a shame that they didn't release a BlackBerry "classic" line right from launch in January 2013."

If the Q10 had a trackpad it would have been a winner. Too much change too fast for many people. Even including tech savvy people and the younger BlackBerry user.

Without a trackpad you need a five inch thumb.

I'd argue that the trackpad should have been added to Z10 and Z30 too. It would eliminate the trial-and-error fat-finger syndrome of copy-paste and clicking tiny embeded links. The trackpad is one of BB devices' best asset, and would have been a big differentiator of BB10 touch-screen phones to stand out from the seas of android and iOS phones.

I don't agree with your track pad statements. I think a lot of long time BlackBerry users planned to switch to I phones because of all the success they have had in the market. Or because so and so have it and I want it to. These phones don't have any track pad.

Posted via CB10

The product wasn't up to directly emulating all old rich (albeit crusty) BBOS functionality and outfitting a phone to look exactly like its forerunner would have been misleading and would have encouraged people to automatically upgrade to an experience whose difference would have been perceived as gaps and errors.

The treatment of BB10 as new and different was at least honest and avoided burning the most adamant but conservative BlackBerry supporters.

Posted via CB10

I'm in Jamaica on vacation and I've noticed almost every employee here has a BB7 phone. I only noticed one guest had a Q10.

Posted via CB10

Hey scott im happy that you choose jamaica for your vacation, theres a few Z10 here I have one my slef I see Q10 and q5 truth be told its the cost thats killing us so people will continue to buy bb7 phones we need the Z3 here that will boost sales.

Anthony, I agree. My wife is Jamaican and she talks to everyone back home through BBM on BB devices. I know full well how many folks in part of the world use BB's. Z3 is a great low cost phone giving users around the world access to BB10! Hopefully sooner rather than later.

You are right about costs sir! When BB didn't release a budget-friendly BB10 phone it was to be a serious blow to phone sales. Now its the low-cost Androids that are ruling since they are cheap and can accept fast H+ data and there's easy access to an ocean of cool apps. There is yet a BB10 device to satisfy all those criteria, plus no one knows much about BB10 even a year on!

A lot of people wouldn't have bought a BIS enabled BB10 phone including me. One of their biggest selling point in India at the moment is to tell consumers it runs on any normal 2G/3G plan.

Posted via CB10

Felix...legacy devices are used mainly by businesses and government clients. With IT budgets stretched and IT personnel stuck in..."if it works why mess with it" mode, not an easy sell for BB to upgrade clients to BB10 devices and BES10 or 12 licenses. Legacy devices work easily on current corporate if they sell and it keeps enterprises staying with BB in some capacity rather than leaving all together, why stop supporting this revenue in a time when you need all the revenue you can get?

It's not BIS. It's price.

The older BB7 devices used ealier (and therefore cheaper) technology. Still high quality physical devices but the technology had 10 years of cost reduction.

Some consumers want BB7 devices because they don't have LTE (or 3G for that matter) and a BB10 device is a pointless expense. What use is a fast browser when you're on a 2G network.

You have a better handle on this than most.

I am so tired of hearing people act as though BIS is the saviour of the company.

Hardly. It's just something that goes hand-in-hand with cheap devices and cheap service.

But the carriers are pushing hard to get out of BIS, because it adds cost and complexity to their business and people expect super-cheap service. Data usage/transfer has increased exponentially and it is no longer feasible to give people free service. Even in the developing world data transfer expectations are rising by leaps and bounds.

BIS strips out and compresses the data sent to the device lowering the amount of data used. Most developing countries carriers charge per meg which is a big reason BB OS7 devices are popular. With the US's "unlimited" gluttony and superfast LTE BIS is a waste to us but to them it is the only way they can afford a data plan at all.

Don't be so surprised. If I hadn't broken my 9900 out of warranty I'd still be happily using it. Got the Z30 now though and much happier with it for sure. For as long as it continues to be reliable and do its job well, why change it?

Posted via CB10

Just plus threeing this - is the podcast coming this eve?

Posted via the Android CrackBerry App!

The great sage Chris Umiastowski has spoken.

Would the Z3 and the Q20 change the outlook if they were released at the same time?

Posted via CB10

Listening to analysts on a toronto news station. They are saying it's bad news and that blackberry will most likely broken up and sold off. I don't get the stupidity of so called experts.

Posted via CB10

They shouldn't call it analysis anymore for these "news" stations. They should just call it opinion. Most of these so called journalists don't research anything nowadays. It's what they pick up on the wire and other sources on their way in to work. Bunch of jokers. So glad I left that field

What do you mean, "nowadays"? Most "analysts" have always been of the finger in the air variety. Present company excepted, what makes you think real analysts give their advice for free to the news channels?

Posted via CB10

Finger in the air?

Just what the word "analyst" describes, they pull it out of their lower backside. Usually nothing of real value...

"No Q10?" -> "Buy from Chen... "

Nice, even balanced commentary Chris. I enjoy reading your articles even if the subject matter is not cheery.

Posted via CB10

The bleeding will never stop, when your old devices out sell your news, what is your strategy or marketing direction...the Z10 is old news now, the Z30 might be the best phone out, but why would anyone invest money in it... if I wasn't a blackberry fan, blackberry wouldn't even be on my radar. We need to stop fooling ourselves, Blackberry needs a game changer...

Posted via CB10

And marketing, some marketing, even a bit of marketing! Because currently there is n-o-n-e, repeat N-O-N-E!

I like Chen a lot but if marketing continues to be conspicuosly absent I think he has some other plan. (maybe his thinking is that the current device lineup Qs/Zs is already a bit old to warrant heavy marketing and they will go full steam with the Z3 and Q20...)

Posted via CB10

He'll market when he thinks it makes sense.

Right now he has nothing to see in North America that the carriers want. All the BlackBerry devices are too expensive to the carrier and are not price competitive.

I imagine they'll market the Z3 when it's launched. Since carriers will be able to make money pushing the devices.

I thought Foxconn is going to be responsible for the advertising for the Z3. I just don't see much advertising for the Z3 except in the countries that it will be launched.

Posted via the Android CrackBerry App!

Geez, if Foxconn does everything and it's a 150.00$ phone, what's the margin for BB? 5 bucks a phone?

If you'd rather they spend every last dime they have on a short marketing blitz that will accomplish approximately nil, then it's a good thing you're not running the company.

Yeah, it would be nice if they could just go spend $500 million on marketing every year in just a single country, like Samsung and Apple do. But they don't have it, and in the USA it would be a waste of time. Even if they doubled their marketshare here in the USA as a result of advertising they would lose money on that expenditure.

Google spent half a billion dollars trying to push the Moto X and their marketshare on that brand went from 6.9% to 7.0%. Now that's what I call nice cost/benefit. Not. (And it's also why they just unloaded that company onto Lenovo)

I understand the need to conserve cash buy there is an old saying "penny wise and pound foolish" that seems to apply. At the very least they should use free sources of advertising like social media.
Make an entertaining ad that can go viral such as the infamous WAAAAZZZUUUUUP? ad.

Don Diego endorses the Zed.

Yes. There are basically two ways how to bring handsets (and OS) to the masses.

1) Invest in marketing to bring the phones at premium price.
2) Undercut phone price.

By choosing none of these options BlackBerry voluntarily decided not to bring BB10 devices to the masses.
The crucial question is why did BlackBerry decide so? Why they DECIDED NOT TO SELL hardware?

I would make a Z30 marketing not spend a lot of money but promote it ! The Z30 such a great phone and with the 10.2.1 OS its the true BlackBerrry 10 phone period the new Blackberry Q20 Classic will replace the Q10 !! Z3 is the specific market phone and dump the rest of the BB10 phones

BlackBerry and Chen are not worried because they are all expecting these results. Expect bad results but not totally worse. This bleeding will take long but somehow it is slowly heals. IN CHEN WE TRUST!

BBM needs to be on Android tablets. My kids like to send me messages and currently they cannot. Sure it's just kids but if I cannot communicate with everyone then I need to use another tool.

BB7 needs to be there for companies using the old BES servers. Enterprise customers are notoriously slow at upgrading, look at all the Xp customers complaining.

New phones will be mostly keyboards as BlackBerry is the only choice at the moment, they cannot compete with Android and Apple until the negative perception of the whole company improves.

BlackBerry should not do much marketing for their phones yet. They should spend their money wisely on Enterprise customers first as that's where their future lies. Only when they turn the corner and public perception has improved should they try to market to consumers again.

BlackBerry needs to continue driving towards the ownership of their OS updates. With carriers abandoning good support, BlackBerry must take control of this quickly and do it themselves.

Posted via CB10

MC...Android devices can easily and freely download BBM app for Android...signup for account and begin adding contacts and chatting. Kids download apps all day shouldn't take them no more than 10 mins with the account signup process. It would be great if BBM pre-installed on alot of devices but not necessary for you and the kids to use the service.

Google BBM apk.

I have the Nexus 7 and running the latest version of BBM.

I think I got it from apkdrawer or something like that.

I think now with a proper and full running OS for BlackBerry 10 you'll find more people open to the new devices and taking time to learn why it is such an important OS And device.... leading into higher sales.... I think all this is great news and the response from the stock market is also a good sign people and shareholders like myself are happy and looking forward.

Posted via CB10

I totally agree with everything in your article, I think one would have actually listened to the webcast to see the glass half full. I think Chen is doing a really good job.


Well, I ordered a 9900 through my job because they chose not to support BB10. So I'm using a brand new AT&T Bold 9900 that was launched in August 2011. No wonder BB 7 still sells more.

Are Good and other such companies solvent? If so, I don't see why BB is or should be worse in that area. Yes I know they are tiny and perhaps from this perspective BB is a bloated company but I think Chen can and will make the cuts they need to compete and win against Good etc.

This is where people should think about the competition being and not APPLE, GOOGLE and MICROSOFT.

It's amazing how many OS 7 devises they sell in comparison with BBY 10.
Really I can't understand it!

Sent from my Z 30

You must be new here. Welcome to the community.

It really has a lot to do with the failed BlackBerry 10 launch in 2013. There was nothing but complete ineptitude from the board level down. BlackBerry has not been able to recover from that missed opportunity.

The Z3 handset is extremely important and BB ace in the hole to have bigger sales then BB OS 7 devices. I know for a fact this phone will sell well in emerging markets as its not BB10 or the Phone hardware is the problem but the pricing look at the Z10 India Price slash got sold out quickly and just got restocked recently. The Z3 with a 5 inch screen big huge battery and BB 10.2.1 and soon 10.3 this phone will blow away the low end android and windows phone easily since BB10 software is superior to iOS and Android (Kit Kat). I wish they could launch beginning of april instead of late april.

Spot on, Brother Anthony...gotta get the Q20 in the hands of 9900 owners before they defect...they love the it.

CB10 from the Z30

I am telling you ONLY reason BB OS7 outsells is because of pricing!!!! Once the Q20 gets released and Z3 because its from foxconn it will be priced competitively and get BB10 in the hands of the users. Of course lack of marketing and apps matter as well!!! However pricing was the major blow point in the launch of BB10 cant release phones with premium prices until you prove the power of the OS first.....BB aint apple right now...slowly and surely wins the race...

True...true... what do you think is going to take to get there? I mean, if you look on Verizon, Amazon, Rogers etc and see the owners reviews - Z30 is the "Best Rated/Most Recommended" phone on the planet... or if you look at Techno Buffalo "March Mobile Madness" tourney - Z30 smoked em all.

What is it going to take, Anthony, for people to stop settling on less than a Z30?

First of all they need to show promising BB 10 numbers to the public....the negative aura around blackberry right now and major core apps is the problem and lack of marketing. You can have the best product out there but without proper execution in marketing (I have a panasonic 60 inch UT low end series Plasma and it blows away Samsung high end LED and Plasma TV's I know because I have one and everybody who comes over is like damn what kind of TV is that and is shocked its a plasma panasonic TV) and core features it doesn't matter but first and foremost Blackberry needs to get back in a positive light with the consumer base right now.....The Z3 sales will reflect that first of all and if they get enough Z3 sold before the end of Q1 2015 (end of may) then even though they will still bleed money at least BB10 adoption rate will increase and that way the media can show a more positive light in BB 10 sales then people will be like " Wow BB is selling a lot of there handsets let me check them out and see what the hype is about" . Now the number one thing hurting BB right now is the Carrier Stores...I can guarantee you that 95 percent of the sales people do NOT push BB 10 at all and will discourage people who want a BB 10 to buy it...."BB is going bankrupt" "BB Sucks" " No one is buying BB" We need to change the mindset of these sales reps by having a young and informative team to show case the "Coolness" of BB apps....the hub....toast notification...keyboard......also what is hurting them in the store is the retail demo....I can tell you it is the most boring and complex demo....they need to put games.....apps....on it....heck even have a booth with a TV and Moga Game pad with BB10 so that the YOUNG people can demo it and be like WOW that's a blackberry phone playing games like that.....So before blackberry can go anywhere the mindset of the consumer needs to change better support with carrier stores.....and most of CLEVER marketing something that is fun and appealing and not so business need a youtube video to go viral that's fun and appealing less business mindframe and more hip and young and cool mindset.....and you dont need tons of money to do that...make a youtube video...look at the VW commercials ...the White jamaican one....the Star Wars VW commercials...they are genius and they go viral.....Also they need to create hype over a full high end touch screen teasers.....put high end specs on it....create a pre order system.....I have so many ideas....

I'm in the market for a new phone in the fall, my wife will likely get my Z10 and I'll definitely consider buying the Z3 outright for myself unless something new and earth shattering is on the horizon.

I have no need for 10 million invisible pixels or for 8 cores (at least not for what I do today on phone).

Posted via CB10

I'm not going to pretend that I'm a financial specialist of any sort.. however, I'm surprised to see that people are still buying devices that run BB7OS?! Especially considering the absolutely brilliant devices that run on bb10?! I strongly feel that BlackBerry is losing out in the market by a lack of marketing towards their newest devices and promotion of the advantages of running on bb10OS. For instance, I own a bbZ30 which is a superior device in my mind, I discovered it solely by shopping for a new phone.. otherwise, I would have never known it existed! I don't hear about it in radio or television advertisements, meanwhile we're getting the Samsung Galaxy S4 rammed down our throats on every other commercial. And its virtually impossible to purchase any accessories for the Z30 in any retail stores (I purchased all of mine through crackberry). I'm not saying one device is going to magically produce hundreds of millions in revenue; but it could very easily increase revenues for BlackBerry with an aggressive marketing campaign catered towards expanding their target market for this phone as the Z30 does have a multi market appeal. This device is the best i've ever seen from blackberry, maybe it's time to rally around it. Hopefully, the Q30 will be pushed hard upon its inception as it also looks like it has the potential to be a force in the market!

Like I said, I'm not a marketing genius or financial specialist of any sort.. and I certainly understand marketing campaigns cost big money, but I strongly feel that this phone can generate an excellent return if pushed harder on the market! Just my 2 cents...



Advertise will burn the 2 billions they still have in less than 2 months. Advertising cost lot specially in north amercica and Europe. I can't see any issue!

Posted via CB10

It's hard to keep hearing this type of news. A year ago things seemed bad, but now they look hopeless. As much as I like Chen, he is getting paid to do a job, but it's still not clear to me how things are going to move forward. A year ago we had a lot more hope in a turn around, not having any idea of the sales numbers or acceptance of BB10. Now those numbers are in and no where near where they need to be. There can be no more excuses for what seems to be a complete failure to understand the market. The z3 has to sell, and sell big, but without the full eco system that the others have I cant see it. Not today anyway.

The only hope I see is if there is a top secret phone in the works that has revolutionary features - i.e. not simply the most technologically advanced, not the smoothest or most beautiful but a phone that does something nobody else has even dreamed of. If not this, nobody will pay any notice.

The apparent refocus on keyboard phones strikes me as insanity, has the world not moved past the physical keyboard? North America has, not sure about the rest of the world???

I am a BlackBerry fan and I'll definitely consider another BlackBerry when I replace my Z10 but not sure I like the direction I'm seeing!

Posted via CB10

Will be nice if Z3 catches on, definitely one I'll consider for myself.

From what I remember Foxconn was going to be involved in marketing as well which might improve things...

Posted via CB10

All the talk, new phones, layoffs, cutting expenses etc. are all nice, but the sales figure is most important 975 million, down from 1.3 million, street expected 1.1.

This trend is unsustainable.

Great Read.

At this point it's understandable why BB10 devices are seeing weaker sales. Much of this can be contributed to the previous management's launch event, lack of effective marketing, and the "4 Sale Sign" that should never have gone up, hence the Z10 write downs due to returns via company uncertancy.

ZERO $$$ and ZERO Efforts to market BB10. That is the reason for low sales. Many still don't understand the difference nor do they realize BB10 exists.

That said, with John Chen in charge, there is a reason why he's not poring mass amounts of money in Marketing. BBRY's image has been tarnished by the bashing media, miss-information and flat out lies about the companies demise.

I can see Mr. Chen slowly but surely starting to build Carrier relations along with joint Marketing efforts, especially in the USA market.

I believe he needs to get the house in order before he can start focusing on the hardware division. And that is what I believe he's doing. I think by now it's safe to say, without Hardware & Consumers, it's Enterprise efforts "WILL" eventually dwindle away, and John knows this.

Chris, your article is well written with a none bias point of view. Thank You,

Posted via CB10

^^ Precisely. And you would think If they were serious about sales they'd do something beyond just designing and manufacturing a product. If they won't lift a finger to show how and why the product is new, to show people why they should want it, to combat the harsh media, there's little hope :(

Is it time to do this??

Retail stores
Main article: Apple Store
In May 2001, after much speculation, Apple announced the opening of a line of Apple retail stores, to be located throughout the major U.S. computer buying markets. The stores were designed for two primary purposes: to stem the tide of Apple's declining share of the computer market, as well as a response to poor marketing of Apple products at third-party retail outlets.

Posted via CB10

Wouldn't be too expensive to have a store in New York, Chicago, LA, San Francisco, Boston, Washington, ...

Five or ten throughout the US in major cities. Shop rental prices won't kill it.

"No Q10?" -> "Buy from Chen... "

I think that this is the only way to market premium devices. BB10 is a new OS and as such requires a tender touch to sell.

You need young intelligent employees who know BlackBerry inside out and love the product.

If keeping costs down is an issue, then use the shop front to point people to the online store.

Posted via CB10

Now that may be an effective way to spend some marketing $$$$. To open up a few retail chains to show and demonstrate how awesome BB10 truly is. I would also suggest they open a few in Canada, primarily in Toronto, Vancouver and Montreal.
Great Suggestion. Hope John Chen reads this.

Sometimes is seriously wrong, they need more BB10 devices out the door, this is not doing them any good.
With all respect to bbos7 it is so far behind tech wise, that people keep associating BlackBerry with old tech, and that's the main reason for defectors ,THEY NEED TO SEED BB10 QUICK!!! .
They need more /better advertising, those previous efforts were just weak

Posted via CB10


They reduced how many BB10 devices are to be fed into the channel by 1/3 I believe. You cannot sell high amounts of devices without proper marketing and carrier support. As soon as BBRY rectifies its issues, only then will we see a stronger marketing effort and stronger carrier relations. And listening to John's interviews, this is going to happen sometime in 2014.

Until then, we all need to help BBRY market BB10 to family and friends :)

Great journalism as usual Chris.

Re: the company's cash position - could you speculate on the best case scenario for the next few quarters, if the Z3 is a mild success? Given the R&D cost cutting?

Also curious - We were led to believe that BB's cash position was closer to the 4 billion mark, after the Fairfax investment, and also including the tax $ they were getting back...there are several CB articles indicating this. What happened, or were those numbers wrong?

Posted via CB10


Great point, but not in this quarter, perhaps the next, I can see BBRY increasing its cash position via Government tax breaks and Z3 sales. Personally I can see the Z3 being a great success for BBRY, especially in that market and at a price below $200. Heck, if they offered it in North America, it would SELL like Wild Fire.

Man! We need a advertise and market. When was the last BlackBerry Commercial or billboard you saw about BlackBerry 10. ? This is the problem. We have this great device, better than ios but people never hear about it. We need to market. I love Chen but where is the marketing. We want to increase hardware sales but we don't advertise. I'm no genius but how do u expect to increase sales!!!!! Or is it just me.

Posted via CB10

Jamaica was a BlackBerry Country everybody use BlackBerry & Samsung visit Jamaica 2011 an said that they're going to change the Country to Android, and they did what am saying did BlackBerry visit NO all they do is sit behind desk like that can help go out mix & mingle with the public, look at politicians they have to leave desk too to get their words out stop wasting time & money on one area, when you doing a exam & you can't conquer the first one leave it then attack it again

Taste the Fruity Goodness of a BlackBerry

Great analysis Chris. About the 85 millions subs for BBM though, for which x-bbm only launched in October 2013, and given the fact that the BBOS subs at that time might have been down to 50 millions already, then it means x-BBM allowed a quick 30 millions of added subs in the first week, and since then, an increase of 16.6% (5 mil/30 mil) in under four months. I think this is the overall number we have to look at since the install base of BBOS was already there.

Good article. Even cranked hard, it takes time to get a ship turned around. I think Chen gets it, takes it seriously and instill confidence.

As to the continued sale of BB7 devices, a couple of things come to mind. First, the world economy crashed & companies continue to be wary. So you stick with what you have if you can. Also, it really scared me and and created extra work for me to switch to BB10. It was missing some core functionality I depended on. Businesses knew this and might have been waiting or left. I think BlackBerry made a critical mistake ignoring smaller, non-enterprise companies.

Posted via CB from "Z" best

3 million phones in 3 months... I don't see how you can make money that way unless all you do is make phones and and don't have this big foot print like BB does. I can see them selling software and services but with selling only 1 million BB10 phones in 3 months I just don't see they can continue. BB is selling close to 2 to 1 BB7 devices. If no one wants BB10 in Business and they rather get BB7 devices they better figure out why otherwise there screwed as a handset seller.

Good analysis. But I see very little strategy with the consumer market. With BES supporting also android and it's, decisions by employees over which phone the enterprise uses is key. This will be less an enterprise decision than a consumer decision. So marketing to consumers is critical. Someone please explain how BlackBerry is handling this. To me they are not.

Posted via CB10

Apple, Android, Windows offer more choices that transform phones into toys that distract and entertain.

That's the strength of the current market place and the reason of their success story.

BlackBerry offers a secure work tool.
That is their dominion and the reason I prefer using my Z10.

No one can tell what the future holds but for now I will enjoy it.

Posted via CB10

So the stock is flat right after the report but slides down 7.6% after JC does his interviews. What does that mean? Perhaps all that talking isn't as compelling when you're doing it with my shareholder money. Nice plan, JC, but it looks like it will take a while. I'll sit on the sidelines for now and catch your stock on the way back up.

Again it comes to me as they need a truly high end all touch phone to try to re-brand blackberry as something "cool" until then Rip BlackBerry.

Posted via CB10

Good post. What is the user base for BB10 these days? 4 or 5 million? I am still beyond baffled by the resilience of OS7 handsets and the lack of uptake for BB10.

Gotta be independent thinking man to be able to handle the power of the Z30.

"Sheep Settle for Less - Winners are Powered by BlackBerry"

CB10 from the Z30

I like it. Perhaps "winners" can be called "one percenters" since that sounds more exclusive and is technically true. One percent of market share.

Chen is strong leadership with experience. But it's going to be a hard year. Let's hope he makes all the right decisions because there is little to 0 room for mistakes at this point. It's not over, but I've seen the fat lady and always beat her with my Q10 when she gets too close for comfort.

Posted with my CB-Q10 using the power of " Q "

If BlackBerry doesn't advertise then they are done for. Period. When customers get sick of Android and Apple where will they go? They will go to what they have seen on commercials. If BlackBerry doesn't advertise then we will see a huge increase in Windows Phone sales and a decline of BlackBerry sales.

Posted via CB10

I believe what other said here, that 2 more quarters before we see some improvements.

" Initiated from my Q10 "

Much better than I was anticipating! (Still bad of course, but we knew it would be: it was always just a question of HOW bad.)

Good post Chris. Pretty much what I expected. Looks like Mr. Chen has managed to slowly curve the losses. I am surprised about the continuel strong demand for bbos7 which probably equates to the 9900. Im not surprised about the lack of demand for bb10 as adverts are still pretty much non - existent. Even when traveling to south east asia I dont see much ads for it. Consumer awareness is stiil nowhere, and its doing a great disservice to an incredible device that is the z30. I, for one, will always make bb10 as my primary.

It feels as though Blackberry is now streamlined, with a renewed focus, and a new management team Blackberry is on an upswing I think. They will still post quarterly losses for awhile but thats normal I think. As for new devices, i"ll say it again and again " my slider please"

Blackberry, my proverbial middle finger

Great analysis. Understood and agreed with everything you said. Chen faces a difficult challenge. But I'm confident that he will be able to make the company really successful and profitable in the long run. He accepted the job knowing the situation that BlackBerry was facing and has held how own since.

I still can't believe that legacy devices are out selling the new devices. I blame marketing. The price is reasonable considering what you get in the phone and operating system. However in the past the marketing department has done a poor job with letting persons with other phones know that BlackBerry's new devices are worth the cost. The bad taste of the legacy devices still linger on. I believe the company should have an extensive trade in program. Get the new devices out in the market. Make people see that BlackBerry is okay. And eventually others will catch on. My opinion.

Posted via CB10

BlackBerry should uniquely advertise Channels. Could pay off. If people think everyone else is using it. Like FB and Twitter. Half the registered users are inactive. The actual numbers of users is way inflated. Advertising and the fact that everyone has to be like the next. Odd. But seems factual.

Posted via CB10

I was guessing at user figures and was commenting on the FB and Twitter as having inaccuracies. And where is out CB app update with post editing. ???? Lol.

Posted via CB10

I'm sorry but BB7 outselling BB10 by a lot simply show that BlackBerry is still dazed and confused. It's disappointing. The lack of a coherent strategy to convert BB7 users to BB10 is painful to observe...oh yes the Q20, that was clever...

How about something simple like get a BB10 device at half price against your BB7 phone? Ah yes, we need carriers' support for this one as we don't have our own distribution channels. But wait, it's the carriers' pastime to bash us. Hm ok then, we'll order more 2012 devices in 2014...

That'll make a great business school case...

Posted via CB10

Looking at the data, not sure we are going to see a touch screen flagship device to replace the z30 this year.... why because 9 out of 10 people would pick the Samsung s5 or the htc m8 over whatever touch screen device blackberry decides to make because they are all going to be priced the same. Flagship phones are expensive and few people would want to spend 600 dollars on a blackberry. They rather pick Samsung, apple or htc.

The z3 which is affordable would increase sales and the number of people using bb10 devices. But I'm worried.... I'm not sure the 2 other blackberries with keyboards would sale much...

Posted via CB10

About selling more os7 than bb10, let me say I struggle to find some carrier wanting to sell me a a BlackBerry 10.
Telefonica only sells Z10 if you ask for it. Vodafone says the Z10 is obsolete and with lots of issues. And says BlackBerry is running down. Don't ask them about any other model. Orange has the Z10 and Q5 and they ask you if you are sure about getting a BlackBerry instead of an Android.

Posted from my C=64

Price is king....
Over here we don't have contracts... we buy phones unlocked and pay in full.
The reason bbos7 devices are selling is because of the price. Its a cheap, well built device. Where I'm from, if you want a phone and have only $200, you either pick the lumia 520 or a blackberry 9620.

Bold 9620 = $180

The blackberry brand is known over here and 8/10 people will pick BlackBerry over lumia.

Same reason why the blackberry 10 devices ain't selling...price!!!

Right now a q10 and a Samsung s3/note 2 are priced about the same. 8/10 people would pick the Samsung over the BlackBerry... why because they "feel" the Samsung is the phone is more value.

The z10 is selling like fire right now because of the low price. No premium phone is priced close to the z10 at the moment. The Samsung grand is the phone that comes close but people pick the z10 over that phone.

Posted via CB10

Thank you Chris for your clear and to the point review of of today's financial news in regards to BlackBerry!

I work in education, love my Z10 and have no hesitation showing off my unit to my students (middle and high school). I have not run into anyone who outright disliked this BlackBerry. However, the majority of the concerns are about the lack of apps, and I mean some of the more popular ones, readily available on iOS and Google.

I'd love to learn why:

1. The company does not advertise to the public (especially in the US)

2. Google play is not made officially available and supported by BlackBerry, let alone the fact that unless one follows and reads BlackBerry blogs, etc, one would not know about many Android apps being available for download.

Posted via CB10

BB has already said that they don't intend to pursue Google certification, meaning, no Play Store. Google's requirements for certification are quite clear, and BB10 would never cut it - they'd have to scrap BB10 and run a build of Android in order to get certified.

Was in London the pas 2 days, passed in front of a Vodafone shop. Noticed they were exposing z30 from the outdoor but inside the only table was BlackBerry only. They were the only one with z30. All other shops had z10, q10 at best. So the Vodafone guy told me 2 things:
- they stopped z10
-in pseudo customer emphase, yes the problem is the OS. My guess is that's what he hears from the users. I saw quite some bolds, but no q10 and only one z10. I saw one older guy taking a look at the q10 in the carphone warehouse, because there were some papers from the shop advertising the q10. But his body mimic was quite like: no its quite not there. So he wasn't up to try it.
I'm not sure that the trackpad is the only issue... but it may help getting this hesitating users try playing with it. But still the os mustn't be a burden in the very first steps.

I was, maybe still am, a diehard blackberry fan. Couple years ago I went to Apple. Looking for change and discovering Blackberrys newer offerings, I went to my local corporate Verizon store, they don't even have the Z30 on display!! Wtf!? You can't even buy it unless you walk in there knowing what you looking for!!

You know what pisses me off about the 9900 re-order? There will be no changes. Now would be the opportune time to say "hey for minimal cost differential we could swap the 1.2 for a 1.5 single core, or maybe push the on-device ram to 1gb".

But no. It's BBRY.

Posted via CB10 via the BlackBerry Q10!

Strong incentives for BB7 users to get a new 'Classic Series' BlackBerry 10 device. They need to go after those people with some tasteful aggressiveness. Or use the Z10's and Q10's as 'carrots' now that they're built. They're seriously such awesome phones, it's hard to believe more BB7 users cannot be enticed by the superior capabilities of existing and upcoming BlackBerry 10 hardware.

Posted via CB10

Comparing any BB7 device (Honda civic) to any BlackBerry 10 device (Mercedes Benz) is sorta like that.

Posted via CB10

I've read the transcript from the conference call and noticed something that no-one seems to have picked up on. Chen mentioned that they are looking at moving into non-traditional sales channels including e-commerce and specifically mentioned and the availability of unlocked phones there. They are also training a direct to enterprise sales force that apparently both for the sale of handsets but also software. What I take away from this is that BlackBerry is going to focus its marketing on the enterprise space, and will be focusing on selling end-to-end solutions to business - handsets, BES 12, Cloud services, eBBM etc. He mentioned that they are working with third parties on ecommerce.

My understanding of the Blackberry-Foxconn deal is that Foxconn will be involved in marketing and aftercare of the Z3 in Indonesia (and presumably in other emerging markets).

The strategy that I see developing is that BlackBerry is going to focus it's resources almost entirely on the enterprise sector selling both handsets and software (Chen made clear during the conference call that he thinks BlackBerry has a bad habit of giving away software for free that it could charge for). With respect to the developing world, it is farming out the hardware business to Foxconn who will assume all the risks, and for the developed world it isn't going to try to go head-to-head with Apple and Samsung through the carriers but instead will focus on selling unlocked phones

Posted via CB10

Just one Question....

Why is BlackBerry using their old manufacturer to build the new OS7 bold? The reason they went to foxcom was to cut costs and let them handle on demand orders. Why does foxcom not make these to keep costs down even more?

Posted via CB10

Wistron was the company that built the 9900s in the first place - they likely have all of the tooling and knowledge, so why pay to move all that to Foxconn? Wistron may not be as big as Foxconn, but they're still a huge Chinese OEM manufacturer.

May have been said already, but if ATT had the Z30, I'm willing to bet a few more sets sold. I just can't justify 500 for a phone. I do want a 5inch screen so maybe I'll pick a up z3 when a available if it works on ATT.

I would like to see more in the marketing/ advertising department. (more then a super bowl commercial). Most people that see I have a Z30 first make fun of me, then are curious about what the phone has to offer. They know absolutely nothing about it. After a short tutorial they are actually impressed with the features of OS10.

Posted via CB10

With Chen greenlighting another Bold, it'll mean even more sales of BB7.

IMHO, they should cease support for non-enterprise Legacy handsets immediately.

I can't believe the stupidity of the BoD/CEO right now.

Hello Microsoft, time to buy BlackBerry?

I understand that OS7 is the pinnacle of BBOS, but for the life of me, I can't understand why BBOS phones continue to out sell BB10 devices that are far more capable. It seems like BlackBerry is stuck in this middle ground where they can't quite break through in the consumer area, and can't get people to let go of BBOS.
As for Chen being a great communicator, it seems it's been proved throughout history that great movements start with great communicators...

Posted via CB10

Windows XP still has nearly 30% marketshare, and we've had Vista, 7, and 8 in the past seven years to replace it. Sometimes the availability of a better product isn't enough to move people off what they know and love. And in some cases BB10 doesn't offer what you can get with an OS7 phone. I'd be on BB10 if there were a Q or Z without a camera, but it looks like I'm stuck with a 99xx for the foreseeable future.

In the enterprise, it's because BBOS phones are supported and BB10 phones are not. Many companies have not, and have no immediate plans to upgrade from BES5 to BES10.

In the consumer market, it's price. Lots of countries are selling old Curves from BB's stockpiles at very low prices. BB makes virtually nothing from these sales (these old phones have long-since been written down), but at least gets service revenues from BIS on these phones.

"But it’s not so much about cutting the important stuff. It’s about cutting the fat and having an operating expense budget that lines up with the revenue base."

While that may be true and necessary, it doesn't implicitly put BlackBerry in a more competitive position--at least not beyond the basic and obvious need to survive to even compete at all. Also, it's an assumption that the company is trimming "fat" here... At some point, you've squeezed out all the efficiency you can while doing the same things. It's much more likely that these cuts are the result of the conscious decision to do *fewer* or *different* things, for which the company doesn't need the resources in question.

Posted via the Android CrackBerry App!

Just to touch on the issue of pricing, check what I found at my local Telus store, arranged from left to right as their 'no contact' prices.

Z10: $450
Z30: $600
Q10: $700

... Yup, pricing.

Posted via CB10

Great summary, Chris. As the saying goes, "No pain, no gain.". I'm with you on having Chen at the helm. It took some time for BlackBerry to get where they are now, so it will take time to recoup their return to profitability and regain market share. Keep the faith!

Posted via CB10

This is only 3 months Chen @ the top of the management. We need at least another year before giving verdict. I agree with all comments and analysis but only time will tell wait and see. All d best

Posted via CB10

Just a couple thoughts:

- On the lack of mass marketing / advertising - with the business model pivoting to enterprise customers, they're selling directly to corporate purchasing departments / IT, hence the focus on building an enterprise sales force, and not consumer ad dollars. The majority of us 'consumers' in developed markets will not see ads - they're not trying to reach us that way. If you work in corporate or regulated industries you'll be targeted via people who make your IT decisions.

- On the decision to keep producing BB7 Bold - this makes sense as long as BES12 is rolled out and that it can manage both BB7 and BB10 devices. This gives corporate customers the incentive to remain in the BlackBerry ecosystem, and crucially, to then gradually transition over to BB10+. The key is BES12 - it needs to cater to and capture the largest footprint of corporate users, whatever device they may be on in order to then convert them to BB10+, eBBM etc.

- The key to all of this working is Chen's enterprise sales force.

Posted via CB10

Great article, as always.
Looking forward to blackberry succeeding and growing in cash. I don't care if bbm gets ads, it'll help with the revenue and keep them going strong. :)

Posted via CrackBerry 10 (CB10) application using my BlackBerry Q10.

I really believe that BlackBerry will make it and out sell the others in the near future. See people get bored over time and think about it Android and I phones have been around a long time and if BlackBerry Marketing would see this and crack that one little window open they could make it.
An ad that says something like "BlackBerry not your run of the mill android and no not your kids I-toy either, this is an advanced phone for advanced people. Not that we ever left but we regrouped and we know what you want and what you need... We know you want to stay ahead of the pack... BlackBerry "
Yes they could have one guy in a chair yawning and growing a beard like Ripple Van Winkle talking on his old android and another grown man playing with an I-Phone like a kid and well you guys get the picture... OK I typed too much but hey I just got my new BlackBerry Z-10 and I love this thing to death. :-)
If anything I'm gonna take it to my grave with me if I don't figure out how to live forever first! :-D

Posted via CB10

Can anyone explain to me if the many million dollar payouts to Heinz and Boulbon were on the books this quarter?

Posted using my amazing and intelligent Z10

Why will BBRY not enter into the prepaid market here in the US?

Samsung and Apple have put their high end offerings into what is the largest growing market in the US. BBRY needs to get exposure. This means putting out handsets to the consumer market. If BBRY wants the US market back, they need to look into making affordable handsets that are total touch and are appealing to the KIDS!!!!!. Yes.....I said it. Kids tell parents what's cool. Most Americans don't even know what BB10 is.

Also, the word affordable comes back into play. Apps and/or games are cheaper on Google Play than on BB World and there are more sources of free music. Parents are on budgets. They will not afford at a higher price what they can get cheaper elsewhere. Until BBRY comes to grips w/ the reality of the average American consumer, expect this to continue.

BB10 needs exposure. The average American consumer is going the prepaid route. BBRY needs to look at which way the wind is blowing.

Track pad, track pad, track pad. The Q10, and Z10,Z30, Z3 can all have track pads. BlackBerry RELEASE A VIRTUAL TRACK PAD IN THE NEXT OS 10.3 RELEASE. Toggle on or off. Options to have track pad, ball or wheel. Located at the tool built with the other buttons or apair under your thumb where ever you touch the screen
I for one would love to turn my Z10 into memories of the past. Virtual track wheel baby. Next day track ball next day full gesture. Let me make it mine!

Posted via CB10

Thanks for the time and effort in writing this. I agree with you that John Chen is doing well. He really knows what he's doing and I hope #Blackberry can not only survive but thrive again. No matter what, Blackberry is the #original #smartphone!

Posted via CB10

I'm doing all I can to promote and to show everyone I come across how great BlackBerry 10 is. If only BlackBerry can put the same effort. I'll rather BlackBerry burn their cash on promoting BES12, BBM, BlackBerry10, etc.

Posted via CB10

OMG this is so F#$#ing painful. BB07 needs to DIE. It's the only way to stop this slow bleed. One way or the other, setting a date to end support for BB07, 2015, 2016... whatever, would make or break BlackBerry. I'm so GD tired of BB07.


It's like watching Cheers or Archie Bunker, good in the day but sh*t now.

Posted via CB10

I don't know why your going into detail with the minor gains and losses. It's simple BlackBerry has an anual loss of 5.9 billion. Full Stop. Let's not try to play with words please. Whether how much cash it has or Chen is doing a good job. The numbers show it all. Thanks BlackBerry for serving me all these years sad to see you go . With losses this big neither Chen, Yen, or ching chang can turn the company around.

Blackberry reports $5.9bn annual loss

Posted via CB10

I've had a BlackBerry for a very long time. At the time their were many BlackBerry users. I'm a Z10 owner and I love it but I know few people with Blackberries . The marketing was awful and the OS should have been better. I'm the only BlackBerry user in my family. I truly hope Chen can move BlackBerry ahead. I like what I like. Blackberry!

Posted via CB10

Thanks for this clear explanation. I hope they can cut enough expences to not be burning cash anymore in 2015. If they can, they've done it and things can only get better.

Posted with my Z10 via CB10

If they sell more BlackBerry 10 phones then that is more people using their app store. That also encourages new app development. I hope that they don't forget that with all this cost cutting .

Posted via CB10

I don't know how I would feel about a 9900-style BB10. I love my Q10 experience. A bit of larger Q10 would make it perfect.

Posted via CB10

As they say, it's darkest before dawn...The situation is not rosy by any stretch of the imagination. But even to a layperson such as myself, things sure don't look as desperate as a few months ago.

If nothing else, while BlackBerry's situation is still a precarious one, Chen has managed to stabilise it and somewhat stemm the bleeding and the all out freefall the company was finding itself in.

I think, that as many have pointed out, now it's all about execution and implementation. It will come down to how this plan is actually put into practice. Many will look to BlackBerry over the next few months in terms of stability. So they can't afford to be dithering, sloppy and come off looking close-minded and amateurish.

If they can hang on this year into the next, I would venture to say that things might actually start to look up.

Yet the road ahead is still long and hard. Make no mistake about that!

Cartman says: Screw you guys I'm going home!

This was a painful reality check. The revenue and sales numbers were worse than I expected; the loss per share much better. The expected guidance was lighter than I hoped.

Particularly, the sales ratio of BBOS versus BB10 hurts. This explains the one big surprise to me. Now, it makes complete and compelling sense to bring back the Bold. (I had thought the Q20 with the belt would have been enough.) John Chen made it clear enough, with an emphasis on enterprise users, keyboards are the next step devices of choice; for both BB10 and BBOS7.

For BlackBerry to prosper, first it must survive. The customers are clear, they want the old school devices. Their reasons vary, but their cash-votes count.

While I've used both OSes and enjoyed the learning curve transition to BB10, I work beside people who can't get it. (They are smart and driven, but cannot devole the mental resources to learn a different operating system, regardless of its promise. Learning BB10 is simply not a high priority, for them.) To win them to BB10, Blackberry must survive. Let a thousand flowers bloom.

Posted via CB10

The levels of delusion are quite sad. Why would iPhone/Droid users leave to go to return BB for a 3.5" screen? The BB fans who left for Droid left because of superior technology and better hardware I.E.....ready for this? A larger screen!

Who is going to cross back to BB? It certainly won't be the older BB users, who aren't compromising larger screens which allow them reading comfort. It certainly won't be younger, APP favoring, former BB users, who would have fewer apps to select from returning to BB's OS. It certainly won't eat away at the status driven former BB user who only went to Droid and iPhone for purely status reasons.

So that leaves us with the delusional BB fan, who let's face it, haven't left because they're fanatics. And perhaps a small group of begrudgingly iPhone/Droid users, who did leave initially, but would crawl back simply because they feel a certain loyalty to an inferior product.

And let's face it, the Q20 would also be inferior.

Hardware, Software ,emerging , market, Z3, Q20, Bold 9900, I m confused what John Chen wants to do he must be fixed! Is he moving to the future or returning to the past. This not good to make costumers confused. Strategy must be clear and targets fixed

Posted via CB10

Good stuff all the way through!!!!

Thanks for this. And I too am encouraged by Chen's leadership... hope he can stop the company's bleeding sooner than later..

I bought my PlayBook a Z10......

Q10 need to be promoted. It's the logical upgrade of the bold 9900. A product which is not well promoted does not exist. I believe it's the case of both Q10 and Z30.

Posted via CB10

"Cash is king when it comes to survival" No, the right product at the right time and the right price is. BlackBerry is currently doing 0/3.

"but this should decelerate" how long have we being hearing this...

"As scary as the picture looks" *check* "I’m encouraged by John Chen’s leadership. I think he’s building a strong culture of execution. It’s clear they have a strong niche position in the market"

Just because some one can communicate well does not mean they can walk the walk...executing jobs and real estate ? We can all do that as a basic of household budgeting, when you sell the ground beneath your feet generally your going bankrupt and are left homeless. Strong niche was exclusivity and security...the BISiness will not survive without consumers and businesses alike.

I'm interested in seeing how much hardware declines as a percentage of revenue over time. It almost seems as if they have to give the handsets away for free to capture market share.

Anyone know how much a handset costs them to make?

Posted via CB10

Okay, what if BlackBerry releases 'dumbdown' meaning BB10 basis, but same UI as in BB7? devices? Keyboard focusing I do understand.. most of BlackBerry user as a work device don't really care much apps, but efficiency, productivity (messaging messaging and messaging and communication ) I think trying to secure original user basis is a first priority..then recovery slowly..

Posted via CB10

It's interesting the BlackBerry 7 is doing so well. I can see why. The last Bold was my favorite device to date. Not sure if they needed to mess with that platform other than adding speed to the processor. Not sure my Q10 is as good as the Bold was. Hope they can turn this around.

Posted via CB10

BBM needs to be updated to video callls across all platforms and video sharing ( as per whatsapp).

The greatest obstacles facing the sale of new phones is lack of knowledge on how well the new hardware and software work and the constant bad press about the future of blackberry.

Many many people I know who have older BlackBerry and historically like their BlackBerry haven't upgrade for these reasons. They don't understand the unbelievable ability and performance of the new BlackBerry. Wasting time and $ on Alicia Keys did nothing to sell phones.

Finally, support your loyal people by re invigorating the playbook.

Posted via CB10

What I fine silly I'd when people go on about BB and losing money and etc. It's not as if it's pocket change or they are down to their last five bucks. I tend to leave business to those who run businesses. John is doing a great job and the future is bright. Keep making great phones and hire some good advertising reps.

Posted via CB10

Market BB10!!!!!

I see all kinds of Apple, Nokia and Samsung advertising. If people don't know what makes these blackberry 10 devices superior then they won't buy them. Surely those knuckle heads at the phone kiosks aren't pushing them because they don't even know what makes BlackBerry 10 superior in so many ways.

They all go to the trendy Apple and Samsung stuff because it's all people see in advertising.

Posted from my Z30 on CB10

The Z's are being outsold by legacy devices because everywhere you go,the sales staff are doing a friggin horrible job selling the Z30 and so on. Being a Z30 user,it is the most discouraged product at the Bell Stores, but the absolute best phone that I have ever owned. Very confusing?? JMO

The scarry part is what they aren't selling and the scarcity of developers. The Playbook is now officially orphaned. Other platforms even have music stands that are designed to hold Apple and DROID tablets. Music stands! We are falling far behind the industry and clinging to the last rays of hope. It's not good. Carriers here aren't even stocking devices, you have to order it and wait.
We need research in motion but right now we only have Blackberry. I am certain the security feature will niche Blackberry and they will survive. Without a unique innovation, that is where we will stay.
Unfortunately, I do not like any of the devices the.competition offer. I like Blackberry. But that also means I am left out of all the consumer goodies that developers are doling out for the competitors while we struggle to even get knockoffs (thank you thank you to all developers that have made the effort to bring us knock offs!!! Otherwise we would have nothing.

Posted via CB10