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< >

My thoughts on the BlackBerry Q2 results released this morning

By Chris Umiastowski on 27 Sep 2013 01:41 pm EDT
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This morning BlackBerry published its Q2 fiscal 2014 financial results by way of press release. They’ve made what I believe is a horrible decision to skip the usual conference call. My understanding is their SEC filing with management discussion and analysis (MD&A) will be out next week. This leaves me with less information than I’d like to base my analysis on. As usual, I’m going to tell it how I see it. No sugar coating. Just balanced commentary.

First of all, the published numbers are worse than they indicated last Friday, the date of their layoff announcement. The pre-announcement was certainly truthful by saying the GAAP loss was close to a billion dollars. What they didn’t tell us until this morning is that the pre-tax loss was actually $1.44 billion. I’m not a tax expert, so when I looked at last week’s pre-announcement I thought that, excluding the Z10 inventory write down, they were pretty close to break even. That’s not the case. They are bleeding badly.

With revenue of $1.6 billion, they had adjusted gross margin of 36%, or $570 million. That’s what is left to fund all expenses. Unfortunately operating expenses amounted to $1.06 billion, so they’re losing loads of cash.

They went from having $3.1 billion in cash last quarter to $2.6 billion now

This is, of course, confirmed on the cash flow statement. They went from having $3.1 billion in cash last quarter to $2.6 billion now. That’s $2 billion annualized, folks. Hopefully this paints you a crystal clear picture of exactly why they had to cut 4500 jobs last week. It’s sad, but it’s a no brainer. This company can’t survive without the cuts.

Operating expenses consist mostly of R&D and Selling, General and Administrative (SG&A), as most of you who pay attention to financials already know. The company spent almost $900 million on these two line items in Q2. If they are successful in cutting 50% of their operating expenses and hold revenues in place, they should get back to break even.

Let’s now talk about shipments and sell-through. As most of you already understand, the company sells hardware to carriers and other partners, who then sell it to end users. This quarter they recognized revenue on 3.7 million BlackBerry devices, although end customers actually took possession of 5.9 million devices. For comparison, last quarter they shipped 6.8 million devices and sell-through was also 6.8 million.

I’ve always felt that sell-through was the more important metric. Sell-through tells you what actual customers are doing, as opposed to sell-in, which tells you how carriers are behaving. Sell-through is down by 13%, which doesn’t seem horrible but it is. BlackBerry 10 is now in full force, and it only produced one solid quarter of growth (Q1), and is now in decline. This is a very bad sign.

What about the 3.7 million “shipments” this quarter?  The company explained in the press release (and the pre-announcement) that actual shipments were higher, but they could only recognize revenue on 3.7 million units. Have they changed their accounting policy?  No, they have not. I confirmed this with the company myself just today. I will offer my explanation on things. BlackBerry 10 sales are declining. BlackBerry 7 sales are declining. This is causing the company to be more conservative in recognizing revenue on product that can be returned by carriers if it doesn’t sell. The revenue recognition rules have not changed. What has changed is the risk around the shipments, therefore causing BlackBerry to use these existing rules as best it can to accurately report sales. After all, a device that gets returned to BlackBerry by the channel should never have been counted as revenue.

Another bad sign for the company is the consistent weakness across all geographical regions. Let’s look at some numbers:

  • North America sales are down 46% from last quarter. 
  • Europe, Middle East and Africa (EMEA) sales are down 49% from last quarter
  • Latin American sales are down 56% from last quarter.
  • Asia Pacific sales are down 47% from last quarter. 

That’s a very consistent drop in sales!

Of course all of this is relative to three month ago, and I’ll repeat myself here because it’s important: This is probably a reflection of the difference in management’s perception between Q1 and Q2 of how realistic it is that a shipment becomes an end customer sale. Sell-through numbers are down 13%, which is very different form the near-50% drop in reported revenue. I believe sell-through is a more important metric in terms of understanding the business trend.

I’d also like to point out that on the cashflow statement this company is still spending a lot of money on intangible asset purchases. The total was $268  million in Q2 and $335 million in Q1. My understanding is that this spending reflects upfront patent licensing expenses. Obviously this is not sustainable. BlackBerry can’t be doing $771 million in quarterly hardware sales while paying a huge portion of this out for licensing. This would make it impossible to continue in the hardware business. So either these licensing fees will drop proportionately with shipments, or BlackBerry has an impossibly unprofitable hardware business that nobody will ever buy, and will get shut down. I think the former argument is more likely at this point.

The only real good news is the growth in BES 10. Since July they’ve taken the installed base of servers from 19,000 to 25,000. This is pretty much the only part of their business that is growing. They absolutely need to keep this momentum going, just as they need to get the cross platform BBM launched, and grow that user base.

Although the sell-through decline isn’t as horrible, it’s still bad, and it has put the company in a very precarious position

All in all, the Q2 results look very scary because of the sequential revenue decline. Although the sell-through decline isn’t as horrible, it’s still bad, and it has put the company in a very precarious position. They need to swiftly execute the job cuts and decide whether or not they can remain in the smartphone business (actually making phones) or move to just software and services. They need to figure it out pretty fast, because they’re bleeding cash in a way that might accelerate as BB7 users transition off the platform or move to BB10.

Next week I’ll have a chance to look through the company’s SEC filings with full MD&A, so I’m sure I’ll be back with more at that time.

Topics: BBRY Editorial

Reader comments

My thoughts on the BlackBerry Q2 results released this morning

460 Comments

I can provide some insight on BES10 install count. As a BES5 customer, a 3rd party contacted me and set me up with BES10 for free - it was paid for entirely by BlackBerry, around $6k in labor services. Personally I was going to do it myself as it was not a complex install but i don't mind having someone that's done the install and has direct line with level2+ support at BBRY do the install for me.

I've never installed a BES, but I have to ask ... how the hell does it cost $6k to install software on a server?  Isn't this crazy? Even if you pay a guy $100/hr are we really talking about a job that requires 60 hours of labour?  If so, isn't this a huge problem?

I didn't get ripped off. Bbry picked up the tab. I got it for free. No way would I pay that much for a somewhat simple install (more complicated than installing an application, but nothing a bes admin would be afraid of).

A systems architect from a top of the line consulting company can cost as much as $400 an hour - depending on the complexity of the setup. Plus expenses of course. (Flights and hotels for a couple of days soon mounts up).

And there could be all manner of complexities. Multiple servers with failover; separate environments etc. Some BES set ups had literally dozens of servers.

I've installed countless BES5 servers and one (very well operating) BES 10 server. This is a silly number, $6K.

Yes, it does require some knowledge. No, it's not something that a competent systems admin can't do.

brkdncr says $6K in labor, so I don't think it includes CALs and hardware.

I think this sort of unveils something that I don't hear much of. People think Apple killed BlackBerry. This isn't entirely true. When Microsoft included (or improved) activesync in exchange, this made it possible to do with another handheld what only BES could do - provide two way synchronization of calendar, contacts, and email in real time. This is what really allowed companies to leave BlackBerry. My point is just that so many companies (who already had exchagne servers) said, "one less server to support, I like that,".

I don't think that activesync is as comprehensive as BES, but to many small businesses, it was enough.

Now... becuase I have a VMWare enviornment I was able to install BES5 and BES10 and neither have a dedicated server. But, I had to put a server in a DMZ for Mobile Iron, requiring a dedicated server. So, in my case, BES is still a lower cost solution. But, I digress...

BES is a real asset and it brings value, in my opinion. But, when it locks you into a specific phone and you aren't using that value, it becomes a liability. A $6,000 install doesn't exactly help that equation.

With enough device CALs, a dedicated SQL Server (not that it needs that, but in a big enough implementation it might), and dedicated hardware, windows server OS, plus labor. Yeah, you could clear $6K easy. But, brkdncr said $6K in labor...

Next to no marketing to show BlackBerry has an all new OS and phones and how it works. Not standing up to bad /faults media .making blatant mistakes at all levels of management and in every department . Putting little effort into apps ,all show no follow through, not getting updates out . Does anyone in management show up for work at all? All they need is a sex scandal and a massive security breach to hit every point on a list of how to destroy a company. Sex tape of Thor doing a underage girl with the passwords for the pentagon computers written on her body to be leaked soon.

Posted via Z10

Everyone...there will be no more Blackberry devices. It is over and come to grips. I have the Z10 and love it but this company is finished in the hardware business. Nobody wants these phones. Sorry to say but it is the facts.

Chris, great article...as always.

Me too. Can't wait to lay my hands on the Z30 cause its a thing of beauty. :)
Bad Management does NOT = Good product.

Some people mentioned in the forums the possibility of a fire sale like the low priced tablet from Palm or the Playbook. Is this a possibility with all the Z10's they wrote off today?

i imagine with the focus on the corporate side..you would think that the z10 that are written off would be offered free to companies who are on the fence about bes. if they buy it bb would provide free phones... get every one hook and BAMB there back...haha

People whine and complain about NSA this and NSA that, but the truth is, the majority of people want to have apps like Instagram more than they want security.

It's pretty sad and so hypocritical.

Posted via CB10 on my BlackBerry Z10

Not everyone wants Instagram. I don't know anyone that actually uses it. Maybe it's a generational thing. Me and my friends are in our 40s.

Posted via CB10

So could today's disclosures with BlackBerry's current financial situation also help explain why their marketing was not very good?

BlackBerry had not done enough to educate consumers about the difference between BB7 and BB10. What's worse is that the negative perception surrounding blackberry continues and nobody is or did anything about it. I'm in South Africa and the perception is so bad that people don't know the difference between the two BlackBerry platforms and most of them won't tell you why in their own words why they say Android, IPhone Or Windows phones are better ,they will say they are just better . I use a Z10 and it's the most amazing smartphone I've ever used. If BlackBerry set up stores worldwide like Apple it would have helped dilute the negative perception and the Brand would have stayed in the forefront in terms of consumer visibility and marketing. BlackBerry has a future in my own little survey out of 10 people using smartphones in South Africa it's safe to say 7 or 8 use blackberrys, i find it interesting that i hardly ever see anyone with high end devices from Samsung or Apple worse windows phones. BlackBerry 10 is the most underated OS in the smartphone business i have shown many people why it's an awesome OS and all of them admitted that they didn't know how good it was they only relied on the negative hearsayers. If i could open an exclusive BlackBerry store i would sell more devices than the carriers could ever dream of, I would get more people on Z10's in no time and get them hooked on BB10. A more personalized service to their customers would get BlackBerry a lot of attention and make them more money.

BlackBerry’s Z10 via CB10

@George You've hit on a major issue BlackBerry has. They just don't have the sales/marketing backup to support sales. Whether from brand specific stores or via carriers. Surely they could have a few people trained up and send them to carrier stores during a phone launch week for example. I believe they've done that in isolated cases.

The same goes for Holland and other countries I go to and let people play with my Z10.
Simple explaining the basics and of they go on the OS.

Posted via CB10

No, BlackBerry jam that we can put on out toast :)

--Q10 and Canadian all the way! Posted via CB10 on 10.2.0.1443. #IChooseBlackBerry10

Frustrating.

Telcel is the largest carrier in Mexico by a wide margin. The phones are made in Mexico. Blackberry, for years, was king in Mexico. One would think when the new phones were released, Blackberry would enjoy some decent marketing.

In my local Telcel office, there is a huge Samsung display. The q10 and the z10 are hidden in a display case, alongside a few dozen other phones. No hero status. Being an enthusiast, and a z10 owner (purchased in Canada), I asked when they were finally arriving, only to be shown what can only be described as a pathetic attempt to display them.

Same in the U.S. I travelled through recently, and no Q10 anywhere in a Best Buy. No Blackberry's at all in Wal-Mart.

How is Blackberry to possibly compete, if it's products are not carried or displayed?

Damn.

Come to think of it..2.6 Billion is nothing. They are almost out of business. Fairfax Financial is more of a ventilator. Now it is important to see what happens next. I fear the worst for my beloved BlackBerry :-(

Posted from my superhuman Q10

They'll survive. But they've had to act quickly to avoid losing the company altogether. Stay public and they'll be out of business within the year.

Their only option is to go private, cut costs and drive forward with their plans.

With two million phones to give away I can see a buy one get one free offer this fall season. Buy a Z30 get a Z10 free.

Fairfax will just break up the company and sell off parts to the highest bidders, they don't have any interest other than making as much money as possible with lowest possible investment. Ofcourse they can't say this now but nobody can stop them from doing this after the buyout.

And no one can stop them from keeping the company too. Fairfax "may" just break up the company but I believe they will make a go of it with the company as a whole and see if they can make it profitable for them in the near term.

Why would they do that? It's worth more together than apart.

And anyway, Prem Watsa has already stated he wants to turn the brand around. That is why he's taking them private in the first place. Have you seen the negative PR this week. What do you think that is doing and has been doing to device and services sales?

He'll keep it more or less as it is - with perhaps minor sell offs to fund R&D - and then take it public once the company has recovered.

I don't believe Prem Watsa, he is all about the money. If BB is not working out to pay the bills, he will break it up and sell it for scraps.

Prem Watsa is a value investor. He's made a number of bets on apparently dead opportunities and become a billionaire as a result.

Doesn't mean he can work the same magic with BlackBerry, but his company Fairfax was in more or less the same position and he turned it around.

Watsa is a value investor who will raise just about $4.7B from the market to buy the company, he won't put any money after that into a loss making entity.

He will raise the 4.7B, complete the purchase and then chop off and sell the pieces to the highest bidders, that is the only way he can extract value out of this deal, Watsa is not going to invest Billions for 1-2 years so that he can establish marketshare, he will finish this fast with as low investment as possible.

Chris, you wrote:

"I’d also like to point out that on the cashflow statement this company is still spending a lot of money on intangible asset purchases. The total was $603 million in Q2 and $537 million in Q1."

Which is totally wrong!

$603 million is for six months from 03/2013 to 08/2013. The purchase in Q2 is $268 million and that in last quarter (Q1) is $335, which can be seen from last quarter's earning report.

$537 million is for six months from 03/2012 to 08/2012.

Oh geez ... you're right. I obviousy hurried through my exploration of the cash flow and totally forgot Q2 CF is six months ended, not 3 months. Fixing.

For those of you who are complaining about the inventory reporting note that with the changing accounting rules and the way they record sold vs inventory, the company appears to be doing its best to give accurate guidance on sell through and inventory levels. It does the company no good to over- or under-state items as they will be taken to task by the regulators. Chris will correct me if I'm wrong on this, but it seems to me they are trying to give as clear a picture as they can.

25000 BES 10? Well, that probably includes the free trials that may or may not ultimately get activated.

Posted via CB10

It will show up - or not - in the service numbers (which I'm surprised Chris didn't touch on) over the coming quarters and years. Service revenue came in at $723 million this quarter which is a drop from $798 million last quarter and a cool billion a year ago. It is also lower than may have been expected from their pre-release where they said "The Company currently expects to report revenue for the second quarter of approximately $1.6 billion, of which approximately 50% is expected to be service revenue." I read that as closer to $800 million (i.e. flat quarter-over-quarter) than the drop they experienced.

I absolutely did talk about service revenue dropping sequentially. And you're right that YoY it's down a lot more.  It is disappearing as I was talking about prior to the BB10 launch, back when everyone was mad at me for suggesting service revenue would drop big time.

I must have missed the part in this article where you discuss service revenue dropping. You have been proven absolutely correct in your forecast the drop would be large. To lovekeyb's point (and to the point of those who either disagreed with your prediction of service revenue falling off a cliff or else had a time horizon beyond an anticipated few quarters of transition) it will be interesting to see if BES10 adoption, along with any growth from new and existing sources of service revenue will slow down, stop, or reverse the trend of declining service revenue. TH said in his last conference call that his intention was to grow service revenue while acknowledging things would get worse before they got better. Well, he certainly got the first part right so now how credible will he prove to be on the second?

It's a hard business to be in. I'm not feeling too much either way. It's a phone. BlackBerry Z10 Superphone. Original gangster.

I sure hope that it doesn't go away. But I will be using it till it dies.

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Chris as usual great article. Like a few posts before mine nailed it. It seems like all this was done purposely. The sequence of events is way too fishy.

Posted via CB10

Again and again, no apps no business.

How many 1st rate apps developments could have been on board if they had on paid 1, 2, 3 or even 10 million a piece.

There f#cken stupid as$holes with sh*t for brains, each and everyone of them. Now they've spent billions and have nothing.

Posted via CB10

With these results I guess it must be inevitable that BlackBerry will be leaving the hardware business. So sad.

Whether BB10 is good or not, whatever marketing is effective or whatever - whether BlackBerry is the best; bottom line: the market is not interested. For whatever reason.

These results are diabolical. BlackBerry is bleeding.

Really - this is not right.

Posted via CB10 on my BlackBerry Q10

Sorry for the repost, it was just easier.

First of all I would like to say I feel sad for the current PlayBook owners, what a low blow to the stomach.
I have forced myself to hold back on purchasing the PB until it was reported and confirmed by users that the BB10 for PB download was official and accessible today.
BlackBerry seems to have made an important long term stand regarding its future direction (as of Friday) I believe BB has given up on the consumer market and is going back to its roots, concentrating solely on its corporate clients and reinforcing its mobile computing security networks.
Other than the curve, I fail to see any other major consumer market share for BB and with the introduction of the not so low cost Q5 handsets, this curve market share will not continue over to BB10 period.
So it's time to face reality. If you are after popular consumer apps and updates, go to another platform.
If you want security, email, qwerty keypad, one handed use, multitasking and balance, stick with BlackBerry.
I'm getting a Q10 or a Q5 as these to phones fit my needs of size and a Qwerty keypad. Android, iOS, windows etc do not offer me an alternative and at this point in time that's very fortunate for Blackberry indeed.
I've had a good time with android and feel its now time for me to move on and sample what else the world has to offer. I have absolutely no brand loyalty at all and I intend to continue that into the future. Windows phone 8 is currently on my radar and if I see future compelling products, features and services, I will move to it.
Once again bad news is hard to take so I salute all of the blackberry faithful on this forum and around the world, you deserve more for the loyalty you have shown BB.
Companies will realise one way or the other that, the people hold the power and all great empires fall, even the mightiest.

Is QNX not contributing any cash flow into BB? Why is there never any mention of all the vehicle deals that are in place?

There is -- "under software and other" -- $80 MM this quarter from BES, QNX, etc. QNX is probably 5 MM $10 MM per quarter.

I had a theory, back in January, that the renaming of RIM to BlackBerry was to protect some intellectual property, in the event that the smartphone business fell apart. The fact that we don't hear about that may lend some validity to that - QNX may live on, on it's own. Maybe they didn't become a de facto part of BlackBerry the company when the transition took place.

Like they say about anything, if you can't make it in New York, you wouldn't be making it anywhere in the world. New York is the great iApple, that people can't change, they want to keep old dress up phones and call them NEW innovations.
note: I have a Z10

Blackberry is the biggest scam ever: was a great company but now everyone inside wants to wet their beaks at the company's cash while making foolish decisions. This is stupid, arrogant and greedy behavior.

The psychological impact of announcing the advisory group had a direct negative effect on consumer confidence and hence sales. That disclosure, while probably prudent for a publicity traded company effectively killed BlackBerry.

Posted via my BlackBerry Z10

Don't forget the BES 10 numbers include test servers. I don't think a test server means a thing. If I'm desperate enough I might be giving these test servers for free just to get my foot in the door. Maybe I can change their mind. "It's free! Just try it. You might like it." In the end I take it back if they won't purchase it. This report is very bad. I don't think the BES 10 increase means anything. Sorry to say it but it's looking very bad.

The fact BlackBerry has to provide FREE BES10 test servers fully installed and configured means far worse than many in the delusional CrackBerry Nation are willing to admit. Management killed BlackBerry, the brand, without assistance from any market forces or other external actors.

A simple equation - poor marketing yields poor sales. The Z10 never had a chance. I hope that the Z30 does... or its turn out the lights.

I just want a Z30. Damn you BlackBerry. Stop failing, i'm still a pretty new BlackBerry user and I don't want to go elsewhere. AAAAAHHHHHH.

Posted via CB10

Management dropped the not hiring unix/qnx developers and abandoning what it was done based the playbook, starying from scratch again back in the spring and summer of 2012 caused a delay that cost them to miss the biggest sale season of the year for the launch of bb10 by 2 months! of course it impacted sales and the biggest exodus from blackberry to other brands because blackberry didn't position itself on the market on time

The total failure of BlackBerry is astonishing. Thorsten Heins and Frank boob-whatever his name is should be ashamed of themselves; for they are completely inaffective at their jobs. But of course they don't care as long as they are paid well...and they are. Shame on the BoD also....they failed too. All of us who cheered them on and bought bb10 devices expecting a fight are now made to look foolish for supporting such a disaster of a company. All those who were laid off have had their lives flipped upside down have management to thank. I lost money from the stock, but it's nothing compared to losing a job. Funny, everyone seems to lose except TH with his millions... what an A hole.

Posted via CB10

im not blaming Heins alone. i am blaming whoever hired him.
The CEO that cant sell water in the desert ( i will trademark that phrase to be used exclusively for TH )

I've said it before and I'll say it again. About 3 years ago bbry needed to slap on some cologne and try to woo it's way into the Android bed... at that time the security flaws and general haphazard android OS feel could have benefited greatly from the BBOS and the innovation of the Google guys could have turned BBOS into an amazeballs overall OS... both groups could have licensed the joint OS and BBRY could have had the corner on the premium market hardware as part of the deal. That was the win-win. that was the way forward. that would have blown out iPhone a few years ago.

But as these things go bbry was too cocky. Android did what good tech does and won the race to the bottom and bbry went all in technically with BB10 but didn't go all in strategically... which is evidenced by, well every single crappy thing that went wrong during the BB10 rollout, from delay to crappy apps to piss poor marketing. And while I think BB10 was the wrong strategy, if they had gone all in on that strategy the results would have been better, not iPhone or Android great, but relevant.

And thus we end up here today. Hoping against hope that bbry can survive in a niche space and keep us from all looking like a total losers as we cling to our beta max device... I choose blackberry now and forever... even if forever ain't that far away.

Posted via CB10

Since only 62% of phones sold in the quarter are being counted this quarter is a large part of the revenue drop not due to that?

2.2 million out of 5.9 being counted is a big chunk of unreported revenue...

Posted via CB10

Anybody know what % of the Z10 inventory value was written off. Certainly it wasn't written of 100% to zero value?

Posted via CB10

It's all so unbelievable.
Considering all of the facts, the demise of BB10 should mean that no other company could possibly release their own phone and OS and survive. So what, that's it? Android and Apple for eternity? I don't believe that. From everything I've heard in the last 2 years, the smartphone population wanted BB to fail for some reason. This was never about specs or apps. There will be a #3 someday, and its success story will be the final chapter in BB's biography. I can't wait to be made fun of for my Z10 I use the next 2 years, just like the previous 2 years using my Curve waiting for BB10.

Posted via CB10

Z10 user and proud. I'll be upgrading to 10.2 and laughing at the scoffers.

And I'll be there buying the Z90 when it arrives.

The Sun is shining bright for these Dudes!

The remaining compensation packages for BlackBerry’s senior execs, in the event of a takeover, are:

— Frank Boulben, chief marketing officer: $7.7 million U.S.
— Kristian tear, chief operating officer: $7.4 million U.S.
— Brian Bidulka, chief financial officer: $6 million U.S.

And of course Thor and 55 mil. Oooh, and the new Jet. So they can ferry these guys back to there original countries with the loot!

Don't forget to mention they have to be fired first by the new owners to get those packages and theres no guarantee that will happen.

I now doubt BBM cross platform will be not be launched, however, if it is, not until after Blackberry is taken private.

Curious to know the sales statistics after BBM cross platform announcement. Particularly in Asia and Afrika, I think someone who push this idea is exactly know to hurt BB from inside.

Posted via CB10

Thorston is coward. So as the RIM management. These guys destroyed the company and will run with load of cash as golden package.

Posted via CB10 with Q10.

Jim balsillie fucked up! Wonder if he is still using that blackberry with the wheel on the side of the phone.

Posted via CB10

Wonder if he's still using a BlackBerry even? Why do you say Balsillie screwed up?

--Q10 and Canadian all the way! Posted via CB10 on 10.2.0.1443. #IChooseBlackBerry10

This is a naïve comment but as I am exasperated by how crappy BlackBerry is doing, let's not forget to subtract 55 million dollars that Heins will get for all his troubles....

Posted via CB10

Hey, you actually spelled naïve right! First time I've ever seen that on the interweb. Most people are too lazy to hold down the i key for a few seconds and tap ï on the screen.

--Q10 and Canadian all the way! Posted via CB10 on 10.2.0.1443. #IChooseBlackBerry10

The issue is how long it took for a good OS. Anything before 10.2 is sub par to the competition.. I hear you on the apps too. But i really think it starts with the OS.

Posted via CB10

This might sound like a conspiracy, but what are the odds that Apple used some of its large cash reserves towards shorting blackberry through hedge funds, then putting out negative press in media. It would benefit them to see BlackBerry die while at the same time profiting off its decline.

Posted via CB10

It's a good job the new phones are great, think what the figures would have been like if they were bad.. or on second thoughts it probably didn't matter anyway. The fact is the new phones came too late.. they were never ever going to sell millions of phones at a price point just below the iPhone. I chose the z10 over the iPhone for many valid reasons and I don't regret the decision. I just could have bought it a lot cheaper if I had waited several months.

Posted via CB10

Hey Chris it would be worth checking on the license payments / arrangements, i.e are they paid upon manufacturer, sell in or sell through? Some of this could be reversed if they actually scrap the Z10 s, which I doubt they will. That said I am sure PW will use them to gain market share in some way or other as it looks like the licensing fees and cost of good s for those units will be a freebie to him.

Posted via CB10

I don't believe bb10 was a mistake I like the os, the mistake is the lack of app get rid of BlackBerry market and use android market, have BlackBerry market as an option like Samsung has its own app store along with the Android market, no one uses Samsung app store. But still it's their, if rim had implement the same idea I believe the outcome would have been different. Like the fall of the palm treo phones it looks like BlackBerry will soon follow,

Posted via CB10

You can only use the Android App store (Google Play Store) if your using Android with it's built ins like Google Maps and Gmail. Samsung is running Android. All they did was make a customer launcher and customized it. Basically what BB should have done. Then they wouldn't have to build anything but the features that separate them like BB Balance and the Hub. They would have had the apps + the Google maps and all the updates that Google has been adding over the years to improve Android. Instead BB had to do it all. Make an OS. Market it, and court developers. Beg the big ones to make apps on BB10 which didn't happen and make the hardware. Essentially going "all in" on a game of high stakes poker. They lost. They thought they had a better hand then they did.

So BlackBerry is completely f!#ked is what your saying, I'm an Android user, but I bought the Z10 when it came out because because I love the OS and just sold it to buy the Z30 when it comes to Canada,I was going to get rid of my Note 2 as well and go completely BlackBerry but not anymore !!! No-one has a good God damn thing to say about this company so I'm for going BlackBerry, I'm sick of Android and one NEVER be caught with an IPhone and be classed like the rest of silly people that stand in those ridiculous lines to buy the exact same phone, save for minor updates and a stupid color as the year before and the year before that...lol. Android it is for me, something is better then nothing when comparing to BlackBerry or IOS7.

BBRY is not as bad in shape as many believe despite the quarter’s results. BBRY was victimized by all the complete nonsense spread about the company. Many opinionated articles were written about BBRY’s doom and gloom, making opinions sound as if they were fact. This “ALONE” wrecked BBRY’s BB10 sales.

You have carrier’s workers misleading potential BBRY customers into not buying BB10. You have many USA carriers pushing iPhones because of the rumour that Apple has given them an incentive to push iPhones and to not move BBRY or Android devices. i.e.: SPRINT anybody.
From here on end, BBRY needs to get into Major Damage Control and Hyper Marketing.
Am I going to get the Z30? Absolutely YES, am I going to recommend BB10? Absolutely YES, why? Because it’s the best mobile platform in existence. The thought of going back to Android and/or iOS is very painful.

In your world BB10 is the best OS. Let just say we forget about apps and let just say your right. The best OS doesn't always win and some might say it never wins. WebOS was the best phone OS but it had no app and no money and went bust. If WebOS had the backing of Google it would have had a chance to really take off. In the "real world" being the best "OS" doesn't matter. What matters is Apps and getting people to want what your selling. Samsung is the perfect example of this. Samsung spent 401 million marketing Android devices in 2012. http://www.imore.com/samsung-spending-ludicrously-amounts-money-advertis... You could have the worst OS but if you make people want it and you get the developers to make apps your golden. At least for the moment. Then later you could end up like BB.

About the new Prem Watsa/Fairfax era. Remember this is a private equity firm. They will have no allegiances, no social concern, no preconceptions, no qualms, no sentiment whatsoever. Their investment must simply work--AKA produce a reasonable ROC/ROE (return on capital/equity. Most likely, at the very least, that means Heins is out (if not immediately, I'd say a year max). Probably 60-70% of the current management team will follow him out the door, perhaps more. If licensing out the OS makes sense it will happen. If selling off the patent stock makes sense, that will take place too. If QNX starts looking like a crackberry pipe dream; you know what will happen with that unit too. There'll be no sacred cows. Maybe there'll be no BlackBerry left either. That is just the dire reality of the situation which has befallen the company.

Posted by the inimitable Z10 handheld system

I'll say this... Its saddening as a fan to see BlackBerry bleed like this. At this point, even BBM is in jeopardy. No one outside of its fan base wants to be associated wit BlackBerry. I saw this coming with BB7 when they continued to not make changes to BBM and the hardware. The Bold 9900 is still my favorite of my past BlackBerries. However, think of how flawed it was. No front camera, 8gb of storage, weak battery life and overall, just like every BlackBerry after the 8300 curve, LATE to the game. BlackBerries delays and marketing were it's key problems. I don't see BlackBerry commercials AT ALL. Go to any store and BB10 products are pushed to the back. Some say they needed to adapt Android... I say they were 5 years too late. They could've build on that given that they make great devices. I have a Z10 and Q10 and I love them both. At this point, BOTH devices should be free on contract and the Z30's price should be slashed drastically. Convincing ANYONE of sound mind to buy a BlackBerry is and will continue to be a hard sale. Those of you who don't see that BlackBerry is headed for PalmWorld are sadly blind and mistaken. I'm a HUGE fan... Have been since the 8100 Pearl, but this is the end my friends.

"Men's Fashion & Lifestyle" BBM Channel: C001214D9

Thank you for this comment. I have been a true and real hard core fan since tinkering with ny dad's BlackBerry with the spinwheel. I finally got one of my own in college, the BlackBerry Bold 9000. I was in heaven. But sadly a lot of these people can't admit that we have been taken, like fools, for a ride. Especially lately. I'm in the process of moving on. If I can only sell my Q10 and Z10. I'll even sell my Bold 9900 if someone will purchased. But guess what? NOONE is interested. At all!!!

Posted via BlackBerry Z10

Sell your BB10 phones? Why on earth would you do such a thing? Despite all the doom and gloom nonsense, they are not going anywhere, but up.

Thanks for your view of the earnings today.

One thing that has been mentioned but not discussed is the way the roll out in the states was handled and poor marketing of how different BB10 is compared to the legacy OS

Let face it. Sales come from perceptions. People still perceive the BlackBerry as the Bay st/ Wall st professional phone. BlackBerry has failed to relay the message that anyone can use the new BlackBerry 10.

I am in the tech industry and use smartphone technology to allow clients to control their equipment remotely. When I ask many clients what type of smartphone they carry. Some of them that still carry curves ant torches say "BlackBerry. I haven't got a smartphone yet?"

The perceptions need to change and they need to use media to show that they have evolved into a competitive force.

Some clients see my Z10 and the BlackBerry logo and they remark. How do you control this stuff without a smartphone? I then open a new email message and start to write them a email with flick typing. Then is show them how to do it. I then tell them their shot comings on a the ios platform.

The end result is they never knew what it can do. Thus the lack of sales.........

Posted via CB10

One more thought on sales. When they released the new OS7 device, why didn't they just make the same device like the bold 9900 but the BlackBerry 10 software. Just modify it to mimick OS7. End result would be better performance. Better browser. And a segway to Q10

Posted via CB10

Marketing is really bad for BlackBerry.. Alicia Keys is good but that race car driver?!?! They couldn't get any celebrities, basketball players, etc to promote the brand? When people see my z10 they don't even know what phone it is.. design of the phone doesn't stand out.. i still love my z10, I just hope they still come up with updates after 10.2

Posted via CB10

I almost returned my Z10 when I got it from AT&T. The constant reboots, hub freezing, horrible maps application was too much to bear. Before returning it, I downloaded a 10.1 leak that stopped the re booting and I decided to keep it. Today, I am on 10.2 and my Z10 rocks. I love this phone. It is far better than my old iPhone.

The problem with BlackBerry was that they released the Z 10 with alpha software. 10.0 was not even beta. This turned off a lot if people and scared would be customers.

I don't know if BlackBerry will be able to recover from such epic failure.

Here is hoping the Z30 might did the trick but I doubt it.

One more thing: Not having a home button scares iPhone and android users as they are lost without one. BlackBerry should have included a home button to alleviate their fears. A home button that with one click would take you to the apps drawer and with two take you to the multitasking screen would have been a definite hit.

Posted via CB10

Even if you discount the phones or do a BOGO free offer you have to deal with apps or the lack thereof. Cheap doesn't = value. I'm patiently waiting for 10.2 to see what apps are available to me and actually work. I'm known as the BlackBerry guy but when BlackBerry causes me to look like a fool to clients and friends (BBM) there comes a point like the end of my contract where you say enough is enough. For me that is Q1 of 2015. By then BlackBerry hopefully will have apps I don't have to sideload, a next generation phone worth upgrading to that competes with a then current Samsung or Apple. If TMO had come out with the IPhone 5 one week earlier I might not have gotten a Z10, I originally wanted a Q but couldn't wait that long and until the ecosystem exist those folks that switched to other phones are not coming back. Only smart phone I have owned is a BlackBerry. Prefer it over my wifes previous Samsung and Iphone 5 but BlackBerry management is Col. Custer in a suit.

Before today, I thought BlackBerry was just in a small slump. Now I am seriously concerned for the company. This is so sad. I've always been pulling for BlackBerry. :-(

At some point I really thought they were just going knock it out of the part, that just might be the worst of it, that they didn't.

Posted via CB10

I think that this last minute buy-out offer was timed perfectly. Do I think it will go through? Absolutely not. Do I want it to go through? Absolutely not. The thing that has bugged me since the release of BB10 was their weak marketing strategy. They have solid devices, and an OS that is better than any other OS on the market. I believe that the hesitation to deploy an expensive marketing campaign might have been based on the fact that BB10 was released in a "beta-state" Blackberry needed to release these devices, and fast because they saw what they were up against. Now that BB10.2 OS is coming out in October, I see no reason why Blackberry would hesitate in deploying their marketing campaign now. They worked out the kinks, in the initial release, and all of their new BB10 devices are just about out after the Z30 hits the United States. It would be economical for them to use their advertising dollars to promote all of their devices, with BB10.2 as the focus. Blackberry also might need to start selling their devices unlocked on their official website. Carriers like Verizon who are locked into monopolizing contracts with Apple where they need to sell 74 million iPhones 5's by the end of the year or they will owe Apple 14 billion dollars. This is creating a bias towards other device manufacturers. Maybe Blackberry needs to reach out to more affordable carriers like Tracfone, Republic Wireless, or other paygo services that will make smartphone ownership more affordable. Sometimes it's not the phone, it the monthly bill that hurts smartphone sales. Blackberry has the opportunity to do what Apple's ego prevent them from doing by developing strong partnerships with smaller carriers. The idea is to get these devices into as many hands as possible, so that more people know and understand the benefits of the new BB10 OS. If that consists of selling their first gen phones at or slightly above cost to stimulate interest...they might just have to do that. I am hearing alot of complaining about Apple's new ios7 and that is great news for Blackberry, but they need to act fast and let the world know that they have a suitable alternative.

Its crazy. My Z10 died on me and was a good time for me to switch back to Apple. It fact it happened almost immediately before the announcement of its sale to fairfax. Its almost like a sign for me to just rely on the trusty iPhone. Blackberry users should just try it. I tried to use Andriod and hated it. I did not hate BB10 but IOS 7 is much better. Its just about making that move. BBM on Iphone is not causing any stir, not enough to save them.

I will wait till they recover before buying any new BBs.

Could it be because they gave up Bis. They loss tons of revenue to bis.
In another time, bb10 and z10 is a great move, however. Samsung had the momentum.

Posted via CB10

Stock still taking a hit because there is no indication Watsa has even lined up the financing yet.

Bad news.

Posted via CB10

I've had a bold, torch and renewed my three year contract BEFORE I found out Canada was switching to two years for the z10. Big mistake. This z10 main and only function is for communication, and giving that blackberry stated it's for "hyperactive users" is a total lie. The number of quality apps is minimal to non existent. Not to mention the lack of support from developers for their games. I've not seen a good or in most cases NO update for any games that I downloaded since I got this phone. Which was back in April. Not to mention the native apps, such as the social networking sites, music, picture, and video are horrible!
I'm not going to go through all the amazing features of the phone, since very one here knows it, but clearly ppl won't accept the fact that BlackBerry can't step up to their own standards.

Why would any one want to go with blackberry when they can get a better experience with Apple or Android for the same price. I've always wanted blackberry to succeed and even got a few friends to switch from apple to BlackBerry, but paying this much for a phone that can barely do more than a pay as you go phone is absurd.
3 years is way to long for this, last phone from bb, ever!

Posted via CB10

As a past BB user who visits this site from time to time. All I can say is HOLY CONTRIBUTING TO THE DELINQUENCY OF A MOBILE USER BATMAN ! I can't believe that BB is in such bad shape. What the heck happened while I was gone?

Apple is doing exactly what sinked blackberry... nothing new from them they think they are th best... like BlackBerry did... its just an question of time before Apple get in the same situation. I'm sure of it.

Posted via CB10

Who is being innovative? I'm seeing some cool stuff from the Windows people...but BlackBerry sure has some patents that are hard to beat!

Posted via CB10

Fuck all haters... fuck all disbelievers... love BB10 and my Z10. my bro just got his hands on a Q10... and loves it... sorry for the offenses

Posted via CB10

They need to become much more aggressive about getting existing BlackBerry users to upgrade to the new hardware. Eventually these people are going to upgrade, if a large number don't get BlackBerry 10 devices its going to be very tough to keep this going. There are tons of Torches, Curves and 9700's out there and Samsung and HTC are literally paying sales reps to push their products. Consumer and Carrier incentives might slow the rate of defections to other platforms long enough for some positive buzz to be created about BlackBerry. As opposed to the almost never ending stream of negative news.

Posted via CB10

I've grown to hate BlackBerry. It's crazy cause I used to be their biggest supporter. It's funny how things can change so quickly

Posted via CB10

Well done and nicely explained. BB are in deep doo doo and cannot sustain themselves for many more quarters at the present burn rate without some good news. Going private is not going to solve their problems unless they can cut heads quickly and make a decision on their direction as Chris has aptly pointed out. This cannot wait till 2014 but has to start happening now.

Ad campaign
Apps
Price
Playbook
Alicia
F1
Promises
No debt, money in the bank
CEO
... they call me hater, funneh.
If "they" are sheeps, well...right now we are anything but a bunch of fucking lemmings.

Posted via CB10

when you don't produce a polished device and don't market your product how are you supposed to sell it!

Posted via CB10

what a stupid analysis. please lets go step by step shall we?

Firstly, Gross margin less expenses are net profit and these expenses include 1billion write off...though they wouldnt had made a profit but could had made a loss of less than 10cent. maybe 10cent profit. i havent seen the total expenses but just minus the write off value from expenses than you shall see what i am saying

secondly no one writes anythng like they did...ofcourse they shall loose cash like this...rather than writting it down they could have transfered it to next quarter as everyone does..apple samsung dont write down unsold stocks...it was a stupid decison. cutting those 4500jobs do make a sense but cutting heins job makes the perfect sense

Chris, you state that pre-tax loss disappoints you given that you expected that excluding the inventory writedown would have rendered a more break-even result. I think you're not looking at it correctly.

Pre-tax is just that: results before taxation and not also before (one-off) writedowns. In case of losses, pre-tax result is actually often worse than post-tax result, because losses result in a tax income.

The writedowns come before the pre-tax result and, judging from page 3 of the press release, it was actually taken in gross margin. They show that adjusted gross margin would have been +570 instead of -374. In the same way, pre-tax result could be adjusted for one-offs from -1438 to -494. Still not good, but at least less bad.

The problem with blackberry is they don't listen to the consumers but rather give them what they think they need!

Posted via CB10

Not good. Hope they can turn it around. But if ultimately they can't, at least our phones still work right? For as long as we want to stubbornly hang onto them.

Posted via CB10

i think most of the problem came from being late and have very few apps.. once the general public found out that there was a lack of apps that was the beginning of the end.. in hindsight they should have launched a year earlier and launched with apps that people want... obviously that was not a possibility but i can dream..

When are we going to have an interview with Thorsten Heins?

I always feel that when things are going terrible that's when you grow some big brass balls and keep fighting .

This is the time to talk and reassure the BlackBerry customers that we are not going the way of Palm and Nokia.

BlackBerry is here to stay!

BlackBerry....Get it done!!!

Posted via CB10

Keep telling yourself that. Loads of people are starting to not buy that propaganda any longer.

Posted via CB10 on my white Z10

Although i love their devices, I'm starting to become tired of BB and their inept business model. They are too slow to move on anything and when they do, it becomes apparent that they know shit about marketing. They can't even get their OS 10.2 act together. Oh that's right, they released leaked versions without full functioning features and fanboys of BB are all raving over them.

BlackBerry, you have proven yourselves true Canadians.... dumber than a tree stump.

Posted via CB10 on my white Z10

Hi CB , could u pls reply me.Should i buy new BB phone or not ,im asking this coz there are news going all around about the BB company,this has made me confused , as i liked the Z10 and now Z30 is great ,only thing is regarding the News floating around.Will BB the once Giant and Jewel of smartphone be back .Pls do reply.

Well... my advice would be to stay away as far as possible from os10 devices, but if you really want some I'll gladly offer you my $650 Z10 in exchange for ANY +/- $400 JellyBean smartphone ... no I can't, just stay away.

Posted via CB10

Thanks Chris, a good read which I appreciate you not sugar-coating.

BTW, I'm glad you've returned to writing "analyses" instead of BB PR puff pieces. If I wanted to read blindly enthusiastic reports, there's always the CB forums. ;)

Thanks to OS10. Let me add to another decline of BlackBerry market share. I am giving my dollars to galaxy Note3.

Amazing! Yesterday I called Vodafone Spain to buy a Q10 (or Q5 depending on contract conditions) and I was told they don't have neither Q10 nor Q5 because Blackberry is not delivering devices to them. I was told something like... "You know, Blackberry is having bad times now... So who knows, perhaps we won't have these devices anymore..."
Is this a carrier's fault or a real Blackberry fault? This is what really makes BB struggle!

Man this sucks! Sadly this cannot go on indefinitely, and I have to resign myself to the reality that unless there some 11th hour turnaround, BlackBerry will probably exit the hardware business which it would have to in order to survive at all.

I cannot understand what the mentality of upper management is like at this point in time! They were primed back January to have a good launch for BB10 and all the devices instead they screwed it up soo badly! Why the hell didn't they go with the Z30 and the Z10 first as the launch devices and left the Q10 and Q5 for last? They would have had a leg up on both Samsung and Apple!

And don't get me started at wasting precious scant resources on a "new" legacy device operating the BB7OS, now becoming as useless as George W. Bush's memoirs (more like brainfarts in his case)

The BB10 OS and the accompanying devices should NOT be doing that badly! A wonderful piece of ingenuity and creativity was undone by a lackadaisical attitude at the top. I am convinced, as much as a civilian like me can be, that the downfall of this OS and it's devices was a terrible lack of marketing, piss poor execution at the product launch stage and an almost jarring lack of brand awareness!

I said this a thousand times and I'll repeated it ad nauseam, IF consumers are not aware of your products and what your OS is all about, they will not bother, instead they will spend their cash on a gold-plated idiot proof IPhone 5S or whatever iteration the new one is, or if not on the IPhone 5C which looks like it's wearing Krocks with its cheap and pathetic looking casing...but people still line up at Apple 's temple-stores because even with its waning fortunes, all IShit junk is still seen as "must have " whereas BlackBerry products are seen largely as irrelevant as the company itself.

As for Android devices such as the Samsung Galaxy S4, if you were to believe their marketing, that phone is so advanced, it will wipe your arse while you text, talk and browse!

No matter how much enthusiastic people are even at this late stage, about their BlackBerry devices, it is almost pointless when the company itself seems to have given up...

Thorsten Heins Ketchup and the Cryptkeeper aka Pringle Watsahisname as well as their predecessors the Two Clowns Of The Appocalypse Lazaridis and Balsilille are guilty for this clusterfuck and the ensuing misery of employees, customers and investors.

To these numbnuts and nitwits I raise my middlefinger in a putrid salute!

PS Are we EVER going to get some good news for a change?!

Posted via CB10

If you think the Apple 5C is bad, consider that the 5S is just a warmed-over iPhone 5 with a fingerprint reader that doesn't even work. Apple has become the king of hyperconservative incrementalism and no longer has any game worth paying attention to. The fact that the market is moving towards phones with phablet form factors and Apple refused to bring out a phone with just such a form factor tells me that Apple just dropped the ball, big time. The market now belongs to Samsung, and I don't like their version of Android.

The thing I worry about is that the Z30, as good as it is, may end up being a stillborn product because if Prem Watsa doesn't buy the company, Blackberry will be deader than a doornail before it even gets a chance to really ramp up distribution of the Z30.

I think unlike Blackberry, Apple produces exactly what people want. So much hate here, don't buyit if you don't want it, after all it's just a phone. If you really want to see a "new" flagship phone without any additional features except a larger screen, then look no further Z10 -> Z30. That's "asleep at the wheel" for me. The 5s has a completely new and groundbreaking new Processor and graphics that rock every benchmark (minimum of 2x faster), improved camera, touch sensor (that works extremely well, every reviewer is raving about it,where did you read it doesn't?), and a refreshed OS. My Z10 dropped in price like a stone. I paid $700 on the first day of sales and now? Price is half.

I am not sure about the phablet stuff. There is clearly a big market but I personally find the Z10 already borderline big.

Currently I use these phones in rotation: Samsung Galaxy Nexus with 4.3, Z10, Nokia Lumia 920, iPhone5. I am using mobile phones since the launch of the GSM standard in 1992 and except Meego, used probably every mobile OS under the sun. I work in technology. I really like the Z10 for it's messaging prowess and absolutely first class keyboard. I like the peek and flow, but using any app, is just "ok". Once you use the same app on Android or iPhone, you see how much they suck on BB OS 10 and also Windows Phone. Thankfully at least on Windows Phone there are exceptions where at least you get feature parity slowly.

I am not sure Blackberry can pull itself out of the hole they dug themselves. I was so hoping that with OS10 they can make a great comeback...sigh.

Anyhow, coming back to Apple, I think they do everything right. Next year you will see a larger form factor in addition to the existing ones. They will continue to lead in "useful" feature innovation. I see no reason to write them off. The "s" update was always incremental and this time the knocked the ball out of the park, I didn't expect them to put so much new stuff in the 5s.

Thanks for another interesting article Chris.

One thing I'd like to clarify is your discussion of sell through and the assertion that BlackBerry 10 is in decline. Specifically, I wonder if it is to early to conclude this:

There is no denying that sales haven't gone well, but many customers would be put off making a 2 year commitment to a product whose parent company has an uncertain future. As such, given the news and media attention to Blackberry's problems (which didn't exist in Q1 of BB10 launch), it is only natural that sales would have declined as a result of this news. If and when talk of stability becoming the dominant paradigm, this metric will become relevant and comparable to Q1 once again.

@vjvj
Also do sales usually explode in quarter 2, far removed from the holidays? Isn't it usually the other way around? There were many reports indicating that iPhone 5 sales were disappointing overall this year, including quarter 2, although since that device has been successful it's a slightly different conversation.

Posted via CB10

I have to wonder at the acceptance of an offer to sell before the release of xBBM and BB10.2. BB10.2 is going to solve a lot of the app situation that has kept users away, and xBBM is going to be the foundation of a xplatform userbase that could potentially be a major revenue stream once channels goes xplatform and is monetized. I do see that the company was bleeding cash pretty bad and that's unfortunate, but I would have thought that they would wait till all of their cards were played before saying yes. Especially since both items (xBBM and BB10.2) will help drive handset sales.

Posted while peeking and flowing on my incredible BBQ10!

My last comment. You have to remember that BB10 was delayed till it "was ready" which went from Sept or something of 12 to Jan 13. When it came out it still had bugs and was missing some of the major stuff that 10.2 should have. In a perfect world they could have just released 10.2 right now as there 1st BB10 devices and maybe the reviews they got would have been much better than the reviews it got back in Jan but then it would have been 09 or 10 more months later which was already 4 months late. Brass tax. It was too late! I can't stress this enough. The OS market is based on APPS! The App market is based on ESTABLISHED players. If your OS wasn't around in 2011 the support isn't going to be there. I would say it's safe to say that native apps are currently the ONLY way to get beautiful and fluid apps that showcase the OS. Native apps take lots of money and time and developers are NEVER going to invest in new phone OS Platforms unless paid large sums of money by that platform or that platform has a HUGE user base. Essentially that means iOS and Android. Now if your company has a money shrub and you can go out and pay off the developers you may get them to build apps for your platform. Microsoft is the only company in this position because they make lot of money from a many different products. Even paying off these developers only works to make the app. Unless you start getting lots of users the app may not even get updates. Lets face it. The only way this changes is if HTLM 5 Apps which could work across all phone OS's can be made to be as beautiful and as fast/fluid as their native counter parts. That would mean the app for iOS looks and runs just as good on BB10. We are very far from that day and until that happens Android, iOS, and probably Windows phone are the only major platforms for the foreseeable future.

This comment is usefull for c rack berry readers.... the rest of the world sees an whole other message. BlackBerry wil stop to exist in less than an year. that's why selling are dropping!!!!!!!!!! No body buys a device when the company is no longer around to give support!
If there is any support outside the US... support to me is, being able to contact the customer service in you're own country in a language jou easy understand. carriers are useless, the don't bother to dig in to the functions or hardware is other phones are selling themselves by popularity.
The discussions on this forum are enlightenment to the fans, BlackBerry cannot survive on just us.

Just my opinion from outside in the dark..

Kind regards
Marco (Dutch)

Posted via CB10

Not sure if everyone read the extensive piece in today's ROB on the 'Fall of Blackberry' but it seems pretty clear from reading it that the decision taken by Heins, Boulben etc to go to market with the Z10 rather than adhere to Lazaridis's advice to stick with their competitive advantage in Qwerty keyboard models was a huge mistake in strategy. Although the current trend is still toward BYOD, perhaps if they had stayed true to their competitive advantage, rather than trying to bring yet another touch screen to market, they may have been able to carve a strong niche. If Watsa is successful, Heins should be dusted, along with Boulben and Tear.

I have noticed a deeper penetration of q10 and q5 phones in India than what is being touted by BlackBerry or the media

The z10 penetration was low but I have noticed that my business and personal network has rapidly moved to BB10 after the launch of the Q5.. in any business seminar in India you will have 90% of the crowd holding a BlackBerry with at least 30-40% now holding a BB10 device.

So do you think that BlackBerry is purposely sandbagging numbers in an effort to go private?

Posted via CB10

I think the turnaround will only begin when Fairfax takes control of the company.... and they need to remove TH... and get a better person with a better vision

Posted via the awesome Z10 STL100-1/10.1.0.4633

They should have provided Blackberry users with an improved version of the 9900, using the new operating system and WITH A TRACKPAD. I am sure that many users like myself would have switched to that phone. The typical Blackberry user is a professional who uses the device for business. Excellent product. I am not interested in "Angry Birds" and any other nonsensical apps. In fact, the fact that Apple has 300,000 apps. is stupid. No one can have 300,000 excellent programs. Most are garbage. The typical Blackberry user wants a physical keyboard. What they did was insane. First they come out with a Z10, which I would never buy, then they come out with a Q10, without a trackpad, which I would never bad. In fact AT&T reps have told me that most people who buy a Q10 return it. What's was wrong with Heins, only God knows. Address your base first with a product they like and then, if you want to compete with Apple, come out with the Z10. Those obvious mistakes explains what happened with the last quarter.

Aside from the delusional fanbois the only other person thinking "things are not too serious" is Christopher "Robbin" Umiastowski. Either BlackBerry senor management in collusion with the BlackBerry Board of Directors deliberately engaged in fraudulent activity or BlackBerry senior management and the Blackberry Board of Directors are the most incompetent group in corporate history. Take you pick.

Dont wanted to believe it... but it seems this time they are really done for.... at least hardware wise.

People alreayd forgot blackberry and are riding the hype train of Samsung hardcore.

I just hope that Blackberry keeps supporting the BB10 OS in the existing active handhelds..... and after that..they can go out if theyw ant.

I just dont see they making more BB10 cellphones after this horrid debacle and bleeding.

Is there a financial tipping point when things just going into an irretrievable melt down? It must be close if the decision has been made to sell the Company. Now it's just a point of getting the best deal possible and hoping the new owners don't break the company up.

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