Some key thoughts on BlackBerry Q4 results that just hit the wire

By Chris Umiastowski on 28 Mar 2014 07:44 am EDT
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A few minutes ago BlackBerry issued its press release with financial results for Q4. As usual it’s a good news / bad news situation, and the conference call is in less than half an hour. I’ll come back afterwards with a more detailed review.

Until then here are a few things I noticed.

Revenue was weaker than analysts expected. Consensus estimates were $1.11 billion but the company generated only $976 million. That’s a 12% miss, suggesting revenue is falling faster than the Street thought.

Operating expenses were cut very significantly in the quarter, and this is good news. Last quarter R&D and SG&A were a combined total of $865 million. This quarter it dropped all the way to $601 million.

They are still burning lots of cash. Cash flow used in operations in the fourth quarter was approximately $553 million. Their cash balance is $2.7 billion, down from $3.2 billion last quarter.

They didn’t sell a lot of BB10 hardware Sell through of hardware was 3.4 million devices, of which 2.3 million were running the legacy BlackBerry 7 OS. Everyone can do the math here. They need to do something to accelerate BlackBerry 10 sales if they want to stay in the hardware business at all.

Guidance is for cash break even by the end of the current fiscal year. They are reporting Q4 F2014, but they are in the middle of Q1 F2015, and they are targeting cashflow break even by the end of this year (year ends February, remember). That’s all they had to say about guidance, which suggests revenue has further to drop.

Looking forward to the call …

Topics: BBRY Editorial

Reader comments

Some key thoughts on BlackBerry Q4 results that just hit the wire

161 Comments

Why? BlackBerry is not doing anything to help themselves. Only selling buildings and laying off employees. They are selling BB7!, that is bad!, BBRY should throw all the BB7 to the garbage can now!... Put cheap BB10 and put a god damn tv commercial explaining BB10 is not BB7 to stop ignorant people confusing BB7 with BB10... BBRY is its own worst enemy.

not really. I encountered a woman yesterday and she didn't even know Blackberry had a new full on touch screen device. Gave her a whirl of my Z10 and she liked but she hasn't seen anything anywhere to say this phone exists and what it can do. Blackberry needs to step up their marketing...not just for commercial but for business as well.

Those buying legacy are business and government clients who need no frills. The only consumers buying legacy would be those replacing existing units on cheap BIS.

Agree 100% about the marketing.

If you're in the US it isn't the marketing and it isn't the devices.

It's the cost.

Until BlackBerry gets the unit price to the carrier of its devices in line with Android, no carrier is going to sell they device.

They can market them all they want. It won't make a difference.

But at least you can now buy all the devices online from Shop BlackBerry - if what Mr Chen says is true.

Seriously...its the cost? Clearly you have no clue cost to carriers of smartphone brands. BB is NOT that far outta line. What BB is...is outta position to negotiate with carrier about subsidies and alike.
Second...its IS marketing. Plenty of folks have NO CLUE what new products of BB are...let alone how to get one? There are very few VZW stores carrying BB products in house that work for customer to get a feel for. Since VZW has the BS exclusive...the average consumer shopping for a new phone can't get a feel at AT&T, T-MO, Sprint. So if your a Sprint customer and want to stay..(why I have no idea...but another subject) where are you to get a Z10 or Z30? What about T-Mo, AT&T? How many average consumers know that a Z30 STA100-5 will work on AT&T and T-Mo's network? Hell how many know what a STA100 is?
So let's goto business and govt...birdman is correct. They are buying legacy phones because...A: they do not require or can not use on their systems all the frills. B. Those phones are already approved and setup in their older MDM sytems for easy use.
Both of which are BB's issues to solve. But let's say...BB10 is approved for federal use...say Food & Drug...or Transportation...or hell local state govt. Again...now where do they buy the devices easily? Does the procurement officer fully understand the difference between legacy and BB10 enough to present in meeting with IT and management. Further to explain the cost analysis between the two? Perhaps...but wouldn't it be EASIER if BB made the whole process smoother and simpler?
These are real scenarios facing BB both in enterprise spaces and gen consumer markets. Marketing your product and service relevant to competitors is KEY in any business.

Of course it's cost. Cost to the carrier.

BlackBerry has been selling devices at a loss and they STILL can't sell them cheap enough to attract carrier interest.

Carriers are in business to make money. Not to give consumers what they want.

Ask them in store for the BlackBerrys they have (assuming they have any) if you don't believe me.

Show any sign of weakness and they'll sell you an iPhone or a high end Android. They'd do anything rather than sell you a BlackBerry.

Because they make more PROFIT from selling other devices!

The cost has been taken care of for new subscribers any way. You cannot get lower than free, and that's what VZW was charging for a Z10 or Q10 with a new contract. My S/O picked up a Z30 for 100 bucks in February.

At this point it's marketing.

Posted via CB10

Ok lets just analyse that.

BlackBerry wrote off a bunch of inventory. Now VZW gives away Z10's,

And you want them to market the devices?

Well it would be nice for consumers, but BlackBerry won't be making much money because they'd lose cash on each sale.

They won't stay in business for very long selling phones at a loss.

Until BlackBerry can sell a device at a competitive price to the carrier (i.e. similar to Android devices), and still make some profit, you will not see marketing effort.

Some time later in the summer, when the Z3 is released in the US, you could see deals pushing free Z10's. But only if they're making profit from another device.

No doubt those offers will be marketed. And not just by BlackBerry.

br14,
I am only speaking about US carrier here as I do not have data to verify same for non-US carriers. US smartphones have the similar costs depending upon model among all four carriers. At the high end are iPhone and Samsung models...at the lower end are Nokia with BB in the middle. Now that's cost to the carrier's customer. Carriers are NOT making the bulk of money if any at all actually selling a smartphone unless NOT on a contract. At that point a consumer pays FULL retail cost from the carrier.
Carriers are incentivized to carry and offering subsidy(discount) on the POPULAR phone models in order to lock consumers to another 2 year contract. This enables carriers to make money on DATA, USAGE, DATA MINING for SALE to third parties(read your agreement ALL carrier require you to sign). NOT a phone sale.
Carriers will CONTRIBUTE in the marketing of THEIR phone offerings to compete against other carriers to subscribers. It is true that carriers are losing SOME money on offering discounts on phones but when you actually analyze the deal..the 2 year agreements helps to pay the cost of the phone in most cases. Rather than a consumer paying full price in the market and paying month to month.
So US carriers are NOT carrying BB products because they don't sell like iPhone or Samsung or HTC. These are the phones THEIR customers want...not because its a money deal for the carriers. Carriers are constantly negoiating to have exclusives deals with phone makers in order to draw away subcribers from other carriers.
So again, carriers make the bulk of their money...(89%) on DATA,USAGE,DATA MINING for sale to third parties. Marketing budgets by carriers are for CARRIERS...not the phone makers.
We are talking here in Crackberry that BLACKBERRY needs marketing in order to attract consumer demand for their product. In turn said demand will drive demand from the carriers to carrying BB products that the market wants. Many consumer have NO IDEA about BB products because of NO ADVERTISING from BLACKBERRY...not carriers. That is a fault of BB! It is a problem that BB can and must solve themselves. No one is advocating the carriers DO THIS.
I hope this helps to clarify better for you what is happening her in the US.

So again...carriers are NOT making a profit SELLING one phone versus another phone...they make the profit on the USAGE from the phone their subscriber uses. Carriers sell what consumers WANT...if BLACKBERRY doesn't drive demand for their product (MARKETING/ADVERTISEMENT)...the consumers doesn't demand that the carriers carry/offer the phones.

Last point...
Example: according to a Fortune news article, in 2013 average price for unlocked premium phone was $585USD compared to carrier locked phone $578. Apple of course pushed the curve high with HIGHEST COST phone compared to BB!
Phone cost to the carrier has no barring in the dilemna BB faces...consumer demand DOES. Without MARKETING...there is little to no consumer demand...no demand..ALL carriers are likely to pass or offer zero support in sales and THEIR marketing budgets. BB must solve this problem....because its an awesome product that consumers LOVE.....WHEN they get their hands on the devices!

I think at this point it is carrier or salesperson support. They are actually being pushed away from buying BB10 devices because the carriers get more money to sell apple or have commitments to sell a certain number of Apple phones. Salespeople are just uneducated or get more money to sell Apple too.

I agree about marketing, I believe that is the problem with BlackBerry, as a publicist I can tell you that if you can advertise your product in a attractive way doesn't matter if you're selling a rock, you'll be able to sell it to anyone, so what blackberry needs is to focus on marketing.

Posted via CB10

@Morpho4444

They can't just drop BB OS7 people still use it. Its not like they have the liberty to just make stuff obsolete they need to gravitate those users to BB10, but that is a double edged sword because BB10 doesn't get the revenues BB OS7 does.

Overall, a decent ER. Completing CORE one month ahead of schedule is huge. Lets see what Chen has to say. The BES and QNX figures are important metrics here.

Well, slightly below what I expected. I'm glad that device sales didn't completely fall of the map despite removal from the US market. Need to know more about BES sales.

Posted via CB10

Yeah but his goal of having free operating cash flow might be deceiving: a company can still have good cash flow but very low EBITDA. As well, I'd be concerned about cash flow return on investment (I haven't seen numbers), that percentage might be very low as well.

Sales are down, revenues are down, cash on hand is down..... they are still in a free fall. And the cuts in spending are not necessarily a good thing.... cutting R&D is a long term problem that will ultimately leave BlackBerry always playing catch-up and forcing them to copy what the other guys are doing.

As for Overnight..... they have had BB10 out for a year now and things have only gotten worse. Take a second look at all of the year-to-year numbers....

Maybe copying what others are doing is what they need to do. Paid off for Samsung, even after legal fees lol.

Sounds pretty negative the way it was put here. Maybe it is will just have to see what the stock does. I thought the headline was loss of 8 cents per share versus projected 55 cents. If they actually hit 55 cents would they be dead? Seems like a lot more.

To add a rather startling comparison for perspective on handset sales and the market at large, rising Chinese Android manufacturer Huawei shipped 58 million handsets in 2013 and is aiming for 80 million this year (I couldn't find sell through numbers).

Posted via the Android CrackBerry App!

So it's the fact Huawei is using Android, and has nothing to do with the fact they're selling sub $100 smartphones?

Get real folks. It's all about price in the end.

Only Apple can sell phones as fashion. And that won't last forever.

Until BlackBerry can sell devices at the same price as Android manufacturers they'll continue to struggle. Hence the Foxconn deal. And no doubt the deal with Wiscon will also be for low cost phones.

Those numbers don't mean BlackBerry will do the same if they do adopt Android. Having another company making Android phones isn't what anyone needs. Especially not us BlackBerry fans. Samsung owns the largest piece of the pie in the Android phone segment. Not like BlackBerry stands a chance there. Having a different OS and ecosystem may be the hard route, however under Chens leadership I think BlackBerry stands a chance in the long run. If they go full out Android they may even loose the government contracts they have which would make things even worse for them. Who is going to buy a BlackBerry Android phone when there are better Android devices out there for cheaper and with better hardware?

Posted via CB10 on a Z10 running on BB10

Never said they should go full out Android and abandon BlackBerry 10. But they need to introduce at least one Android model. BlackBerry can't afford to ignore 81% of the market anymore.

WHat does this really buy Blackberry? Pumpin out a ton of handsets that they don't make money on? If it's just to get people on BBM better just do deals to get BBM on Android handsets, which is what they are trying to do.

In no way should Blackberry try to compete with Android. They should just make sure any handsets they do sell can run Android apps unaltered.

Big fucking idiots thing adopting android could help...... it won't... they have the runtime already going full Android won't do a damn thing...

Z10STL100-3/10.2.1.2141

I hate BlackBerry for not investing in marketing / commercials..
C'mon... pls do something!

Since 2010 

I take it you're in the US.

There's no marketing because for the ordinary guy in the street (i.e. not a BlackBerry fan) there is no way to buy a BlackBerry.

Go into a carrier store and ask for a Z30 if you don't believe me.

Until BlackBerry lowers the price of its devices to carriers they won't sell the devices, and there's no point in marketing something you can't physically sell.

When BlackBerry produces the Z3 as an LTE phone at low cost, they'll hit the US carriers and the devices will be marketed. So expect that later this year.

br14...in the US the ONLY carrier for Z30 is VZW! They don't even have the devices in the store for consumers to use in the decision process. VZW is running specials at $199...the same cost as Samsung, HTC & iPhone. Subsidy cost are not that far about for the carriers...its a matter of POOR market demand for BB devices. Now suppose you are with Sprint...T-MO...AT&T? What now? Can buy a Z30 from them....NOTHING to do with cost....its not available through them. Sure you can get a Z10...or Q10 but not the "flagship" device?
Further...how many people at the end of their contracts...even know about BB10 devices? Honestly...here in the states....FEW! So people aren't going to go asking for a device they don't know fully about or about at all? If the consumer isn't asking or buying the devices...why would the carriers pushed them in the stores? Regardless of the splits..its plain math? If people want rice to eat for dinner...why would I try to sell them bulga?
BB MUST devise, develop and implement an aggressive BB10 campaign. BB must get devices into as many hands as possible to allow consumers to try the product. It sells itself well once you have it in your hands to use.

Not cost to the consumer.

Cost to the carrier.

They don't make enough profit from BlackBerry.

Thats why the don't sell them.

Ask yourself the question? If I was in business to sell phones, which phones would I sell. Cheap phones I can make a huge profit on - or expensive phones I have to subsidize.

That's why the carriers don't sell BlackBerry.

There's absolutely no point in BlackBerry marketing devices that no carrier wants to sell.

You have to start thinking like a business if you want to understand the smart phone market. Only Apple sell phones at high prices because they've marketed their devices as a fashion accessory (like a Gucci bag or similar) and not as a pure smartphone (in which case no one would buy them - they're way too expensive) . It's a long long time since BlackBerry could do that.

There might be some traction in marketing their website. But you'd still have to pay $499 for a Z30.

Not too many people are going to do that.

When T-Mobile made their recent offer, they actively persuaded people to switch to different devices.

Not because BlackBerrys are no good. But because they make more profit from the other devices.

Consumers are being scammed by the carriers. Surely that's not a surprise.

They needed marketing in the US Yesterday. Not only are the adds few and far between, but the carrier reps tell walk ins all the time BB is dead/ no product support/ out of business/ going out of business/ etc. I have witnessed this first hand, and read tons of posts about on CB. In fact I only ran into one rep who not only liked, but loved BB's Z10, since launch. Although he was a best buy employee who received the phone to be a tester/ problem solver.

Carrier reps don't tell people BB is dead because there's no marketing.

They tell them BB is dead because their bosses tell them to.

Carriers will not sell BlackBerrys because they make less profit from BlackBerry.

Why is this so hard to understand?

BlackBerry could take their entire cash bundle and market the hell out of the devices and the sales would barely move!

They have to produce phones cheaper (hence Foxconn) before carriers will sell the devices.

That will happen later this year when the Z3 LTE is released. Only then will there be any point in marketing the devices.

your missing my point, if the carriers voice is the only one heard that is what will be believed. They need a second voice. will it sell, sell, sell, no. But things would not be So bad in the US.

Sorry. It's a fair point.

I think the plan is to wait until they have a product the carriers will sell then hit the airwaves with marketing.

Looks like even a basic campaign to increase awareness is just too expensive.

That is the question I keep asking you? Blackberries are NOT more costly than Samsung nor iPhones. Carriers do NOT make profit on SALE of phone to contract customers....they make it on usage. Carriers do not support BB because their is NO DEMAND. This is a basic economic principle. An issue that BB created and must solve...not carriers! They are just middle man...like a car dealership selling inventory.

CrackBerry is not a good place to get a real world impression of BB devices.

As for marketing... it cost millions and millions of dollars that BlackBerry needs to survive. And to be frank the product isn't good enough for the average users - the whole using SNAP or another Android Store is not an official solution to the App Gap.

Exactly. Here in the US in NY I tried to look at a Z30 and the first thing the "salesman" says is "You don't want that". They aren't trying to sell that phone at any price. There are no ads anywhere for BlackBerry in the media. People that see my Z10 didn't even know that BlackBerry made touch screen phones. They like the features and look of my Z10, and when I tell them it now also runs Android as well as BlackBerry apps they wonder why they've never heard about the phone or saw any ads for it. That's what we're up against.

Posted via CB10

Agreed 100%.
I love BB10, but at this rate, with this kind of buzz it's looking pretty bad.
And i guarantee this : once BlackBerry is dead everybody will start to Bitch about how good a system it was and how awesome it multi tasked etc etc
Of course it will be too late then

Posted via CB10

But if BlackBerry dies i have still hope for BB10.. I can imagine that some powerful company / group / whatsoever could buy the OS... or maybe I'm just naive

Since 2010 

My hope is that if BlackBerry folds on the hardware side, the manufacturering is picked up by someone big like Samsung.

Then BlackBerry can just focus on service review. I don't care where the hardware is made, as long as the OS remains in tact.

Posted via CB10

Stop commenting you lot - the line of this discussion is starting to sound horribly reminiscent of those towards the end of Palm.

Posted via CB10

Everything is going to be alright... BB will release Z3 soon and the next quarter they will report trillion dollars in revenue. If this is what you want to hear, then here it is. BB looks pretty dead to me.

With a recover of $149 million from inventory they obviously found a way to sell some of that $1B of Z10 inventory (in spite of an almost total lack of marketing activity). Certainly helped that they could be upgraded to OS 10.2.1.

No mention of the forthcoming real estate transactions they were expecting in terms of cash coming in.

Sadly I think BB10 handsets are going to die off. Hate to say it but sales were dismal.

Posted via CB10

Shipped numbers aren't that important. They still have large levels of channel inventory.

That inventory did at least burn down a little.

Its funny how many people think that a company can be totally turned around inside of a few months. No one should be surprised, at least it looks like it will head in the right direction.

AmaZ30ed

Well it looks like BlackBerry is going for broke. If they expect to break even by the end of this fiscal year and they continue to burn cash at this rate, then they won't have a whole lot of cash left in the bank if things don't go according to plan.

They need to inject some life into BlackBerry 10. Selling fewer handsets a year then your competition sells in a week a strategy for success of the new Platform. Businesses are clearly still buying legacy BlackBerry devices almost 3 to 1 over BlackBerry 10 after more then a year on the market.

I hope BlackBerry has some plan to reverse this.

Expectations are the losses will get smaller. Hopefully the shortfall in revenue isn't a trend.
As one would expect Chen to be looking elsewhere as revenue from legacy devices fall.

Hardware is going to look the way it is until they release their next round of devices.

Putting money into marketing on low device margins isn't wise until they rebuild those relationships and that hopefully will be when the z3 arrives.

"They need to inject some life into BlackBerry 10."

Nothing is going to happen until Foxconn start shipping the Z3. I'm guessing the price to carrier will compare favourably with the competition and that should see adoption of BB10 increase.

And the real movement will occur when the "classic" device ships later in the year. Low price plus trackpad should equals sales.

Not too pleased by the highlights here, at least it seems that they are on the right way to restructuring.

Posted via CB10

Agreed. The less R&D, the less innovation ahead. It's concerning.

It would be great to see marketing dollars increase in its place.

Most carriers don't make enough profits on BBRY anymore. Hence they don't sell the devices.

All about price in the end.

Most people buy what they're sold.

And carriers won't sell BB devices because they don't make enough money from them. They're too expensive to the carrier.

Admittedly the e-commerce option might be worth pushing. But the ordinary person in the street will still go into a carrier store to buy their phone. And the carrier will not sell them BB.

I just bought a Z30 last month, and it cost me 700 brand new. Maybe if their devices are not on the same price point of a Samsung or Apple device, maybe they could sell some more devices.

Also, if you walk in to any store, you only see Samsung or Apple advertised. As uncle_numpty said "advertise"

Bowserm...if you paid 700 for a Z30 I feel sorry for you since, especially since all over Ebay average USD was $575. Now BB offering Z30 direct online sales from BB for $499USD. Having said that...price point isn't as much the issue as plain folks DON'T KNOW about BB anymore. Every time I convince iOS folks who ONLY have iOS because of the hype machine of Apple about BBM, they respond..."wow, BB is still around....I thought the company was dead. What kinds of phones do they offer"?
You could offer the phone for $5 ain't gonna matter if NO ONE knows about your phones. When I put my phone in people's hands....they LOVE IT! Have done this exactly 17 times...11 bought Z30's afterwards, outright...no contracts! BB has to MARKET MARKET MARKET!!!!!!

Being a Canadian, We always have to pay more for our electronics. I could have ordered online, but if you add tariffs, plus taxes you are still looking at 700

499 USD is equal to 549 CAN. I paid 599 plus taxes locally, which worked out to 688 and change

I ordered 3 Z30's off Ebay from Canada for $577 CAN. It shipped from Canada next day...I imagine, though will concede not an expert. Canadians are able to purchase from same seller locally without tariffs...I believe the seller had listed in his ad, local pickup available. At least that was the case 3 weeks ago when I ordered mine for local folks here in the states.

BlackBerry 10 is a great product...with that said, no marketing or carrier support the handset business is finished...even the deal they have to out source won't mean much. I hate to say it.

Full disclosure...I use a Z10 & Q10

Posted via CB10

I don't get how sales of BB10 is to increase if there is no mainstream marketing and carrier support. If that remains status quo, they might as well count on future bleeds.

Loving my Zed 10!!

Everyone needs to understand that clearly BlackBerry was at the end of a product lifecycle for their hardware. The only strategy left for a company like that is to re-invent itself through disruptive innovation. It is obvious the shift in focus is away from hardware devices and BES. They are focusing solely on BES because it is the only hold they have. And I agree with this strategy. You can't compete in the smartphone market but have a good chance in enterprise.

Build BES then get back into the hardware side when the company stabilizes.

Posted via CB10

rennardd...excellent point...I rather agree that their focus has to be in the direction of higher margins....ENTERPRISE/DATA SECURITY. Stabilize their leading position in enterprise by aggressively pushing BES. This helps to hold back the slow creep of a number of companies that sooner or later will begin to have REAL challenging offerings in that space. Right now, they are fighting a losing battle about hardware with IT admins and folks within orgs that want to use "their" devices. The move to offer secure transmission across all platforms helps to cement BB for now.
Use the emerging and secondary world markets to enhance and develop new exciting hardware offerings to compliment enterprise services. This will allow BB time away from negative press to get the ship righted again. Then come back strong and hard with full compliment of hardware, software and services to both consumers and enterprise/govt spaces.

I agree that BES is BB last chance but more than 50% revenue drop from services (I suppose that BES is count there) makes me nervous.

Dolco, Not many companies are spending money on new MDM's right now if the current ones are working. IT budgets are often the first on the chopping block, IT managers constantly have to sell the why comes. Plus the licensing fees and structure as current set doesn't make it as smooth a transition as can be for BES upgrades of purchases. They are still KING on the blocks in that space...but others are slowly creeping and chipping away.

I read the numbers little different.
1. If companies keep old solution there is no influence on BB revenue because they pay license fees per phone anyway.
2. Because revenue fall that means that company stopped to pay license fees to BB
3. Less license fees means no old BES and no new BES10 to replaced them.

Licensing deals are different for legacy than BB10. Licensing IS an issue for BB moving forward as that part of the enterprise space is getting extremely competitive with alternative mobile management systems.

Look, I don't argue about reason why companies don't choose BES10. I really don't care about it.
What I can see from numbers is that companies drop old BES and don't replace it with new BES10.
Because I am not financial expert, I am waiting for people who confirm my observation or explain me why I am wrong.

Completely agree.
I had no idea just how useful bb10 could be before I used it.
It takes more than advertising, but marketing has stalled. (At least it has in the UK, as far as I can see).
The people that believe in BlackBerry feel so passionately about the product (look at us here, following this on Crackberry) - it's a good start.

Posted via CB10

Think of it like this: President Obama was handed a disaster of an economy by President Bush, and it took YEARS to stabilize the economy. What do guys expect John Chen to do in less than 6 months? Be realistic. He was handed a company with horrible share value and barely any consumer interest. Give it time, or help him by spreading the word.

I used my Q10 to create this CrackBerry madness!

Seriously, Bush? Come on man. Not to get political - but Obummer was the worst thing to happen to the US since Teddy Roosevelt.

Are you on unemployment? Can you get a job if you went looking? Are you living on the street? I'm willing to bet that the answer is obvious since you're on here. In Bush's last year, unemployment was out of control, the housing market crashed due to greedy banks, and car companies sold themselves off. What has happened like that with President Obama in the hot seat? You're welcome.

I used my Q10 to create this CrackBerry madness!

nerdydaddy,
No sense in trying to make sense of that comment. The thing about politics is it makes people who would be otherwise intelligent, observant and aware...completely blind to facts. It's the "my guy" didn't do but the "other guy" did syndrome. Before you begin a rant...I'm a card carrying INDEPENDENT since I was 18. I do not susbcribe to "party" alignments. No matter the president...some things they did worked well...some things DIDN'T. That's life, no matter how many times you stick your head in the sand...when you pull it out, the facts remain the same.
So I understand your analogy nerdy and its a perfect one...Pres. Obama WAS handed a leaky bucket with a giant hole in the bottom. Whether he completed the task in the way you would have liked stlscott 18 is another subject and your entitled to your opinion about it...but the FACTS are the previous president helped to run the economy off the track...period. It took President Obama time to plug the giant hole and begin to fill the bucket again. Now politics aside...
Chen is in the same position...his predecessors; especially the 2 IDIOTS, left BB in SERIOUS issues that now threaten the vitality of its existence. You may like the past "guys"...but they DID do a horrible job in some ways to BB that still hurts. That FACT remains no matter how long it takes for you to take your head outta the sand.

Well said, I like what Chen is saying, break even by next year, a quarter ahead of schedule in some aspects.

Sounds like he has a really solid plan.

AmaZ30ed

I also seem to remember Android was knocking about for a year or so before it really took off. It didn't just explode out of nowhere, it took time to get going.

But BlackBerry badly needs to demonstrate to the public the capabilities and USPS of bb10 - by advertising or other.

Posted via CB10

A SIMPLE question. Hardware wise (BB10 devices) they sold 1.1 mln. How should we evaluate this number. What was BBRY expectation? I know it is peanuts compared to Huawai, but that is not important. I really would like to know BBRY's vision about these 'sales'.

I did not add all the numbers, but I estimate there are about 6 mln BB10 devices sold since it was released. Is that enough with 5 different devices.

A little over a year ago there were about 80 mln BlackBerry devices in the hands of customers. How's that number today, a year after the 'big' launch.

So to repeat the question what was BBRY expecting and what do they have in mind for the future. By staying silent BBRY is only feeding the worries about continuation of BlackBerry hardware.

Have a nice day

They only said the sale of real estate is to fund ongoing operations, but didn't mention how much of the real estate sale is reflected in the numbers in the latest earnings call.

Wow. When Wall-Street misses top-line growth that's not good. Especially by 12%. We always harp on how bad the market hates on Blackberry. It's with good reason at this point. My goodness.

I still have hope that the "torch" is lit, but let's get serious here ladies & gents, this is a dire outlook for the time being.

It's now time to bite the bullet and kill-off BlackBerry 7.
It is defining people's view of BlackBerry, and it's now not doing them any favours. People are thinking BlackBerry and they are still thinking 'Curve'.
BlackBerry need a cheap, attractive entry-level bb10 device in every retail outlet where they have a Curve.
And BlackBerry need to market. They need to advertise in an innovative way, showing how their products are more useful than the competition.

* I say this as someone who, up until a few months ago, was married to my Bold. And, of course, my comments are easy to make when I don't have a clue what the lost BIS/BES revenues could be.

Posted via CB10

They'd surrender 2/3 of their handset revenue plus a whole bunch of service revenue. Not to mention give one less replacement option to enterprise. Not gonna happen.

Thanks for clarifying. Is it worth biting the bullet and throwing everything behind BlackBerry 10? Probably not now you've clarified that.

Posted via CB10

They should definitely transition legacy clients to BlackBerry 10 as it is their OS of the future. That doesn't seem to be happening quickly enough though.

Two-thirds of (not many) handsets being of the 'old' system strikes me as being a very worrying statistic for the long-term prospects of BlackBerry - and highlights how appallingly bad the marketing of BB10 has really been.

How sad, given it's such a superior OS...

Posted via CB10 on my Z10.2.0

Certainly NO ONE with common sense, let alone business sense expects BB to turn things around quickly. I have to remind beloved iOS fans that Apple was on the brink of total destruction for close 10 years before they managed to hit it big and come back. BB has many challenges that prevent them from doing the kinds of things that can help sales of hardware, software, services, etc. BB is competing against a number of powerful, deep pockets players in almost all of the same spaces they once dominated thanks to the idiots running the ship into the massive iceberg. It will take some time for Chen to stir clear into open water...right now he must slowly navigate what appears on the surface to be clear but underneath are still plenty of obstacles that can rip a massive hole into the BB "ship" if he is not careful.
Hardware sales is simple....ADVERTISE....MASSIVE, MASSIVE AD campaign that last longer than a single news cycle. I'm sure many on this site and blogs know first hand...when you put BB10 into the hands of folks, they LOVE the phones!! Selling Z30 direct is the correct first step...especially since the VZW marriage has been a predictable failure, then again I would have NEVER gone exclusive with any carrier at the point BB was at the time. Especially not VZW!
Sit tight folks...change doesn't come overnight!

ZERO Marketing Efforts is the cause of slow BB10 sales. As soon as they start marketing BB10 devices, hardware sales will get better.

I can see this happening this year, with the introduction to the Z3, Q20 and the upcoming/rumoured Z50.

Plus it does not help when USA Carriers along with the bashing media have both contributed considerable damage to BlackBerry's Image.

I trust in John Chen, he will know the right time to start pumping cash in Marketing.

By the way BBRY beats by $0.46, Earnings Per Share (EPS).

Posted via CB10

nt300...on one hand I'm right there with you with most of your post. I too believe strongly that aggressive marketing will get sales going again. But that argument could be made for any product or service. The question more deeply is WHAT product will BB market? Will the US carriers support BB's efforts? Will the media turn around on BB?
BB got themselves in trouble long before lousy non existent ad campaigns, US carrier non support and daily media blizzing of BB's demise. BB had BB to blame...most notably the two IDIOTS running the ship 5 different azz backward ways clearly against what the market demands were. US and worldwide interest in BB products has been trailing downward for years now. Poor products offerings, poor/missed release dates, incomplete/behind the trend devices relevant to market. These have been the hallmark of RIM/BB for far too long.
Now, my first cell phone was a Motorola Startec and every phone afterwards has been a BB. I have had several different models at the same time because I believe in BB. Until recent purchase of a Z30...I was using Bold 9000. I've held switch carrier in anticipation of BB device releases and the like. Yet time again, BB let's loyal fan/users down. I watched person after person leave BB for other brands....my wife finally just left because she could no longer wait it out. Now she loves her Samsung...not because its a better devices...because its a better experience AND its AVAILABLE! Is she or many folks who once owned a BB the "power users"? NO...but BB can't just sell to them...she and many folks left because of broken promises of delivering a BB experience worth the wait.
Now whether a person buys that or not, or thinks "oh well good riddens...wasn't a true BB fan". Your missing the point...BB is the reasons your statement is true. So Chen must first right the ship...then stop the bleeding. But sooner rather than later...BB has to offer a rich full UX becoming of BB, that makes people WANT to come back or over to BB. BB has to DELIVER ON TIME & COMPLETE...the "next amazing" BB product to compete, that consumers want/need.
So US carriers will sell whatever product their customers want...period. Can't force or demand they do otherwise without the weight of the market behind your brand. After all, they need the products to sell to bring folks to their services...no demand for BB products, not gonna push them. Plain n simple.
Media will rush to write the next big success or hottest trend...and/or the next biggest loser. Whichever one it is...doesn't make a difference to them! So if BB wants favorable press....GIVE THEM SOMETHING worthy to beat each other to be the first to get in depth story about.
Developers aren't gonna devote man hours of coding writing to a platform that isn't in high demand. Which would you rather spend countless hours on if you were them? Wouldn't you want to beat your chest with a smile and large bank account knowing your code is on TENS or HUNDREDS of millions of devices worldwide?
BB10 phones are amazing....BB OS is AWESOME...no matter how great they are...doesn't matter if:
1. They aren't delivered ON TIME COMPLETE
2. NO ONE knows about them

So, let's all be patient and hope that Chen can deliver. I for one believe FINALLY someone running BB has a freakin clue. Can he pull it off completely...that is the question. Stay tuned to the next episode.

BBrico, couldn't agree more. I think this will be an interesting year, out with the old in with the new. They finally have someone who is from outward appearances being proactive. I wouldn't be surprised if we start seeing some forms of advertising toward the end of the year. Like its been said earlier this all takes time and money. Two things BlackBerry doesn't have a whole lot of. BUT, I think given the direction they are going this is probably the quickest and safest route without killing the company or betting it all. Chen does not sound like a gambler that's going to bet all on chance. I would rather see someone get on base every time than swing for the fences. That is not what wins the game. Bein aggressive and consistently moving forward does.

Posted via CB10

Last week someone on RFD mentioned Koodo in Canada is selling the Q5 for $150 out-right. At this price people actually picked it up and are liking BB10 and keeping the phone. These are people that hated on BlackBerry without trying BB10 like a lot people.

BlackBerry does need a sub-$200 off-contract BB10 device in with LTE in North America. Everyone has said this from the start. Nokia did it and gained Microsoft a pretty good market share. Once people like the platform they will go to the premium device. The Z3 does not have NA LTE and it should at the same rumored sub-$200 price.

I like that Chen was also talking about increasing their own online shopping for devices, I hope that goes for pushing updates as well.

Stocks on the rise too!

AmaZ30ed

BlackBerry will eventually be obsolete. Non existent. Which is why I would never invest into the newer models. I'm happy with my Z10, but the future for BlackBerry isn't there.

Posted via CB10

I agree with lack of marketing. During the holidays, all of my relatives thought I had an iPhone. They were surprised that the Z10 had a full touchscreen. It had been out for a year!

Posted via CB10 on my Z10

BlackBerry 10 won't take off until they start advertising and showing of the great and unique features it has. As still most people I know hear the would BlackBerry and think of the OS7 devices or think BlackBerry is going out of business. So hopefully when the new range of phones are released, we get non stop adverts about them.

Posted via CB10

Not surprising you still can't walk into a store in Ireland and find any BlackBerry 10 phones and are not available online. Contacted BlackBerry help answer was it's up to the carrier to stock.....very poor response. not sure if it's the same in other countries but we here in Ireland have the same carriers in UK mostly .but don't have any marketing or people on the ground in Ireland.... most staff when you ask about BlackBerry they slag them off...... little do they know BlackBerry 10 is the best on the market but BlackBerry are not doing anything in Ireland to change this and they will continue to sell bb7 in Ireland until they do hard work on the ground here. In fact it u check BlackBerry Ireland website the buying options brings to carriers that don't stock BlackBerry in any format.

Frustrated BlackBerry user

Posted from z10 but wants a z30 :(

Posted via CB10

It's not just in Ireland. I live in the states and it's the same here. We have a rather large Verizon store locally and do you think I could hold a working Z30. Let alone no-one in the store understands the OS or can explain any of the features. And to add insult to injury they almost immediately try to sell an iphone or android. But you cannot blame the sales people. They are going to drift to not only what they are most familiar with but what they are told they need to sell.

Posted via CB10

They sold only about 1 million BB10 phones. It's amazing they sold that many phones with NO advertising. Of course you have to realize alot of those sales were to existing BB10 owners moving up to a Z30 or over to a keyboard phone. BB7 phones should be discontinued so companies have to move to BB10 phones. It's pathetic when your old phones outsell your newer models. No word on how Chen is going to get more, many, many more people to drop their Apple and Android phones for BB.

It's a pity that BB7 devices are selling more than BB10 devices. I think BlackBerry marketing is to take the blame here. I keep checking with my retailer here in Mumbai (India) and he tells me no one comes asking for a BlackBerry these days.

I had met a BlackBerry salesman once at the shop while I was there to buy a case for my Z10 and I told him to put a trained shop salesman at this counter. They indeed put a salesman in the next few weeks.

And last time I checked with the guy when I was just passing by the shop, he told me he is having a pretty tough time explaining customers who come to trade their legacy devices for a competition OS phone, they just don't want a BlackBerry anymore.

They like BB10 phone when he demonstrates one for them.. but they just don't want one.. in over three months that the guy is there at the counter, he has sold less than 50 BlackBerry devices. And I am talking about a pretty up market retail store here.

And though BlackBerry India claims to have gone out of stock recently when they dropped the Z10 prices, I still don't see many on the road in peoples hands..

Posted via CB10

I have yet to see someone with a BB10 phone in public. Only older BB phones. Even though I am on T-Mo, back in December I went over to a local Verizon store to check out the Z30. I had to search hard to find it in a corner with some older (?) Moto phones (dead man walking spot). There were no signs or other displays announcing the Z30, unlike the iphone and Samsungs. No one came over to see if I needed assistance, but as soon as I walked over to the iPhone and Samsung phones, they were tripping over themselves to get to me. This situation is untenable because without some marketing strategy, BB will fold. Their patents and other proprietary software will be sold off.

Did we not expect this? The big question is where from here? I think that a strong focus on the enterprise market is critical, but not sufficient for BlackBerry. It must develop/market appeal to consumers. From my perspective it is not doing enough in this area. Far from it. My BlackBerry is a credible device... Bit it needs more assurance in the apps area and that must be deeper android integration. Soon, or that's it folks.

Posted via CB10

Still hopeful. $976 million is nothing to sneeze at.

"Sell through of hardware was 3.4 million devices, of which 2.3 million were running the legacy BlackBerry 7 OS."

Whatever it is that keeps legacy BB's selling find out what it is and duplicate it with BB10. :-)

Blackberry should approach Drake for it's marketing campaign since lately he is so much involved in all things Canadian. Strategically that's the best move they can make to wet people's desire to buy BB.

Time to do the Android fork. Nokia just did it. BlackBerry can do it too. Suddenly, no more app problem. Suddenly, no more embarrassment that your new OS is less popular than your old one. And I write this as a Z10 owner. Time to go Android fork and join the mainstream party. If your security is better than other Android offers, well, you just grabbed a huge market.

The idea that BlackBerry hasn't been marketing is rubbish. BlackBerry sponsors the Mercedes F1 team. F1 is a sport with the largest television audience in the world outside of soccer. People are aware of BB10. They are just not interested. Deal with it. Fork time!

What is F1? I also see the BlackBerry name on the boards at hockey games, sponsorship of Maple Leaf Sports. That is all minor stuff.. if they go ba k to the consumer market they will need adverts with some popular, fun stuff and lots of it.
As for device sales, it's all in the eye of the beholder. My numbers crunch down to 3.4M/90 days/24 hrs/60 mins = ~26 devices per minute.
Seems like a reasonably good selling product to me.

Sent while driving from my Crackberry.

Has there been any real study/analysis done to identify the root causes of such poor BB10 turnover? Is it the new UI, or initial lack of features/settings ppl were used to, is it apps support, is it price, is it marketing or lack thereof, is it that ppl have switched, is it the ghost of the BBRY of old that haunts?

Does anyone know which model Bold Mr. Chen was referring to when he said production of the BB7-powered Bold will continue? Is it the 9900/9930 or a lower end one?

These numbers are so low. Under a billion is bad. I think people don't even look at blackberry for their next phone anymore. They just get an older iphone or droid phone. My friends don't even consider BlackBerry. But they should cuz it's a great OS. So they gotta find a way to change people mind on BlackBerry image.

Marketing is a huge problem in the US. I have Coworkers say to me all the time when they see my "Z10" that they had no clue BlackBerry had a new device. My main concern is when they tell me they ask the customer service representatives at sprint, Verizon etc. about BlackBerry, that they tell them not to buy or support BlackBerry it is not a good company anymore.

Posted via CB10

I work for one of the largest consulting firms and they're going to stop enrolling any new BlackBerry devices on the MDM... also they're going to phase them out in stages...
The name of the company starts with Ac******* and I was very unhappy since I can't enroll my Z10 and not able to enjoy the BlackBerry Balance feature :(

The problem is no one knows how good BB10 really is, they are either disillusioned by the Apple craze, or seeing Samsung as the only alternative. BlackBerry should be hitting college campuses with a Blackberry challenge. Setting up kiosks in the malls, getting as many of these devices in the hands of the American public as they can. American trends influence other countries, and the more they win us over the easier it will be everywhere else. The Foxconn partnership will make it difficult, and even Apple has found pegatron to be their next manufacturer with less negative baggage. As long as America device are made in America, Canada, or Mexico, BlackBerry still has a chance to win in a tough American economy.

Posted via CB10

Unfortunately a lots of countries don't have technical support for BlackBerry....
We buy a blackberry online without contract and we pray to God that our phone doesn't have a problem....
This thing is going for years for some countries....
Everything is blackberry fault in my opinion.....
Me and fans of blackberry are trying to convince friends - families e.t.c to buy a BlackBerry phone...and we know all of us hear in Crackberry that we are trying so much to succeed....
Unfortunately this is blackberries job and not ours....
I think that they haven't tried hard enough.....
If they don't do something quickly in this year, personally I'm out....
Sorry BlackBerry I have tried so hard for you,its your time now Mr Chen......