BlackBerry Quits Making Smartphones - InformationWeek

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BlackBerry Quits Making Smartphones
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melgross
50%
50%
melgross,
User Rank: Ninja
10/1/2016 | 11:25:58 AM
Re: Hopeless
Well this was their last biggest market several years ago. But it's down to almost nothing there too now. It just seems desperate when a third world country is being depended upon, and pointed out, as their future. It's highly doubtful that anyone really cares. As Chen himself pointed out in an interview several months ago, just after their last terrible quarter, they need phone sales for their software and services business. Much of that is dependent on managing Blackberry phones. Let's face it, this quarter, we're seeing a false picture of the company, like a couple of quarter's past. They make it look as though software sales have doubled, when it's really just the consequence of their buying Good, and adding their results to those of Blackberry. That makes it look as though there was growth. But in reality, their continuing businesses are all down significantly. Good itself was going down when they bought them. Even QNX is suffering in the automotive world from the assault of automotive Linux OS's. and with Apple and Google working on solutions that go beyond what QNX is a capable of, who knows how much longer it will survive? The future is really poor. Investors don't seem to understand that even if Blackberry does "survive" it will be as a company with well under $1 billion in sales a year, likely under $600 million, the way things are going. Is that success on Chen's part? No it's a major failure.
sferguson10001
50%
50%
sferguson10001,
User Rank: Strategist
9/29/2016 | 9:01:52 AM
Re: Hopeless
@melgross: I couldn't agree with you more on what you wrote here. I doubt BlackBerry was making any money at all on any phones at this point. However, by going in with partners in developing economies such as Indonesia, a few phones sold could mean some decent market share and some profits. This is probably a way to break into other developing areas as well, and maybe even India, which is seen as the next big market for smartphones. 
melgross
50%
50%
melgross,
User Rank: Ninja
9/28/2016 | 5:57:43 PM
Hopeless
The previous quarter Blackberry sold less than 500,000 phones. So while it's nice to make a deal with other companies and lose the expenses, as Chen is saying, I doubt if Blackberry will be seeing any profits from this. Seriously, why would another company put any real money into such a declining business? This quarter it was 400,000 phones. With this trend, why bother? And software and services was down as well. All in all, a miserable trend. I can only think that Blackberry investors are incredibly naive.


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