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BlackBerry needs a spectacle to accommodate the annual handset sales goal

BlackBerry needs a spectacle to accommodate the annual handset sales goal

Struggling handset manufacturer BlackBerry on Friday expelled a third-quarter earnings results, that pundits mostly chalked adult as a large win. Losses, during 3 cents a share, were milder than a analyst-anticipated 14-cent drop.

It was an energetically awaited update, divulgence sales numbers for BlackBerry’s buzz-generating Priv smartphone — a company’s initial to run Google’s Android. But during a call, there was a undo between a confident note CEO John Chen struck, and a tangible information contained in (and conspicuously wanting from) a report.

“My initial idea is to get us into a break-even position with a device business, given we unequivocally couldn’t do anything strategically with a business that continues to remove money,” pronounced Chen, as reported by Re/code. “We’re in that ballpark now.”


From VentureBeat


Sounds like, in a initial month of sales (only 22 days, from Nov 6 – 28), Blackberry’s Priv was a exile strike — something we’d listened shortly after launch by sparse reports of discerning sellouts and singular availability.

Conflicting information

But if Blackberry’s hardware multiplication is unequivocally roving Priv’s coattails so successfully, given was this a initial time in during slightest 19 buliding — dating behind to 2012 — that BlackBerry didn’t mangle out device sales sum to lead a press release?

Possibly that’s given a association sole fewer sum handsets final entertain than it ever has before: usually 700,000. (Some sources are citing that figure as a series of Privs sold, though we accurate a series with BlackBerry.)

That means Blackberry sole usually a hair over 2.5 million handsets during a initial 3 mercantile buliding of 2016. Despite Chen’s avowal yesterday that a hardware multiplication would achieve profitability in a subsequent entertain or two, he told The Verge behind in Oct that a mangle even series was around 5 million inclination annually.

 

To strike that figure by a finish of a mercantile year, BlackBerry has to sell some-more phones in Q4 than it’s been means to do given Q1/Q2 of final mercantile year — and it needs to mangle a strain of 10 uninterrupted disappearing buliding (which stretches to 16 if we omit a slight uptick in sales between late 2013 and early 2014).

The caveat

To be satisfactory to BlackBerry, let’s make dual things clear: First, Priv hasn’t had most time during all to impact sales figures. Despite a bent to assume that a new product’s sales will be front-loaded as restrained direct is uncorked, another cause to cruise is a miss of a full rollout; a Priv usually strike Germany this week and has nonetheless to be stocked by heading U.S. conduit Verizon Wireless.

Second, it’s critical to comprehend that BlackBerry is distant some-more than a hardware OEM — and a fact that handset sales have been slipping for years now has usually accelerated a pull into other categories (a la HTC). Blackberry’s new merger of email customer Good Technology is said to be a pushing force behind a better-than-expected formula this past quarter.

Still, 700,000 is usually not a lot of units to pierce in a quarter, any approach we cut it. Apple frequently sells some-more handsets in a singular day, following a new iPhone release, than BlackBerry changed all quarter. Even new child on a retard Xiaomi famously racked adult 800,000 purchases in a singular day during one of a renouned peep sales.

The hapless law to these numbers is that if a trend they form continues for most longer, BlackBerry might not have a oppulance of selecting either to sojourn in a market: Its exit will have been commanded not by John Chen, though by a even some-more absolute palm of a giveaway market.

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