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.”
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.
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).
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.