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BlackBerry Says It's Done Designing and Building Its Own Phones (theverge.com)
BlackBerry today reported its fiscal second-quarter sales and said that it will stop making its iconic smartphones and focus on its software business. The Verge adds: BlackBerry has announced that it plans to stop making its own phones as the struggling company continues to focus on its software and security products. This is far from the end of BlackBerry devices, the production of which will be outsourced to third-party manufacturers -- as was the case with the company's recent DTEK 50, a clone of Alcatel's Idol 4 with BlackBerry branding. "The company plans to end all internal hardware development and will outsource that function to partners," said CEO John Chen in a statement. Elsewhere he stated: "We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold." This isn't surprising news considering BlackBerry's ongoing struggle in the mobile market. According to estimates from Gartner, the company claimed just 0.1 percent of the market in the second quarter, equating to sales of some 400,400 units. The last BlackBerry phone manufactured by the company was the Priv, the company's first Android-powered device, released November last year.
I like my Z10 and Z30. I really like BB OS 10. I love the way messages are organized in "Blackberry Hub"
But if Blackberry is moving to an OS they don't write, on hardware they don't design or build - is there any reason to buy their stuff any more?
Sad. I've had a Blackberry in my pocket since the 5790, a three line pager with the iconic keyboard. :(
"History doesn't repeat itself, but it does rhyme." Mark Twain
BlackBerry should've died the moment their CEO schizophrenically boasted about how they let law enforcement pry into BlackBerry devices while simultaneously denying that there's a backdoor.
"This is far from the end of BlackBerry devices..."
I suspect it's not that far.
#DeleteChrome
"BlackBerry CEO John Chen has responded, ... to media reports that the Royal Canadian Mounted Police force has used a “global encryption key” to intercept and decrypt over one million “electronic communications on BlackBerry devices (Pin to Pin messaging)” between 2010 and 2012.... “When it comes to doing the right thing in difficult situations, BlackBerry’s guiding principle has been to do what is right for the citizenry, within legal and ethical boundaries,” writes Chen. “We have long been clear in our stance that tech companies as good corporate citizens should comply with reasonable lawful access requests. I have stated before that we are indeed in a dark place when companies put their reputations above the greater good.”
http://www.cantechletter.com/2016/04/blackberry-ceo-john-chen-confirms-rcmp-cooperation/
So, any idea that you will get to challenge any search warrant for your data goes out the window. People like Chan will be good citizens and hand over the encryption key without challenge, in secret, behind your back, and behind the backs of the courts, for the greater good of citizenry. And of course with no limits, since that key covers all his customers, not just Canadian ones, not just in Canada, not just the few involved in this investigation, the Mounties took millions of messages.
And do any of the people wrongly investigated get to learn about the messages they took? Or the legal basis? No? Thank you Chen, I can't wait to not buy your next employers products.
Just what we need, more Android phones!
Am I the only one who remembers QNX? They used to have a decent desktop OS for x86 that booted on a Pentium II 450mhz/128MB machine in about 45 seconds. It had a full fledged GUI (Photon), and was approaching BeOS levels of speed. From what I've seen of the kernel source, it's pretty well written too.
What did Blackberry do with it?
Well, they turned it into a tablet OS that took 5+ minutes to boot up on a 1ghz processor with 1GB of RAM.
How did they fuck that up so badly? Why haven't they revisited QNX and either used what they already have (instead of their own half assed GUI slapped on top of that)? Why did they just give up and switch to Android?
More importantly, what do they have to offer in a sea of Android devices? Are they going to give Android the same treatment they did for QNX, and turn it into a bloated steaming pile of junk?
I don't know why they couldn't just continue to make Android devices with Blackberry features. The quality of their cellphone and software was superb compared to most Android device manufactures. I highly doubt that selling QNX can make as much money as selling smart phones.
Looks like I'll be keeping my Q10 until it dies. I was really hoping they'd produce a non-slider Android with a physical keyboard before throwing in the towel.
cuz folks are just about done buying them!
the results for this quarter were clearer: a net loss of $372 million on revenue of $334 million.
So, for every dollar of revenue, they spent that dollar, plus more than more than another dollar. If that's the definition of a strong financial foundation, give me your credit cards and I'll make you WONDERFULLY strong. They must be using graduates from the Trump University's school of accounting.
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
I wish blackberry would create a decent keyboard tightly integrated with a protective case to add to my android or iPhone. I miss physical phone keyboards very much.
very sad, that BlaskBerry losing their popularity. It was a good alternative to the iPhone, but at this point Apple has gone far away in smartphone technology. Hopefully in the future Blackberry can still return their smartphones on the market
...probably because it's precisely what I've been saying they should do since the first android hit the shelves. They were outclassed, but they had a great corporate security reputation. They should have ditched the hardware and partnered up with an android maker to provide a corporate secure device, complete with the software backend.
Instead, they sat around pretending their market position could never be threatened, and consequently got left in the dust.
Mod me down with all of your hatred and your journey towards the dark side will be complete!
It was a good alternative to the iPhone, but at this point Apple has gone far away in smartphone technology.
That hasn't been true for a long time if indeed it ever was true. Not just with regard to Apple either. Android phones surpassed Blackberry phones a long time ago as well. Heck even Microsoft's offering are arguably better even if they haven't been well received in the market.
Hopefully in the future Blackberry can still return their smartphones on the market
"Hopefully"? Why hopefully? They were an arrogant and stagnant company with products that couldn't keep up with the competition. They threw the privacy and security of their users under the bus to cater to governments around the world. While I certainly welcome more competition in smartphones I don't think it can or should come from Blackberry.
the results for this quarter were clearer: a net loss of $372 million on revenue of $334 million.
So, for every dollar of revenue, they spent that dollar, plus more than more than another dollar. If that's the definition of a strong financial foundation, give me your credit cards and I'll make you WONDERFULLY strong. They must be using graduates from the Trump University's school of accounting.
They have, according to their balance sheet, $3 Billion in cash and short-term investments and about $3 Billion in liabilities, half of which is long-term debt. So, they aren't going bankrupt for at least 5 years with the current burn rate. I'm guessing that dropping in house development of phones will reduce the burn rate quite a bit. So, their financial foundation would be considered solid for at least the next couple of years. However, if they don't return the company to profitability within that time, things could get worse.
Note: The above is purely my opinion. I am not a financial analyst.
Actually, this is more like Hillary saying Lowering Taxes delayed the recovery, and she is going to tax us more, so they can spend more. Because taxing people in a recession is a great way to get us out of recession.
Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
The above is purely my opinion. I am not a financial analyst.
You are absolutely correct. While they are burning money now, they have enough assets to last though this bit of a rough patch. And, if they sell off any patents they don't actually need (Hardware) to someone, they can add to their liquidity.
The fact is, there are plenty of /. "experts" who don't know shit about running a large enterprise business, but think they do. Mom N Pop doesn't scale, and far too many IT people live in that world (and make a good living at it)
Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
I find this decision difficult to understand. I was forced to get a BlackBerry for work, ended up with a Z30. The hardware seems decent, but the absolute worst thing has always been the software. It's like the people designing the OS have never used a smartphone before. I can see the potential usefulness in some of the software for some people, but as a whole I consider their software to be their weakest point. I only have to charge this thing once a week, because I hate using it so much (ugh, remind me again why I was forced to get this thing).
That surprised almost no one. Except the last guy in my office who still uses a BB.
I'd just filed my thumbnails to points to be able to use the keyboard you insensitive clod
"Blackberry says It's Done"
There. That is much more concise. AND Accurate.
The reality is you are hopelessly wrong. They had +257M cash flow from Operations last fiscal. Their investments cash flow (which is where asset selling/purchasing would occur) was down 439M - ie they invested MORE in assets then they sold. They have been buying assets with cash. Buying. Not selling. They have a profitable software business. They are out of the unprofitable hardware business, good for them. They will wind up like Novell - once dominant, nearly wiped out, but still chugging along as multi-billion dollar business.
Too bad. The Priv seems to be the last physical keyboard Android phone. Prior to the Priv, I had a Droid 4 which I liked even better (bigger physical keyboard still).
Unfortunately, people like me who need to compose longer emails while on the road are a very small minority. Most people are happy typing one line "text speak" with their fingers or talking to the phone. That's not good enough for me.
Not to mention that the onscreen keyboard takes away from screen real estate.
That BB management has taken 7 or 8 years to figure out what seemingly everyone else has known for years. The release of iPhone started it but once Android took off BB was done. All that money wasted developing new BB phones and then even a BB Android phone. Hubris I guess. Microsoft didn't get it either when they went and bought the Sidekick and then Nokia.
I know that 400 units is not a lot, but you don't have to state it twice, and if you do, keep a space after the comma.
Sounds a lot like Homer Simpsons boxing strategy where he lets the other guy punch him in the face...
"OK, we've successfully been totally destroyed in the global mobile phone market, exactly how we had planned to do. Next step, world domination! Muhuhahaha!"
Now that they're letting a third party do it, any semblance of quality will cease to exist.
Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
Shareholder equity now stands at $2.554 billion (a loss of $801 million in the quarter), but some of the assets included in that are questionable. They're still evaluating goodwill at $562 million, which is ridiculous (and that's after taking a $46 million charge). And inventory of $127 million. Seriously, orphaned stock is not worth wholesale prices.
How many quarters will it take to wipe out shareholders? At this rate, they have 1 year. Will they go broke? No, they'll keep evaluating goodwill at an inflated level, they'll keep the unsold inventory on the books, and cross their fingers that some corporate activist doesn't say "You know, they should liquidate now, before all shareholder value is lost, and return any money to the shareholders." The only reason that's not going to happen is that an actual liquidation would come up negative after all creditors are taken over.
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
Their latest filing states $562 million goodwill as an asset. Do you really believe it? They tried to sell themselves off when they had more money in the bank and there were no bites.
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
They still have $127 of inventory on the books even after taking a $41 million charge in the quarter. How much is that going to be worth now that it's orphaned? Between that and the hallucinatory goodwill of $562 million, their shareholder equity is still down by $809 million. Where are all those assets they bought? If they had invested more in assets than they sold, those assets would have to show up as assets on the balance sheet somewhere. They don't.
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
No, no it's not. Invalid analogy. The OP's works better.
His ignorance covered the whole earth like a blanket, and there was hardly a hole in it anywhere. - Mark Twain