BlackBerry Impresses with New Devices, But Not Revenue

December 19, 2014 by

BlackBerry's new Classic and Passport devices were fairly well received by critics, but revenues announced today were disappointing.

On Monday (Dec. 15), I stumbled on a Forbes article whose author (an investigative attorney and physical security specialist) professes to prefer the BlackBerry Passport over his iPhone 6. He cited security (of course), larger/hi-res display, real keyboard (of course), heavy duty battery, solid construction, among a few OS and UX preferences.

BlackBerry unveiled its new Classic smartphone (pictured above) on Wednesday (Dec. 17). CNET reported that although AT&T still hasn't begun selling the Passport (which launched in September), it and Verizon will sell the Classic in the U.S. Bell, Rogers and Telus will sell the phone in Canada.

As for revenue, the Financial Post reported today that BlackBerry's "latest quarterly results showed positive cash flow ahead of schedule, better than the US5˘ loss per share forecast by analysts surveyed by Bloomberg. However, revenue was far below the US$931-million expected by the market, as smartphone revenues were lower than what analysts forecast."

In BlackBerry's defence, the company was unable to generate much revenue from new devices this quarter because the Passport (which did not sell well) just launched and the Classic was yet to be announced.

"This quarter was focused on clearing out BlackBerry’s old inventory of phones," wrote the FP's Armina Ligaya, "which brought down the average selling price (ASP) of each device sold, said (BlackBerry CEO John) Chen. But going forward, as sales of Passport and the newly-launched Classic ramp up, the ASP will start 'ticking up,' he said."

It's also worth noting that less than half of BlackBerry's revenue from the quarter was generated by hardware. The revenue breakdown was as follows: 46% for hardware, 46% for services and 8% for software and other revenue,

Posted in: BlackBerry, Industry News


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