Re: BlackBerry's Next Act
I seem to recall that there was another company that hired a new CEO who decided to go in that direction. It was a small company called Hp. Remember what happened there? They hired a CEO that knew software, but knew nothing about hardware. That's what they've done here. The difference is that Hp wasn't on the edge of going out of business, even though they've had their problems.
The problem here is that it's simply too late. What's being forgotten is that without robust hardware sales, there's no need for BES BB10. It doesn't manage Android and iOS very well. Certainly no better than a myriad of other MDM's. And, as far as I recall, the totality of MDM business last year was about $500 million. Even if Blackberry gets a good chunk of that, unlikely as it may be, that's a tiny fraction of what their business has been. It's wouldn't be Blackberry anymore but some small vendor indistinguishable from all the others.
And what about that vaunted new multi platform BBM? Well, what of it? A big deal is made of the supposed 80 million users. Hey folks, that's not a lot of users! Apple's iMessage has at least five times as many. And if Google decides to do one, they will have 20 times as many. And the carriers are giving texting, messaging and mail away for free with the new plans.Then they have to monetize it. I've been bringing this point up since it was first shown. Now Chen is saying they may have a monthly charge for BBM for those users on BES. What a wonderful idea. Charge for a free service. Or they may have Ads. Another idea that users will love.
I believe that 53% of their $1.2 billion was for services and software this past quarter. That would give them about $2 billion in sales for a full year. But that's assuming that those services and software aren't falling as their hardware sales are. I think they will, if they are not already. After all, a lot of those services and software depend on those hardware sales. No hardware sales means lesser services and software.
There are doubts that Blackberry can bring BES BB10 for Android and iOS to where it is for BB10. If not, what's the point?
And what's the point to the survival of Blackberry itself now? Very little.
It's understandable that a company will do everything possible to save itself, but when they put themselves up for sale and received no serious offers, that should tell us something. I see investors ran the stock up by 15% today. They are living in a dreamworld.