recommended reading

BlackBerry's Not Selling Enough New Phones Yet

The Blackberry Z10

The Blackberry Z10 // Frank Gunn, The Canadian Press/AP

The first earnings report from BlackBerry since its new phone launched is mostly good news—the company reported $94 million in profit and $1.2 billion in revenue—but there is one alarming figure: the 3 million customers the company has lost over the last three months. Even with a million Z10 devices sold, the company "lost about a million more subscribers" than analysts were expecting, according to analyst Jefferies analyst Peter Misek. Now that they see the numbers, their theory is that loyal BlackBerry subscribers with old devices didn't upgrade to new BlackBerry ones, instead ditching the Canadian phone company for competitors—even though BlackBerry launched a new gadget just for those people this quarter. In other words, the phone that was supposed to save BlackBerry, the Z10, hasn't done so yet.

To be fair, the catch-up gadget was only announced at the end of January, and there's been a slow roll out since then, debuting first in the United Kingdom around February 4. So, this quarter's earnings, which ended March 2, only represent about a month of phone sales. But even so, a reported 1 million Z10 devices sold in one month doesn't look too promising for the wannabe comeback story—especially since the former keyboarded phone king launched in some of its strongest markets first. Say the phone maker kept up those sales for three months in a row, it would only break even, adding as many customers as it lost, which is better than shrinking and dying forever, but not quite good enough. "1m BB10 sales in 1-2 months isn't terrible. Not out of the woods by a long way though," tweeted mobile analyst Benedict Evans

Read more at The Atlantic Wire

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

    Download
  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download

When you download a report, your information may be shared with the underwriters of that document.