This company is going forward with full speed. In the last fiscal fourth quarter they sold 6 million smartphones with 370 000 PlayBook tablets. These enormous (for them) numbers reflexes on the profit and if they continue like this the future seems quite bright for them. But it’s not everything perfect for them – alongside with this they have lost 3 million subscribers and that is not good news.
From these 6 million devices, 1 million belongs to BlackBerry Z10 smartphone. The last fiscal quarter ended on March 2 and this manufacturer reported huge profit of $98 million. I say huge because last year they lost $125 million and from then the future keeps getting better and better. If we exclude the cost-saving program, the company reported regulated EPS, but the sales fell to $2.68 billion.
BlackBerry reported that this device is selling like crazy and so far, they reached 1 million. The sales from US are not included because this device has hit the market last Friday. The other devices beside the Z10, continues to move fast thanks to the resent discount.
All thoughts are focused on the BlackBerry Z10. Everyone wants to know how it will perform and what will the first results show – which will represent the first indicators of how the consumers will respond to this device. Recently CEO Thorsten Heins said that the results of a success or a failure will be known after two quarters. These 1 million Z10 devices were all sold or shipped to carriers and it doesn’t indicate how much units were purchased by the users. According to Heins the sellout rate from the carriers and retailers reached two thirds through the three quarters.
At the moment, the biggest concern is the shrinking base of the company. They have lost 3 million users in the same period and now that number shrank to 76 million in total. When asked about this Heins excused the number by saying that the losses are result from the prepaid part, and the demand for corporate plan is still healthy. But they stay confident and hoping to get into the user’s base with selling the next generation BlackBerry Z10, which is running on the newest operating system. This OS represents brand new fresh start for BlackBerry and they have high hopes for it to turn their profits other way around into positive outcome.
I’m with Heins on this one, let’s wait another fiscal quarter and see what happens then. Until that time comes, we shall all think positive and that BlackBerry finally is going forward.