With the recent launch of its new device, Passport, BlackBerry Ltd (NASDAQ:BBRY) may not have re-emerged on the smart phone scene with a ‘Bang’, but the sale figures are still better than expected. Jack Gold, of J. Gold Associates was quoted by Sean Silcoff in his article on The Globe and Mail, explaining how the low sales of the Passport are still good news for BlackBerry Ltd (NASDAQ:BBRY).
200,000 is the quantity that was slammed on BlackBerry Ltd (NASDAQ:BBRY)’s forehead after two days of the launch of its Passport. It’s the sales figure in connection with Passport. Compare this with 10 million devices that Apple was able to sell during its first weekend, according to Silcoff, and you can understand why 200,000 has such a negative tone to it.
However, Gold expressed concern that both consumers and investors of BlackBerry Ltd (NASDAQ:BBRY) shouldn’t fall in this trap. Mr. Gold had three main contentions with BlackBerry Ltd (NASDAQ:BBRY)’s unjust comparison with other smart phone manufactureres.
Firstly, BlackBerry Ltd (NASDAQ:BBRY) did not target the general smart phone industry with its new device. Its focus were the enterprise users, according to Gold. Secondly, the device is yet to go on sale in U.S. which will fatten this figure further, and thirdly, BlackBerry only needs to sell 10 million devices per year to break even, as explained by the company’s CEO John Chen.
BlackBerry Ltd (NASDAQ:BBRY) is under an overhaul of sorts under its new CEO since November 2013, who is trying to make a turnaround for the company in terms of cutting down costs and refocusing on new streams of revenue. Chen was quoted in the article as saying that Passport is just a warm-up for the real gem called Classic that Blackberry will be releasing later this year. It is modeled around the old flagshipship smart phone of BlackBerry Ltd (NASDAQ:BBRY), Bold.
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