According to Brian Colello, equity analyst at Morningstar Securities in Chicago, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) needs to regain faith of the investors and the success of just one of the two devices can do wonders for the company.

“One of these devices, the Passport or the Classic — and maybe it will be the Classic — needs to emerge as that front-end device that is in the customers’ hands. And, reputationally they need another hit, they need another successful phone at some point.”

Classic near release

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is nearing the launch of the new Classic device and this device is targeted at the corporate users. This device boasts of features that were popular from the days, when the brand was enjoying glorious days along with some new features that are bound to drive the ardent BlackBerry lovers crazy.

The device will be launched simultaneously in New York, Singapore and Frankfurt on Wednesday, 17th of December, by the technology company based in Waterloo, Ontario. The device sports a track pad, a QWERTY keypad and a row of navigation keys with which the old BlackBerry users are already familiar.

The last device released by the company was the Passport, which has been a huge hit, and the Chief Executive and Chairman of the company John Chen has higher expectations from the upcoming Classic device and expects it to grow more popular than the phablet sized device.

Turnaround efforts paying off?

John Chen joined in November last year as the CEO of BlackBerry Ltd. (NASDAQ:BBRY) (TSE:BB), and he came up with a plan for the company’s turnaround under which they are releasing devices with a difference, and Classic’s release is the latest step. BlackBerry pioneered the smartphone category earlier, but the new CEO has shifted the focus to software, services and enterprise clients after its repositioning. The company hopes to become profitable by next fiscal year, and its hopes are attached to the revenue from software, which it expects to double to $500 million, and from Blackberry Messenger (BBM), which will help generate revenue worth $100 million by next fiscal year.

Through the transition period of turning profitable from unprofitable, the company seeks to gain short-term profits from devices such as Classic. This becomes more important because there has been a significant fall of 10% to 15% in the revenue generated by the company from high-margin service on older devices each quarter. Mr. Chen informed that for turning profitable on hardware the company will need to sell 10 million smartphones on an annual basis.

10 COMMENTS

  1. Hello….oh no come back right??? Yah I thought so I know you are a hardcore apple fan and I have nothing against the iPhone at all (I think it’s a good product but overpriced) but next time instead of spewing nonsense make sure you check your facts first before making such a statement.

    Happy Holidays!!! 🙂

  2. You sir are absolutely a misinformed troll my friend!!!!! This the agreement between blackberry and foxconn:

    Foxconn will be manufacturing all low end and mid range phones for blackberry while blackberry will design and ensure quality control through them. All high end phones will be made by blackberry through another manufacturer. The classic is a MID RANGE phone not high end.

    It was announced way back in February!!!!

    https://www.cnet.com/news/blackberry-ceo-confirms-foxconn-made-q20-and-z3-phones/

  3. For your information Foxconn is not making the Classic for BB. Only the cheap models like Z3 are built by Foxconn not the high end phones! Those are still designed and developed by Blackberry so that they have full control over it’s design and construction. Plus they don’t need to rely on low cost solutions when they are making a premium phone!

    Next time you try to be smart, make sure you know what you are talking about first!

  4. LMAOO!!!!! Your statement makes no sense since Foxconn is making the classic buddy so there ZERO risk for unsold inventory what so ever!!!!! Honestly you’re just a troll big time and have no clue to what you are saying….

  5. Yeah, no company allows you to pre-order 100 phones at a time unless they know there is not much demand out there. For example if Best Buy has a super deal on something most likely they would put a purchase limit on that item of maybe 5 units so that everybody has a chance to get one since there is so much demand!

    I think BB’s strategy is to sell as many as they can top people wanting to make a quick buck by reselling on some auctions site. That way they offload the risk of unsold inventory to these prospective entrepreneurs!

  6. Yah you’re right about 40 actually sorry to burst your bubble…..got anything else you would like to say ;)?

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