This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Don't Answer BlackBerry's Call; Nobody Else Is

In its most recent first-quarter earnings announcement, BlackBerry would not give specific sales numbers for its phones -- which is already a horrible way to start things off. But it did say that a total of 6.8 million phones were shipped in the first quarter.

Of those 6.8 million units, which were below analysts expectations of 7.5 million, only 40% of them were BlackBerry 10 devices. Meaning that only 2.7 million smartphones were the Q10 or Z10 devices.

Granted, the Q10, BlackBerry's new smartphone with a physical keyboard wasn't even for sale for a month in the U.S. at the time of the report. While that's a viable excuse, the Z10 didn't lend much of a hand in that department, since it has been available since January at the earliest and since March 22 in the United States.

Total smartphone sales were down 14% from the previous quarter, along with subscribers, which dropped to 72 million from 76 million, a decrease of 5.2% from the previous quarter. Adding salt to the wound, BlackBerry management said they would no longer be providing "nonfinancial material."

In other words, they will no longer provide subscriber growth -- or lack thereof. I think what management meant to say is that these numbers will likely remain bad and they don't want to talk about them going forward.

Just for some fun facts, Apple's iPhone 5 nearly outsold all of BlackBerry's smartphones in its weekend debut. Not in its first quarter. Not in its first month. No, its first three days of availability, Apple sold over five million units.

Taking it one step further, Samsung's Galaxy S4 sold 10 million units in its first 28 days of availability. So Essentially, Samsung sold 47% more S4's in a third of the time that BlackBerry sold its entire lineup of smartphones. Apple's iPhone 5 sales nearly doubled that of BlackBerry 10 devices (Z10 and Q10) in three days compared to BB10's three months.

The conference call was pitiful, and those who are saying they're holding on to BlackBerry stock have a long ways to go. I don't know how Heins is convincing anyone to stick around, but there's no way I'm touching BlackBerry.

The stock has been smashed in the days since it reported earnings, off nearly 36% from the closing price on June 27. But deservingly so. BlackBerry put up awful numbers, showed confusion over its Playbook tablet and refused to give key figures for investors and analysts. How can you trust that?

If BlackBerry is going to abandon ship on the Playbook to "focus on smartphones," then maybe management should actually focus on smartphones.

At the time of publication the author was long AAPL.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,119.86 -52.82 -0.31%
S&P 500 1,990.17 -4.12 -0.21%
NASDAQ 4,527.6490 -0.04 -0.00%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs