This Day On The Street
Continue to site
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BBRY $7.82 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs