For starters, BlackBerry will actually have to start selling phones for a change. Without that happening, it doesn't really matter what crazy plan Heins and the BlackBerry board has up its sleeve.
Sadly, that doesn't seem to be an option at the time.
Two more executives
are leaving the company, and the Z10's price has
now been slashed
. BlackBerry's first of two "game-changing" smartphones began selling in the U.S. in March but failed to really drive sales. It was reported that only 40% of the total 6.8 million phone sales in the first quarter were BlackBerry 10 devices, meaning the Z10 and Q10. While both of these numbers were below estimates, many did not expect things to be
The funny thing is, people are still arguing that the sales number was OK, saying that analysts were the ones who were wrong. Classic bull delusion. If BlackBerry were doing well, then analysts would still have been wrong. Only in the latter scenario, estimates would have been lower than the actual figures. However, this is simply not the case.
According to the article in
The Wall Street Journal
, the Z10 took a 75% haircut in its price at both
. The phone used to sell for $199 with a two-year contract, but is now only $49. Likewise, Verizon lowered the price to $99.
The article said: "The Z10 discounting is reminiscent of another weak BlackBerry product launch: The company's PlayBook tablet. A few months after the PlayBook was launched in 2011, when the company reported weak sales of the tablet, retailers began slashing prices. Later that year, BlackBerry wrote down nearly $500 million in unsold PlayBook inventory."
No matter how the bulls try and spin this, it's not a pretty picture. Management isn't bailing on tablets because it believes the future is connectable screens. It's because the PlayBook sucks.
There's no other conceivable reason. But even if Heins and BlackBerry
right about the connectable screen, they still need to start selling smartphones if they want success to follow.
Connectable screens by Bluetooth, wireless, HDMI cord, whatever -- aren't laughable. The idea's not bad. But the notion that tablets will suddenly be irrelevant in light of this "new discovery" certainly is. If this were the case, Apple, Google, and Samsung wouldn't be printing money from their current slates. Instead, they would move to this very technology, where they already have the millions of mobile smartphone users to actually implement such a system.
Although I'm saying investors should sell short shares of BlackBerry after this violent selloff, I have to ask: Why invest in it? You could trade it on the long side, certainly, but please, convince me that the price slashing, falling sales and departing execs make a worthy investment.
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.