The BlackBerry Priv is the company’s first Android smartphone, and the handset appears to be doing well for the company according to their CEO, John Chen. This marks a significant shift for BlackBerry, which has traditionally relied on its own operating system. The move to Android was seen as a necessary step to stay relevant in a market dominated by iOS and Android devices.
BlackBerry recently announced that they had earnings of $548 million in the quarter to the 28th of November 2015, which is up some 11.8 percent on the previous quarter. This increase in revenue is a positive sign for the company, which has been struggling to regain its footing in the highly competitive smartphone market.
Sales Performance and Market Reception
Whilst John Chen did not give any specific information on how many BlackBerry Priv handsets have been sold, he did say that “the initial 30 days of sales has been quite positive. I don’t want to overhype things. It’s an expensive phone.” This cautious optimism suggests that while the Priv has been well-received, the company is aware of the challenges it faces in a market where consumers have many choices.
The company sold a total of 700,000 phones in the last quarter. They also mentioned that the average price of handsets sold was around $315, which is up considerably from the $240 average for the same quarter last year. This increase in the average selling price indicates that consumers are willing to pay a premium for BlackBerry’s new offerings, which is a positive sign for the company’s future.
Strategic Goals and Future Plans
John Chen also mentioned that he is continuing to try and make their hardware business profitable. You can see what he said about his plans below:
“My first goal is to get us into a break-even position with the device business, because you really couldn’t do anything strategically with a business that continues to lose money,” he said. “We’re in that ballpark now.”
This statement highlights the company’s focus on achieving financial stability in its hardware division. By reaching a break-even point, BlackBerry would be in a better position to make strategic decisions that could lead to long-term growth and profitability.
The BlackBerry Priv’s success is crucial for the company as it represents a new direction. The device combines BlackBerry’s renowned security features with the flexibility and app ecosystem of Android. This combination aims to attract both business users and general consumers who prioritize security but also want access to a wide range of apps.
Moreover, the Priv’s hardware features, such as its physical keyboard, high-resolution camera, and robust build quality, set it apart from many other Android devices on the market. These features are designed to appeal to BlackBerry’s traditional user base while also attracting new customers.
The BlackBerry Priv’s initial success is a promising sign for the company. While there are still challenges ahead, the positive reception of the Priv and the increase in average selling price indicate that BlackBerry is on the right track. The company’s focus on achieving profitability in its hardware division is a sensible strategy that could pave the way for future growth. As BlackBerry continues to innovate and adapt to the changing market, it will be interesting to see how the company evolves and what new products it will introduce in the coming years.
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