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What's bugging me today.
Blackberry handset maker posting a loss not a prophet is Wall Street was expecting but here's the rub.
Blackberry that earnings statement out doesn't even deign to break down sales numbers for its all important new Blackberry ten the -- -- that -- save the company now certainly to case to put up or shut up and shareholders not happy with the results Blackburn has been down 2830%.
Right now down 25%.
Rather startling how to talk to mark sue you watch -- Blackberry for RB CE joins us now.
Thanks for -- with us.
You know I remember an analyst came out and said gee I think your Blackberry -- sales are doing badly.
The company came out few months ago attacked them and called for some kind of SEC investigation.
Arguing that he was in cahoots with short sellers.
But now we find out that the Blackberry ten to that a conference call apparently -- -- -- all right two point seven million units lower than what Wall Street wanted for the all important new product.
-- -- company protest a little bit too much about the analyst who said ten sales were doing well.
I think it's still very early but I mean didn't mark for us was three and a half million units and that's the first full quarter for the -- should have been better.
And what we're finding that it's the -- actually changes week by week yet a company that's launching its products across hundreds of carriers around the world.
Some actually still the early stages but some are actually taking -- digesting their initial shipments which is why I think it's a little bit below expectations near term.
The port numbers I think the lack of -- in terms of the guidance is the big concern.
Yet -- there -- making very bold claims and so you were looking for 3.5 million unit sales of the Blackberry ten they came at two point seven.
I noticed a North American sales dropped 4% vs a year ago quarter.
I had thought when you have a brand new product that your advertise and promote like crazy especially in the North American most advanced wireless market in some ways.
That you ought to have better growth in the US is not a decline in North America what do you think.
Yes so there have been a couple of components -- you have older products at 87 which most people still carry.
The BB ten should be tightened up a little bit faster but I think the slope is a little bit out more than what we expect that.
It's -- -- metric that we watch it's the still end.
And the sell through.
And bought -- you to sell in more products.
Things have to flush out the other ran and I think it's getting a little book but I'll bottleneck for Blackberry right now yeah so I think the event they have to stimulate demand and what we think -- -- the come in the form of two things either its price cuts.
Because it's very competitive or more sales and marketing more appetizing to get people to buy their products and.
Either thing ends up hurting your profit margins for a company of course is doing not so great -- an unexpected loss now they had also another concern.
Up a drop of four million subscribers to this company makes up 70% of its revenue from selling gadgets OK but that other 30% or so -- His services now what do you think about that four million -- if you have a new product out that -- that's supposed to bring you growth.
That's supposed to lead a four million people quit and yet.
The I mean you are you have painted yet the company -- -- now painted themselves in a corner because -- need your subscriber base to stabilize that's right lots of B two million at the moment.
So if you don't maintain your subscribers now you won't have new subscribers to upgrade to in the future.
So it's about it's a tricky balance right now but I think there is still some of -- and in that installed base yet.
So what they need to do is run faster and it's a treadmill game and apple for example they have one of the best devices out there they're still struggling a little bit from an -- struggling a little bit and have a lot of we.
Sources now mark what left quick thing up when you see -- company.
Come out -- attack another analyst.
The question is how the companies do it instead of coming out with real figures -- saying -- wrong kind of this do you ever worry about that you or your next to be attacked.
Yeah I -- me.
We've generally don't wanna be attacked this job is hazardous and that's enough for all of us right but I think that he had that thought is look we we -- -- be very objective when -- look at that day that things can't change but I think god the thought is look.
The data doesn't -- and we wanted to get a focus study to -- up.
Good job Marc thanks a lot happy Friday appreciated.
Bringing your take on Blackberry -- if that's mark sue RBC capital markets.
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