BlackBerry's about cash first, telephones second (and that's simply wonderful)
BlackBerry’s future as a phonemaker got here into query yesterday when Reuters reported that CEO John Chen would contemplate promoting its handset division. Naturally, the corporate sought to set the document straight… with a weblog publish from Chen himself revealed earlier at this time.
“I need to guarantee you that I’ve no intention of promoting off or abandoning this enterprise any time quickly,” he wrote, noting that his feedback have been taken out of context. So what precisely did he imply? Chen quietly crashed a reporter’s roundtable with BlackBerry enterprise chief John Sims this morning (apparently seeking a cup of espresso) — this is what he advised us concerning the Reuters interview and the way forward for BlackBerry’s telephones.
“I am working very onerous to discover a approach to earn cash within the handset enterprise. Then the query is ‘for those who do not generate income within the handset enterprise, what are you going to do?’ I stated, nicely, being a businessperson, when you attempt lengthy sufficient and you may’t become profitable, I imply, I am within the enterprise of earning profits. If I can not generate income within the handset enterprise, in fact I can not do the handset enterprise. That is type of like an apparent factor.
However they — some individuals at Reuters liked that final assertion. That turned the large information. There was no information right here. The one information is that we’re dedicated to the handset enterprise, and we will make it work.”
This is the factor about Chen: He is a pragmatist. He is assured that the corporate can earn money whereas making telephones, however he admits that he’d need to rethink that stance if BlackBerry cannot flip its handset fortunes round. That is it. Type of a no brainer, proper? Sims added that there is not actually some extent of no return on this state of affairs, both — BlackBerry will maintain monitoring the state of affairs and cranking out telephones till it is clear it does not make any extra sense to. That milestone might take months, perhaps years to hit. Perhaps BlackBerry will not hit it in any respect, in the event that they get gross sales up and unit prices down.
There’s one thing just a little troubling about the truth that loads of individuals took the headline at face worth and simply ran with it. To many, BlackBerry has already died; its battle already misplaced. That is not completely truthful — there are nonetheless at the least a couple of handsets barreling down the pipeline, and there is nonetheless over $2.5 billion tucked away in Waterloo’s coffers. However it is attainable that the character of the connection shoppers have constructed with BlackBerry — one based mostly on having a bodily factor of their pockets — might ultimately have to vary, not that anybody notably needs it to. And that is the reality.