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BlackBerry Passport and BlackBerry Classic not selling says Morgan Stanley

Posted: , by Alan F.

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BlackBerry Passport and BlackBerry Classic not selling says Morgan Stanley
Brokerage firm Morgan Stanley said in a note to clients on Monday, that the two new BlackBerry handsets that were supposed to sure up the company's recovery are not selling. Morgan Stanley's analyst covering the company said that sales of the BlackBerry Passport and BlackBerry Classic are "not tracking anywhere close" to expected sales numbers.

Morgan Stanley says that only 8000 units of the business-centric BlackBerry Passport and old-school BlackBerry Classic have sold in the current quarter. Morgan Stanley says that the company needs to sell a total of 2-3 million units of these new models during its 2016 fiscal year. In addition, the brokerage firm said that it is unlikely to sell the targeted $500 million in software revenue that the company has been aiming for.

In the note, Morgan Stanley said that the BlackBerry name is becoming a hard sell, even to enterprise customers. When the Passport first launched with its wide 4.5-inch 1440 x 1440 screen, and touch-enabled physical QWERTY keyboard, it sold out 200,000 units quickly. A second batch was also sold out. AT&T recently launched a specially revised version of the phone for the U.S., with rounded corners.

The BlackBerry Classic, which is also available from AT&T, brings back the design of the BlackBerry Bold 9900 but with the BlackBerry 10 OS. It features the old-school trackpad and function keys along with keyboard shortcuts. North American pre-order inventory of the phone was sold out back in December.

Morgan Stanley said on Monday that it is reiterating its $7 price target for the stock and keeping its underweight rating. BlackBerry's shares are currently trading at $9.65, off 16 cents for the day.

Thanks for the tip!

via: Benzinga.com

94 Comments
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posted on 16 Mar 2015, 13:10 11

3. Mxyzptlk (Posts: 12979; Member since: 21 Apr 2012)


Pricey without value won't bring sales.

posted on 16 Mar 2015, 14:09 17

11. downphoenix (Posts: 3165; Member since: 19 Jun 2010)


Apple doesn't seem to struggle with doing good sales with that. :p

posted on 16 Mar 2015, 14:36 6

18. meanestgenius (Posts: 11548; Member since: 28 May 2014)


Lmao! Indeed.

+1

posted on 16 Mar 2015, 14:53 7

21. AlikMalix (Posts: 5836; Member since: 16 Jul 2014)


Apparently you don't know what value means. Don't worry, they will teach u that in highschool.

Basic economics lesson: if it's priced $10,000 and sells well - it's valued/priced correctly. If it's priced at $100 and does not sell it's overvalued/priced incorrectly. And at some instances if the manufacturer cannot manufacture something fast enough to need demand the item is deemed undervalued.

Basic supply and demand are part of basic economics that they teach in middle school... Applied logic is a virtue that you must develop on your own when u grow up. Good luck.

posted on 16 Mar 2015, 17:16 2

36. Mxyzptlk (Posts: 12979; Member since: 21 Apr 2012)


You just contradicted yourself.

posted on 16 Mar 2015, 17:27 2

37. VZWuser76 (Posts: 4185; Member since: 04 Mar 2010)


Most of the time yes, but there are exceptions. Take the pet rock. It was introduced in 1975 and sold for $3.95 a pop. It reportedly sold around 1.5 million units. Now there is demand, and making demand. Rocks are everywhere, why would you go out and pay $3.95 (which is closer to $17 today) for something that is readily available? Bottled water is another one, it costs more than gasoline in the same quantity and is available from your tap. The moral of the story, never underestimate how stupid people can be.

posted on 16 Mar 2015, 17:14 2

35. Mxyzptlk (Posts: 12979; Member since: 21 Apr 2012)


Should I prove you wrong or are you ready to put on the dunce cap?

posted on 16 Mar 2015, 13:33 4

4. MrHate (Posts: 226; Member since: 09 Feb 2015)


Well 1.992.000 to go. Good luck.

posted on 16 Mar 2015, 13:42 1

5. darkoman4 (Posts: 164; Member since: 30 May 2014)


This must be a mistake. It is impossible to have only 8000 units sold in one quarter.

posted on 16 Mar 2015, 14:35 5

17. tacarat (Posts: 769; Member since: 22 Apr 2013)


Talk to Amazon or Facebook.

posted on 16 Mar 2015, 14:59 2

23. lyndon420 (Posts: 4372; Member since: 11 Jul 2012)


...or microsoft :-)

posted on 16 Mar 2015, 16:14 2

34. tacarat (Posts: 769; Member since: 22 Apr 2013)


No, no. My brother has had 2 of their phones. He loves that they're solidly in 3rd place.

posted on 18 Mar 2015, 05:43

69. JaneChenLong (Posts: 374; Member since: 18 Mar 2015)


Microsoft KIN sell LESS than 8000 unit and got canceled.

posted on 16 Mar 2015, 18:30 1

38. 87186 (Posts: 272; Member since: 01 Aug 2014)


nice try.

posted on 16 Mar 2015, 13:44 3

6. jsjammu (Posts: 84; Member since: 13 Nov 2014)


They need to just sell the company to either Google or Samsung

posted on 16 Mar 2015, 13:50 1

8. TechKnowledge (Posts: 55; Member since: 05 May 2013)


Did you omit Microsoft for any particular reason? I'm just curious.

posted on 16 Mar 2015, 14:57 1

22. AlikMalix (Posts: 5836; Member since: 16 Jul 2014)


.... Or Apple? I think blackberry is invaluable and we all want our favorite brand to buy it. But I think BB is just having a bad moment. I think they got the brains to get them out of this hole. I'm extremely surprised the "passport" isn't selling well - it's an awesome concept.

posted on 16 Mar 2015, 15:01 4

24. lyndon420 (Posts: 4372; Member since: 11 Jul 2012)


The idea is to bring the company back to life bud, not devalue it by getting ms involved. (Did I just fall for your click bait? Probably lol)

posted on 17 Mar 2015, 01:26 2

45. Dr.Phil (Posts: 1161; Member since: 14 Feb 2011)


I'm pretty sure the last company that was sold to Google, Motorola, was picked up for their patents and then thrown away as soon as they could. I wouldn't call that a good thing.

Samsung already has a partnership with Blackberry and I'm willing to place a bet that the upcoming Slider shares some hardware made by Samsung. In return, Blackberry offers Samsung exclusive software content.

posted on 18 Mar 2015, 05:45

70. JaneChenLong (Posts: 374; Member since: 18 Mar 2015)


Actually, that's a good things. The patent got used. If BB bankrupt without being sold to Google or Samsung, the patent will end up in patent troll. But.... I think most of BB useful patent already expired, otherwise BB have a great patent but lousy execution.

posted on 16 Mar 2015, 13:48 5

7. Phonedingo (Posts: 392; Member since: 16 Aug 2014)


Not surprised that they're doing bad, but this bad is comical.

posted on 16 Mar 2015, 14:02 2

9. meanestgenius (Posts: 11548; Member since: 28 May 2014)


This is total BS. The shorts are just out for blood, as usual. March 27th, when BlackBerry reports it's quarterly earnings, is drawing near, so of course we hear of bogus news to drive the stock price down. If this were the case, then where did Chen get the 200,000 figure from concerning initial sales of the Passport? And why would he have said that the sales of the Classic have been better at launch than the Passports 200,000 at launch? This story reeks of BS.

I'm willing to bet good money that when BlackBerry reports it's numbers at the end of the month, we will see a different picture entirely. Anyone who believes otherwise is fooling themselves.

posted on 16 Mar 2015, 14:22 8

13. Alan01 (Posts: 371; Member since: 21 Mar 2012)


Shorts are devious no doubt, but the previous sales of the Passport touted by Chen covered the prior quarter.

Regards,
Alan F.

posted on 16 Mar 2015, 14:29 1

15. meanestgenius (Posts: 11548; Member since: 28 May 2014)


It's already been reported by BlackBerry that the bulk of Passport sales were not recognized in the previous quarter. They said they would be reflected in this quarter.

posted on 17 Mar 2015, 01:24 2

44. Dr.Phil (Posts: 1161; Member since: 14 Feb 2011)


@meanestgenius is correct, the majority of sales of the Passport and Classic were not reported in the last quarter. They will go down in record under this quarter. Part of that is because the Classic was released after the quarter ended and the other part is because they didn't have enough supply of the Passport to actually complete the sales so those were unreported.

posted on 18 Mar 2015, 05:48

71. JaneChenLong (Posts: 374; Member since: 18 Mar 2015)


I think we need to wait for 27 March 2015 to know the truth.

My bet is, BB passport got around 100K order, and John Chen bluff it was 200K. By the time they need to write it on the book, they said part of the sale will be put on next quarter, hopping the sales would increase.

But then... in the next quarter... the sales is diving, and because they already put the bluff number in quarter before, and they can't bluff forever, this quarter aint pretty for them.

posted on 18 Mar 2015, 08:38 1

80. meanestgenius (Posts: 11548; Member since: 28 May 2014)


I think you have absolutely no idea what you're talking about.

posted on 16 Mar 2015, 14:34 3

16. Scott93274 (Posts: 4605; Member since: 06 Aug 2013)


I want to believe that BlackBerry will do well and turn itself around, but in all honesty I just don't see it happening. Without disrespecting the quality of the goods are services that BlackBerry provides, the expectations of the consumer both public and private on what they expect of a smartphone is simply not being meet by the company, weather it OS's GUI, or the hardware itself. And one major truth that Apple can abide by is that branding is imperative, BlackBerry was king in the pre-iPhone era, but that was nearly 8 years ago now.

posted on 16 Mar 2015, 14:41 2

19. meanestgenius (Posts: 11548; Member since: 28 May 2014)


You're looking at BlackBerry from a consumer perspective and as a company as dependent on hardware as Apple or HTC. Their software is what is and will carry them through the enterprise market, which is their intended market to begin with.

The same way Apple's brand name is a driving factor in the consumer market is the same way BlackBerry's brand name is in enterprise. Trust me, the numbers quoted by this analyst is pure BS and short covering.

posted on 16 Mar 2015, 14:49 1

20. Scott93274 (Posts: 4605; Member since: 06 Aug 2013)


You're right, I am looking at it from a consumer perspective, and maybe I'm wrong, in which case you can gloat all you like and I will admit to being short sighted. That being said, it was my honest view on the situation, and it shouldn't be too long before we hear official financial reports from Mr. Chen.

posted on 16 Mar 2015, 15:12 1

26. meanestgenius (Posts: 11548; Member since: 28 May 2014)


I won't gloat when it turns out that you're wrong ;)

Seriously, I know it's your honest opinion. You don't even comment on BlackBerry articles all that much, and you never troll them.

I'm looking forward to March 27th when BlackBerry releases it's quarterly earnings report. It's going to be very interesting.

posted on 16 Mar 2015, 15:18 1

27. Scott93274 (Posts: 4605; Member since: 06 Aug 2013)


lol, I did once, but then you put me in my place.

posted on 16 Mar 2015, 15:25 2

30. meanestgenius (Posts: 11548; Member since: 28 May 2014)


Oh, that's right...ah! Water under the bridge, my friend, lol.

posted on 17 Mar 2015, 12:56 1

52. xq10xa (Posts: 692; Member since: 07 Dec 2010)


The phone doesn't sell. Cell phone accessories sales on eBay and Amazon are good indicators. Look at the ranks. Really low. No one is buying this phone.

posted on 17 Mar 2015, 13:12 1

53. meanestgenius (Posts: 11548; Member since: 28 May 2014)


Incorrect assumption in BlackBerry's case. Most BlackBerry users by their accessories from CrackBerry, shop.blackberry.com, or other BlackBerry centric sites. Or they're like me, and have their devices "naked".

posted on 17 Mar 2015, 14:46

55. xq10xa (Posts: 692; Member since: 07 Dec 2010)


Not saying the phone isn't good or Blackberry sucks. Truth is phone is just not selling. I would say it's selling good for being a BB in today's world and with it's current price tag.

posted on 17 Mar 2015, 15:06 1

56. meanestgenius (Posts: 11548; Member since: 28 May 2014)


I didn't say that you said any of that. It may not be moving units like the iPhone or Androids greatest, but it is selling fairly well.

Anyway, on March 27th, we will know for certain.

posted on 17 Mar 2015, 18:16

65. xq10xa (Posts: 692; Member since: 07 Dec 2010)


I didn't mean it at you sorry. It was for another comment. Well tell some of your homies to go on Amazon or eBay...cuz we got stock piles of it selling for $3 and it won't move. I don't get it....I saw that the phone is selling at #68 out of unlocked phones even when compared to $150 phones. Where are these BB users!!?

posted on 17 Mar 2015, 18:47 1

68. meanestgenius (Posts: 11548; Member since: 28 May 2014)


Shopping elsewhere for accessories, apparently. Lol. Must be getting better quality merchandise elsewhere. I can attest to that, even though I don't use any of the few cases I've purchased for my Passport. I like for people to see that I'm using a BlackBerry.

posted on 17 Mar 2015, 16:50 1

57. Mxyzptlk (Posts: 12979; Member since: 21 Apr 2012)


Everything you said can be summed up in one word: denial.

posted on 17 Mar 2015, 17:01 1

58. meanestgenius (Posts: 11548; Member since: 28 May 2014)


Everything you said can be summed up in one word: trolling.

posted on 17 Mar 2015, 17:26 1

60. Mxyzptlk (Posts: 12979; Member since: 21 Apr 2012)


Wasn't talking to you.

posted on 17 Mar 2015, 17:33

62. meanestgenius (Posts: 11548; Member since: 28 May 2014)


And?...

posted on 17 Mar 2015, 18:14 1

64. Mxyzptlk (Posts: 12979; Member since: 21 Apr 2012)


And I wasn't talking to you. Not hard to understand.

posted on 17 Mar 2015, 18:43 1

67. meanestgenius (Posts: 11548; Member since: 28 May 2014)


Again, and? There has been plenty of times when I wasn't talking to you, and yet you inserted yourself into the conversation. Don't like it done to you? Then you don't do it. If you do it, don't get salty when it gets done to you.

Not hard to understand.

posted on 16 Mar 2015, 14:21

12. downphoenix (Posts: 3165; Member since: 19 Jun 2010)


Those numbers are really low if it's true, but at least with ATT and Verizon beginning to carry the phones, that should help the numbers. Not everyone can pay $400 or $600 on the spot for a phone.

posted on 18 Mar 2015, 05:52

72. JaneChenLong (Posts: 374; Member since: 18 Mar 2015)


and not everyone want to sign a 2 years contract getting less than it should have. I think those phone won't easily beat Galaxy S6 and iphone 6.

posted on 18 Mar 2015, 08:40 1

81. meanestgenius (Posts: 11548; Member since: 28 May 2014)


And what makes you think the Passport provides less than other handsets? Have you ever used one, or are you just assuming?

posted on 16 Mar 2015, 14:24 3

14. cornerofthemoon (Posts: 590; Member since: 20 Apr 2010)


Oh 5hit

posted on 16 Mar 2015, 15:05 4

25. JunitoNH (Posts: 1779; Member since: 15 Feb 2012)


In other words, RIP.

posted on 16 Mar 2015, 15:23 3

28. BobbyDigital (Posts: 1926; Member since: 29 May 2014)


I highly doubt that what Morgan Stanley is reporting it true. They are no friends of BlackBerry and would love to short their stock.

That said, we'll know the truth come the 27th of this month. But Morgan Stanley should be careful… The last time someone delivered erroneous information about BB10 device sales, Blackberry called for an investigation into their practices and it turned out that they were lying and they now face jail time.

posted on 16 Mar 2015, 15:27 1

31. meanestgenius (Posts: 11548; Member since: 28 May 2014)


Absolutely correct, BobbyDigital. And I hope BlackBerry does the same thing with this rotten analyst house.

posted on 16 Mar 2015, 15:24 1

29. pegasso (Posts: 274; Member since: 27 Nov 2011)


i thought the Passport is a nice phone,
until i learned that it has a non-removable battery...

posted on 18 Mar 2015, 05:53

73. JaneChenLong (Posts: 374; Member since: 18 Mar 2015)


I will buy BB Passport if it has Android 5.1 Lollipop. I hope BB change their mind, and re-release the passport with lollipop.

posted on 16 Mar 2015, 15:30 3

32. JesseJames (Posts: 134; Member since: 22 Feb 2015)


I don't feel sorry for these guys at all, the people at blackberry really seem to have their heads stuck in the sand. I would have thought they would have woken up by now, they need to realize that its not 2006 anymore.

posted on 16 Mar 2015, 15:42 2

33. meanestgenius (Posts: 11548; Member since: 28 May 2014)


Spoken like someone who has never used a BB10 device before, as well as someone that believes that "if it's on the internet, it must be true."

Ignorance truly is bliss.

posted on 16 Mar 2015, 19:32 4

40. Cyberchum (Posts: 675; Member since: 24 Oct 2012)


I get it bro, you're a blackberry loyalist but replying to every comment must be tiring even for the genius. Give it up about that enterprise BS because blackberry is still targeting regular consumers. This is not the Symbian-WinMo-BB dogfight, this is totally a new arena and take it or leave it, blackberry will never gain a meaningful smartphone market shares AGAIN!

posted on 16 Mar 2015, 19:57 1

41. meanestgenius (Posts: 11548; Member since: 28 May 2014)


I get it too, "bro". I'm not responding to "every comment", just the ones I choose to that are obviously full of statements that are incorrect. Nothing wrong with someone correcting another person, especially when they're speaking on something that they clearly know nothing about. Last time I checked, this was a COMMENTS section to a smartphone blog, one that you're free to engage others in, as long as you're not being offensive. I understand that you just don't like BlackBerry, like so many here, and don't understand that their MAIN focus is enterprise.

You clearly don't understand who BlackBerry's targeted audience is. The consumer market ISN'T it, per se. The only regular consumers that BlackBerry is focused on are those that actually buy BlackBerry products. It's a small group, compared to Android and iOS, but it's a dedicated group. BlackBerry's primary focus is enterprise, and whether you choose to accept it or not, that doesn't stop it from being any less true. If you were actually paying attention to what BlackBerry has been doing at all under Chen's leadership, you'd see this. But instead, you're like most others, blinders on firmly, only seeing them as a hardware company.

It doesn't make any difference to BlackBerry if they don't have "meaningful" market share in the consumer smartphone market space. They're transitioning into a software-reliant company, with the hardware as a side-gig. Enterprise is their primary focus. Pay attention. Read other sites besides Boy Genius and Android and Apple blogs. Try viewing a BlackBerry centric side, one that's actually going to focus on what BlackBerry is actually doing, and where they're actually going. You might just learn something.

posted on 19 Mar 2015, 23:13

96. tom.howard1978 (Posts: 107; Member since: 26 Feb 2015)


Great response. I totally agree with you. They will continue to lose market share and fold or be bought. All this hack does is comment on every blackberry comment. Oh they are in enterprise and own half the market. Come on kid this company is a failure and you do not have to be a rocket scientist to see this. Many companies are leaving or have already left BlackBerry

posted on 20 Mar 2015, 03:25 1

97. meanestgenius (Posts: 11548; Member since: 28 May 2014)


I'm the hack and yet you come trolling to every BlackBerry article without a shred of proof, never posting any links to back up your BS, and running like a scared little girl when I counter your FUD with facts?

Yeah, whatever Jr. Until you can posts links proving your BS, you're just another troll wishing for the demise of BlackBerry, which isn't going to happen.

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