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BlackBerry users aren't worth as much as they used to be

BlackBerry users aren't worth as much as they used to be
A company's enterprise value (EV) is just another metric used to determine the value of the company. Instead of just multiplying the price of a company's shares by the number of shares outstanding to get the market capitalization of the company, EV also subtracts the amount of net cash on the books so that the number reflects a more accurate picture of the true value of the company's operations.

As you can imagine, the EV of BlackBerry has been dropping right along with the value of the stock and is now at $2.8 billion. Taking that figure and dividing the 72 million BlackBerry subscribers into it gives us a value of $40 for each BlackBerry subscriber. That is quite a drop from early 2010 when each BlackBerry user had a value of $866. 

A similar decline is seen in the value of each iTunes user based on the same formula. Using iTunes users as a proxy for iOS users, the value of each user has dropped from $1500 in 2011 to about $450 today. A lot of that decline has to do with the stock price. Apple's shares have dropped about 43% from its peak while BlackBerry's stock price has tumbled an incredible 93%.

The bottom line is that the average BlackBerry and iOS user is being valued more cheaply now than he was a few years ago. Whether it forecasts the end of this amazing ride that smartphones have been on remains to be seen. Smartphone shipments will exceed futurephone shipments in 2013 for the first time ever, so on the face of it, it would seem that the problem is with investors putting too low a value on smartphone users.


source: Asymco via BGR

8 Comments
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posted on 02 Jul 2013, 15:14

1. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)


Therefore, we can deduce from the "formula" that Android users are now worth more than Blackberry and iTunes (Apple) users, respectively.

posted on 02 Jul 2013, 17:31

3. Bernoulli (Posts: 1599; Member since: 01 Sep 2012)


True, when you spend a lot of money (700$) on a cheaply made handset of course the manufacturer is going to benefit big time, take samsuck for example

posted on 02 Jul 2013, 17:53

4. WHoyton1 (Posts: 1635; Member since: 21 Feb 2013)


Samsuck.....a person with sub par intelligence like your self may in fact laugh at that....

posted on 02 Jul 2013, 21:24

7. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)


Awwwwwh, you're just jealous cuz' "you can't afford it, you can't afford it and you 'be on the welfare."

posted on 25 Oct 2013, 05:24

8. MobileKicker (Posts: 212; Member since: 19 Sep 2013)


Love that name dude: samsuck

posted on 02 Jul 2013, 15:48

2. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)


What is a futurephone Alan?

posted on 02 Jul 2013, 18:55

5. fjftokyo (Posts: 57; Member since: 06 Jun 2013)


I just switched to Verizon and bought a Blackberry Z 10 to be honest it's a great phone the battery is okay for my personal needs the browser is great and the camera is super fast compared to my old phones. The app world is a disgrace since all the apps I actually use and need are either in the play store or apples apps store, but I didn't buy the phone because of the company it represents I bought it because it was different then the competition and the Blackberry 10 OS. Most of you will state the same BS about how samsung and android is better and in many ways they are but Samsung has turned into apple and android is everywhere they change somethings but it's still stays the same. Remember when the first i phone came out and how we all had that " WOW " feeling that's how I felt with the Z 10 the OS has lots of potential how many of you can say that Android and especially apple makes you really wanna go out there and buy they're products unless someone else tries to convince you to jump on board instead of deciding for yourself. Blackberry isn't what it used to be but that's okay because Blackberries were the "i phones" and I know that they're going to come back with style.

posted on 02 Jul 2013, 21:04

6. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)


Dude, it's still not too late. I love my Galaxy Note 2 but, in your case, I would even tell you to get a Lumia 928 (if you just want something different). I understand you not wanting to fall into a mold of sorts but, this is a 2-year commitment and you won't get another subsidy discount for 23+ months.

On a personal note, welcome to the best carrier with the bestest service!!

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