Analyst: BlackBerry to cut production by 10%

Analyst: BlackBerry to cut production by 10%
Analyst Peter Misek had been positively bullish about BlackBerry earlier this year, so when he tells his clients something negative about the company, it has even more impact than usual. That is why we sat up and took notice on Tuesday morning when the Wall Streeter reported that the buzz on Wall Street is that the Canadian handset manufacturer had decided to cut production by 10%.

After using his abacus and slide rule, Misek sees BlackBerry cutting overall production by 10% from 5.5 million handsets to 5 million for the current quarter. BlackBerry 10 flavored models are in for a higher percentage cut with production of the company's newer models being sliced to 2 million from 2.5 million for a 20% drop in production. Misek notes that BlackBerry 10 devices are not particularly selling all that well and that the so-called entry-level BlackBerry Q5 (priced higher than most other phones in its class) is collecting dust on the shelves.

Let's face it. While the BlackBerry 10 models were a nice leap up for BlackBerry, the BlackBerry Z10 and BlackBerry Q10 are up against some heavy duty competition. And at this point, even the 5 inch BlackBerry Aristo Z30/A10 probably is not going to save the company. BlackBerry's board understands the dire position it is in, at least we think it does, and is considering going private to get Wall Street off its back. The optimism of a new year has turned into the cold grey reality that perhaps BlackBerry is worth more broken up into pieces and sold to the highest bidder.

source: Ubeergizmo



1. chunk1x

Posts: 248; Member since: Jun 25, 2011

Bye Berry!

2. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

How about cutting price by 10%???

5. ihatesmartphone unregistered

Only 10%?? I want more than that. Perhaps....around 50% should be...err nice XD

3. msa1988

Posts: 418; Member since: Mar 30, 2010

RIP BB - my first smartphone.

4. Arthurhkt

Posts: 727; Member since: Apr 19, 2012

Well..... Actually kinda simple, just lower down your product price, such as older model which run on OS 7 or release a medium-low budget phone which run OS 10, then i guess at-least you can survive in the market again.

6. Fernandezxc

Posts: 43; Member since: Mar 12, 2012

yap, exactly they should go to making budget phones atleast for now to save them

7. msa1988

Posts: 418; Member since: Mar 30, 2010

I don't think it's that easy. Every phone is made and priced with a specific profit margin. They may have spent too much money developing BB10, which leads to a higher price as the only way to get back in the black. If they lower their price, they won't be profitable and will continue to lose all of their investors. Long story short, they're screwed.

9. Arthurhkt

Posts: 727; Member since: Apr 19, 2012

Well i can understand with OS 10, but what about OS 7?

8. trickster_qc

Posts: 107; Member since: Jun 18, 2013

Everyone was waiting for the Q10. And the phones works just fine and has a great keyboard but it is WAY to expensive. It should have been 50$ or less on a 2y plan instead of being priced the same as an iPhone or a Samsung Galaxy. That was their 2nd strike.

10. Arthurhkt

Posts: 727; Member since: Apr 19, 2012

Honestly Q10 is a good phone from BlackBerry, it did bring back the uniqueness of BlackBerry to market, but the things was it is way too expensive, i mean even Apple iPhone are cheaper than it..... How they expect it to sell well?

11. slaggyb

Posts: 218; Member since: Oct 19, 2011

I so love my blackberry Q10.. I can't see me going back to my note 2.. BlackBerry needs full comeback.

12. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Powerhouse to footnote. CEO, too bad he walks golden paths no matter the outcome.

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