Chen now 99% sure that BlackBerry will survive

Chen now 99% sure that BlackBerry will survive
Yesterday, BlackBerry reported its fiscal third quarter 2015 earnings report. The company was cash flow positive and operating earnings showed a 1 cent a share profit, although on a net basis the company was 28 cents a share in the red. After the report was announced, BlackBerry CEO John Chen spoke with Bloomberg's Emily Chang about BlackBerry's turnaround.

When BlackBerry's CEO was asked about his chances of completely turning around the company, the optimistic Chen said that the odds were 99% in favor of his success. The executive also piqued our interest by saying that BlackBerry would be introducing a new software product next June that will convince those using two devices, to stick with just a BlackBerry instead.

When asked who was buying the new phones, he unsurprisingly said that many of those buying the BlackBerry Classic were coming from BlackBerry's installed base. Chen noted (as we have previously) that the Classic is a perfect fit for those who love the BlackBerry Bold 9900 hardware, but want to have a device that runs the BlackBerry 10.3.1 OS build (which includes BlackBerry Assistant). The BlackBerry Passport is a different story, notes Chen. He sees new BlackBerry buyers purchasing the flagship model along with former 'Berry owners returning to the fold.

Chen also revealed that BlackBerry sold through 93% of its inventory last quarter. That is the kind of news that a CEO loves to hear and loves to repeat to investors. He also pointed out that BlackBerry is trying to catch up with back orders for the Passport, noting that lead times have been shrinking. Still, orders placed during the September through November quarter were still being shipped as late as December 12th, and those sales were not included in the just released report. Those orders could help BlackBerry report a positive surprise when it comes time to announce its fiscal Q4 results.

If you're a BlackBerry fan, you have to be pretty impressed by what John Chen has done in the 13 months since he replaced Thorsten Heins as BlackBerry CEO. Watching the CEO respond to these questions, it really does feel as though BlackBerry's survival is no longer a question mark.

source: Bloomberg via Crackberry



1. shahrooz

Posts: 792; Member since: Sep 17, 2013

Well done, impressive

24. AnTuTu

Posts: 1612; Member since: Oct 14, 2012

Great stuff Chen. Not to forget that BB will also sell software as well. Chen mentioned this couple of weeks back :)

42. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

BB and its CEO should be very proud. Good for them! Just wish Nokia a much bigger and stronger company would have survived as well.

87. nokia12

Posts: 610; Member since: Nov 19, 2013

well Thorsten Heins was not like eflop with a MS mission, the former genuinely tried and failed.. the latter won by deliberately trying to bring down a company 25 million $ + a guaranteed well paying top position in Microsoft speaks for itself anyways nokia still survives .. still there is hope, once they are free from Ms contract they'll return to phone business once again .. till then its about keeping brand name alive and relevant hence the brand licencing to foxconn

8. meanestgenius

Posts: 22035; Member since: May 28, 2014

John Chen continues to impress and lead BlackBerry in the right direction, much to the trolls dismay. Onward and upward, BlackBerry. Kudos, Chen!

14. Crispin_Gatieza

Posts: 3137; Member since: Jan 23, 2014

BB has always been able to supply devices to all the major US carriers as well as a healthy supply of factory unlocked models. The only casualty I see is Windows Phone who seems content with carrier exclusivity arrangements. If Chen can convince his engineers to spend some time on developing a decent camera, there will be other CEOs worrying.

15. snowgator

Posts: 3621; Member since: Jan 19, 2011

Where Chen seems to get is that what BlackBerry has to offer the most is the software solutions for business. Think about it: Anyone who owned a BB of course thinks about the keyboard and excellent audio and durable hardware, but it was the security, email exchange, and communication abilities that made it the device it was. BB could never keep up with Android or iOS for the consumer, and they lost their way trying to. I think BB needs to have handsets to become a top end company again, but to survive? No, they are doing what they need to do- getting into software solutions and security. In that regard, they are a poor Microsoft. Software and enterprise solutions pays the bills, all other venues just add to the future and security of the company. BB just does not have the diversity or the stream of profits of MS. What they do have is a saavy leader and a sound vision. Good for them. I will admit it: 2 years ago I was writing them off. Now I am happy to say I think they will be around for my kids to talk about.

21. snowgator

Posts: 3621; Member since: Jan 19, 2011

Wish I could rephrase that ugly first sentence of mine... but we only get 240 seconds to edit. Sorry to all educated users of PA for the destruction of our proper English.

16. xtroid2k

Posts: 601; Member since: Jan 11, 2010

Well I'm sure that BlackBerry will succeed. To all the haters who have had blinders on for the last 13 months. I'd say this is your wake-up call

18. TimCook

Posts: 450; Member since: Oct 23, 2014

If blackberry goes Android they won't only survive!! They will succeed!!

31. meanestgenius

Posts: 22035; Member since: May 28, 2014

Because Sony and HTC are succeeding right now with their all-Android approach, right?

36. TimCook

Posts: 450; Member since: Oct 23, 2014

No, they are not

40. meanestgenius

Posts: 22035; Member since: May 28, 2014

You just proved the point I was making. Thanks!

48. TimCook

Posts: 450; Member since: Oct 23, 2014

you are right, Only samsung is making real money out of Android

81. SaintHelena

Posts: 397; Member since: Nov 05, 2014

Even the new Nokia make android tablet. Xiaomi, Coolpad, Micromax, OnePlus, Lenovo, Huawei, ZTE, and lots of other Android OEM make money too. The good thing about android is all the bad company that were not good will die. They must adapt to lean way. If BB can't making profit in android world too, than that's mean BB is too fat and should die anyway.

49. Commentator

Posts: 3723; Member since: Aug 16, 2011

From what I understand, your point is that HTC and Sony are not succeeding, NOT that Blackberry won't succeed.

51. meanestgenius

Posts: 22035; Member since: May 28, 2014

My point is that Android is not the answer for everything and I believe BlackBerry will succeed using its own OS derived from QNX.

80. Scott93274

Posts: 6033; Member since: Aug 06, 2013

Can we all just agree that Windows is not the answer?

83. SaintHelena

Posts: 397; Member since: Nov 05, 2014


22. lebigmac506

Posts: 56; Member since: Sep 17, 2014

It'll survive as a softwate company. Their hardware division will die, unless they adopt android, even forked.

32. meanestgenius

Posts: 22035; Member since: May 28, 2014

Android is not always the answer, as HTC and Sony will attest to... BlackBerrys hardware division will survive.

45. BobbyDigital

Posts: 2125; Member since: May 29, 2014

The only Android OEM's turning a profit besides LG and Samsung are the Chinese OEM's using mostly forked versions. So going Android doesn't always help.

61. Dr.Phil

Posts: 2357; Member since: Feb 14, 2011

I still don't understand why people think adopting Android is the answer. If they adopt Android then they lose their entire meaning: being a secure platform. Android is open to many security flaws. The Blackphone was supposed to be built as an ultra-secure Android device and was able to be hacked within 15 minutes when they demonstrated the device a few months ago at a convention. Also, Google has been forcing people to buy into Google services now with Android. It's no longer this "open source" that it used to be, it's actually quite locked down with Android 5.0. I think if Blackberry can create a meaningful alternative there may be people who are willing to switch that aren't as involved in the Apple or Google ecosystem or feel locked down to one.

82. SaintHelena

Posts: 397; Member since: Nov 05, 2014

forking out amazon fire OS MIUI (xiaomi) OS CyanogenMod Google give away the android for free. So, google want their service in android to make money. But if you don't want to use Google service you can have a FORKED android OS that don't have Google service at all.

88. Dr.Phil

Posts: 2357; Member since: Feb 14, 2011

If you offer a forked version of Android then you still cannot have the Google Play Store unless you offer so many Google applications standard on the device. So, what would be the point of creating an Android device if you can't access the Play store? Blackberry 10 already runs Android apps. You also then become dependent on Google for you to update your OS. Updates could be vital for a company like Blackberry that has clients reliant on their security features and an update could offer improvements to that. So, why would they want to wait for Google to not only release the latest Android build but then spend months upon months configuring it for Blackberry customers? It's not a good business model and why a lot of manufacturers are making their own linux-based OSes. Also, even if that were the case, that still doesn't answer the question of security? Android is far less secure than Blackberry's OS. There's also been many manufacturers looking to distance themselves from Android. Samsung comes to mind with it's Tizen OS. LG has also looked into developing it's own OS with the patents it got from WebOS.

98. SaintHelena

Posts: 397; Member since: Nov 05, 2014

Dr.Phil If you know CM (CyanogenMod), or perhaps XiaoMi, then you understand that your comment above is NOT TRUE!!!! You can forked android and put google application. The thing about forking is you can please both of the customer who want google ecosystem and the one that do NOT want Google ecosystem. Furthermore, WELCOME TO THE OPEN SOURCE. BB can fix the way BB-Android work without the need of help from google. Where's Tizen device? Tizen is only a backup plan, a do not put your egg in 1 basket. Same as WebOS.

99. meanestgenius

Posts: 22035; Member since: May 28, 2014

You CANNOT run Google Services using "forked" Android. That includes the Google Play Store. You can run ANDROID apps on "forked" Android smartphones and tablets, of which there are many, but not Google Services. It's not the same thing. BlackBerry running Android apps, especially if your using a BlackBerry handset running 10.3 or greater, work excellent. No "fixing" is required. What Dr. Phil is saying is correct. Android IS far less secure than BB10. Yes, Tizen and WebOS is a "do not put your eggs in one basket plan", but that's EXACTLY the POINT Dr. Phil was making. Manufacturers do not want to be completely reliant on Google for updates. Sure, you can root your device and put a modified version of Android on it, but that's doing the same thing, not relying Google for the update. Samsung releasing a Tizen device next month.

84. SaintHelena

Posts: 397; Member since: Nov 05, 2014

It is fun to see John Chen racing with it self from ZERO to NINETY-NINE.

92. tenzin

Posts: 111; Member since: Dec 20, 2013

Personally saying that BlackBerry 10 is best os at the moment. Runs smoothly on dual core processor as fast as androids on quad cores and it is not such boring like iPhone and wp

96. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Yep...this thread was hijacked...

* Some comments have been hidden, because they don't meet the discussions rules.

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