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Does BlackBerry Have 5-10 Million Unsold BlackBerry 10 Devices?

school_apples

This wouldn’t be such bad news if BlackBerry was simply honest. A few analysts have been digging through the latest BlackBerry SEC filing and the results confirm some of their fears. Michael Blair over at SeekingAlpha has the best analysis in crunching the numbers but I will do my best to summarize them below. Either way it shows the BlackBerry has millions of unsold BlackBerry 10 devices on their shelves. The numbers break down to BlackBerry selling the following number of BlackBerry 10 devices:

  • Q1: 600,000 BlackBerry 10 devices
  • Q2: 1.7 million BlackBerry 10 devices
  • Q3: 1 million BlackBerry 10 devices

That is a total of 3.3 million devices which is not terrible but it seems like BlackBerry has been building 1.5 to 2 million devices a month since February resulting in 10.5 to 14 million devices produced. If they sold 3.3 and have another 0.5 million in channel then that leaves 6.7-10.3 million BlackBerry 10 devices in inventory that BlackBerry is writing down. The disclosure of $3.1 billion in purchase commitments with $1.5 of that to contract manufacturers means BlackBerry could have another 7.5 million devices on top of the 6.7-10.3 million if they do not find a way to negotiate them down.

This makes me wonder if BlackBerry just needs to discount these phones like crazy and get them into users hands. Better yet would be dropping off thousands of them at large fortune 500 enterprises to get them using BES 10. That might have a chance of putting this chicken before the egg.

What do you think BlackBerry should do with the excess inventory? Its also nice to learn about how many BlackBerry 10 users there are in the wild.

13 total comments on this postSubmit your comment!
  1. Where’s the marketing folks? FIRED!

    • I don’t think they should have a huge firesale as it would hurt the company in the long run as well. These devices are perfectly fine and will still be fine in 2014, but they need to sell off their inventory between now and Christmas.
      First I would upgrade all employees to a new BB10 device.
      I would then offer employees a good discount for their families – 2 additional devices.
      I would then offer BES10 adopters some discounted BB10 devices.
      Contract free, I would sell the Z10 at $350, Q10 at $400, Q5 at $250. Stop trying to sell the Q10 at $599. That’s ridiculous, even for a fantastic device.
      With a 2-year contract, I would keep the Z10 at $50, with the Q10 at $75. The Q5 can be sold for $25. The Z30 can come in at $120 (it’s still brand new). The idea is that you need to get these devices in the hands of consumers.

    • Thorsten has to take some blame here too for not telling us the truth. He must have known that the devices weren’t selling well – marketing was not doing their job. They had to change the image of BlackBerry. They had to put ads on TV and media — not depending on the carriers to sell it. They had to push these awesome devices into the hands of consumers. They did nothing to help that.

      • marketing or not, BB ran out of feet to shoot itself in. It has become a bad reference in the consumer space by selling uncompetitive and very unfinished devices (Storm, Playbook) for 3-4y. Same thing for developers. BES10 was not ready until recently, and enterprise take time adopting new technologies, especially with all the drama surrounding the RIM/BB name in the news.

        COnsidering BB10 does not reinvent the wheel, its going to take them years to turn things around.

        Discount sales to increase the user base of QNX and pounding developpers to come up with the latest apps. Netflix and Instagram top of the list.

  2. Man, not sure what they should do at this point? I own a Z10 and I have to honestly say, it’s by far the best multitasking smartphone I’ve ever used. Simply brilliant. 10.2 major update is coming in a few weeks. Such a shame people don’t realize how amazing these new phones are. Heins and Frank (the marketing manager) should have been shown the door months ago. What a waste.

    • beside the unfortunate app situation, Z10 is a lovely phone. Problem is that its a blackberry. People have no respect for that brand anymore. No matter how good the product is.

      The global landslide BB is in is due to the fact that its a damaged brand, beyond virtually all repair.

    • xBurk
      I got a Z10 also I think I know about 10% of what it can do but I am not sure what it can really do. Is there a place on the web with instructions and such?
      I bought the viki app, not working well with this phone at all – so many bugs and such long delays. Every other app seems to be ok.
      Wish we could have a list of best apps for BB

      Jim

  3. If BlackBerry does have this many phones sitting around they need to market them better and lower the price. Get BB10 out there with as many people as possible.

  4. I agree with fanboi and Bernie. They need to get the devices into people’s hands. PERIOD. If they have to discount them 90% to do then so be it. Their marketing, what little of it they have done, has been pitiful. I’m almost inclined to say out loud (I’ve been thinking it a long time already) that they have wanted to fail. To take as long as they have to get the first devices out and then updates, apps, and just about everything else out to us has been insane. Not to mention the PB fiasco. I truly had such high, high hopes for that thing.

  5. I was wondering if they were going to fire sale their stock (it’s crazy that they’re on the line for so many more to be produced). If they do deeply discount the phones, they should make sure it’s for factory unlocked devices running the latest OS so they really are putting their best foot forward (tell carriers they’ll give them the same pricing if they okay the latest OS). The BlackBerry name has taken a beating, but at the right price many people will be willing to get it as second device or backup phone and may wind up finding out they like it enough to use as their primary device.

  6. I read on the Internet that BlackBerry is providing support to android in its new playbook. If BlackBerry also provides android support in its smart phones, then I think they will not have to face situation like this. However, obviously, they cannot provide android support to smart phones on their shelves; they can only use marketing tricks like lowering price or making some offer to sell them.

  7. I am waiting for a price drop. My current BB is a 8530 but will purchase a new BB10 in a second should they drop below $300.
    I originally paid $299 for this one in 7/2010. The near $600 figure in 2013 is severely overpriced.

  8. i dont think they stupid because they working so hard on the android runtime for the BB10 OS and they will do it so fine then the BlackBerry 10 users will use all apps of android then android = BB10 i bought my BB10 Phone Q5 For a Very Low Price in Saudi Arabia and i like the BB10 OS i Have Used The Samsung Galaxy S3 And Its So Boring BlackBerry IS Another Life I Think People Should Buy BB10 OS Before The New Release OF BB10.2.1 In Jun 2014 Because it will be over Priced .

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