BlackBerry Ltd Struggling With Limited Passport Availability

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BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) launched its Passport smartphone amid much fanfare last month. The Canadian company sold over 200,000 units of Passport on the first day of launch. Canaccord Genuity analysts T. Michael Walkley and Siddharth Sinha said in a research note that consumer response exceeded management’s expectations and initial build estimates.

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Passport requires non-standard components

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Surveys conducted by Canaccord Genuity reveal limited availability of Passport. Many carriers, retailers and online stores have run out of stock in the U.S., UK and Canada. The company is currently busy manufacturing more units. But the problem is that Passport’s unique screen size and form factor may result in longer manufacturing cycle times.

Passport requires non-standard components due to its square display. Further, BlackBerry recognizes hardware revenue based on sell-through rather than shipments into the channel. It prompted Canaccord Genuity analysts to lower their sell-through estimates for Passport and the upcoming Classic for the second-half of FY2015.

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The research firm expects BlackBerry to sell 1.4 million BB10 devices in third-quarter, and a big chunk of that will be Z10 devices that have a lower ASP. However, Walkley and Sinha expect trends to improve after the launch of BES 12 in November. They expect BlackBerry to reach cash-flow break-even by the end of FY2015 and post non-GAAP profitability in the second-half of FY2016.

BlackBerry expected to post 4 cents in Q3 losses

Due to reduced hardware sales estimates in the later half of current fiscal year, Canaccord has also reduced its FY2016 loss estimates from 9 cents to 12 cents. For the current quarter, analysts expect BlackBerry to report $880.6 million in revenue and 4 cents in losses. For the full-year 2015, the Canadian smartphone maker is expected to generate $3.66 billion in revenue and $0.25 in losses per share.

Canaccord Genuity maintains its Hold rating on the stock with $10 price target. BlackBerry shares rose 0.44% to $9.10 in pre-market trading Tuesday.

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52 COMMENTS

  1. Its amazing how you people try to bring the stock prices down knowing full well your gonna triple your money on berry in the future. Anything for a dollar I guess.

  2. you DEVVV are everywhere on every tech site bashing BBRY in the very possible way. it seems u can`t sleep the night u don’t bash BBRY. keep calm have a brain and come with positive and evidence based criticism. by ur comment it seems u are the insider in BBRY lol. plz next time be knowledgeable and comment with a sense of sound criticism not like biased and hatred comments which u have trolled all over tech sites wherever BBRY is mentioned.

  3. OMG……tell ya what Devvv, why don’t you peddle this amazing smart phone design to Apple? They are the only company with pretty much ZERO innovation in the last few years.

    Maybe they could use your “help”

  4. what a pathetic, imbecilic and retarded article Valuewalk allowed this Vikas Shukla to publish online. he has no idea whatsoever he is writing and why. his sole purpose is surely to bash BBRY but instead it turned out to go in favor of BBRY as evident by all the comments. such stupid idiot moron writers should be prescribed with anti psychotics so that they come to their senses and write something concrete and palatable.

  5. it must really be like fresh piss in your cornflakes every day now that the Passport is doing well huh Devvv? Wait until the Q20 hits the market.

    You’re gonna need a bigger breakfast boll Devvv

  6. by this standard, even the apple watch is “struggling” to produce. announced 2 months ago and to be released 4 later… you have any better description of that?

  7. Another paid article to bash BB. How to transform a very positive news in negative. You based your article on Concord’s reports? Give me a break.

  8. whoever wrote this article has a clearly negative bias….”struggling” to produce… give me a break. putting a negative spin on positive results. why not just say its sold out and demand is high? its clear valuewalk is dumb in its analysis.

  9. The BlackBerry Ltd (BBRY) Passport Is Gaining Popularity 0

    BY SOLON HARMONY B. DOLOR ON OCTOBER 14, 2014COMPANIES, MOBILE, TECH

    BlackBerry Ltd (NASDAQ:BBRY)’s Passport is now in the top 5 phones of popular phones site PhoneDog, Cam Bunton said in a video update from the site.

    The entry of the curiously-designed smartphone from BlackBerry Ltd (NASDAQ:BBRY) to the PhoneDog top 5 smartphones mark its popularity as the list is made from votes of readers of the site.

    “There’s a lot to like about it even though it hasn’t been designed specifically with the average consumer in mind. And what excites me the most is the new physical keyboard,” Bunton said.

    He noted that the keyboard of the new BlackBerry Ltd (NASDAQ:BBRY) passport is “a big, chunky, easy-to-type-on, fantastic physical set of buttons” yet it also comes with touch-sensitive technologies that makes it capable of doing other functions.

    BlackBerry Ltd (NASDAQ:BBRY) launched the BlackBerry Passport in September. It has already garnered accolades like being the most popular phone among readers of The Verge as well as becoming the biggest selling phone on Amazon.com, Inc. (NASDAQ:AMZN)’s website shortly after it was made available.

    John Chen, CEO of the Canadian handsets maker said shortly after the phone’s launch that 200,000 units of the smartphone have already been ordered by people from around the world.

    Meanwhile, Bunton said that the screen of the BlackBerry Passport gives it an advantage over other smartphones out in the market because it makes it easier for people to read emails, websites and other text-based material.

    He added that though the BlackBerry OS is not the best in terms of native applications available, the Passport makes up for it because of its interesting design. He even predicted that based on the way the new smartphone is trending on the site’s list, it is going to the top spot.

    Fourth on the people’s choice list of the site is the LG G3. Next is the iPhone 6 from Apple Inc. (NASDAQ:AAPL). Clinching the second spot is the iPhone 6 Plus. Winning the top place is the HTC One M8.

    Prem Watsa’s Fairfax Financial Holdings is a big investor in BlackBerry Ltd (NASDAQ:BBRY). The Canadian firm reported owning about 46.65 million shares in BlackBerry by the end of the second quarter of the year. This stake makes up 32.67% of the firm’s whole portfolio and was valued at the time the firm reported the stake at about $477.77 million.

  10. Foxconn reportedly has (2) factories in Mexico that it bought from Motorola, but PP is still made by BBRY -http://forums.crackberry.com/blackberry-passport-f434/foxconn-working-overtime-965264/

  11. Dude if the square corners bug you so much, buy one, take it to a bench grinder and grind the sharp corners off. Make a YouTube video in the process. Like they did with ole bendy by drilling two holes in and bolting it to a plank. Make a plan, sheeez!

  12. The Passport was completed before Chen came into office. Dev, if you are so sure about your phone design, pitch it to the Chinese. They can make it for a small run. BlackBerry isn’t into making phones any more they rather sell software to others. Phones will allow then to demonstrate their technology

  13. Correction…..lower end Blackberrys are made at Foxconn like the Z3. The Passport, Z30, Q10 and Q20/Classic are all made in Mexico. Like you, I thought they were too but I found myself quickly corrected.

  14. I’m happy that blackberry is doing well and I can’t say how much i love my passport. it’s worlds apart from my last iphone and with all the bendgate going on with apple and samsung, i’m so glad i went against my better judgement. Keep it up blackberry and i will be a customer for life! as for the comments about how bad they are doing? Really? Sold out and they have been down graded? You obviously sound like an apple fan boy, enjoy your warped phone, it goes well with your warped thinking process…

  15. Don’t buy one if it isn’t for you, that simple. So simple in fact that a smart guy like you should have figured it out. You want everyone out of there. Why don’t you go find a hobby you like, Blackberry is so bad. To you always bad since forever, so why do you waste your time ruining these articles for people that love Blackberry.

  16. Nothing you ever say is right it is just slanted against Blackberry. If you have an idea why don’t you get off these boards and go out and sell it. Otherwise you are just another nerd in his gotch hiding behind your computer.

  17. Blackberry’s are made at Foxconn just like all the Apple iPhones. I don’t see the problem with having to wait for a Passport, it’s not life and death, it’s a phone. Besides, when professionals (the primary targeted consumer) are busy now using it, and their constituents get to see it in action, this will create buzz, and demand will increase. It’s a brilliant plan: limit supply, create buzz, and that way you won’t over build and have excess inventory.
    By the way, Blackberry is no longer a handset company, they are a Mobile Device Management company, and there QNX division is used in virtually aspect of life including automotive infotainment, the military, hospital MRI machines, high speed trains, places where its imperative that the system be reliable.
    QNX will soon be working with municipalities to have the ability to not only send data seamlessly regarding the locations of potholes, but also the size of the hole. Municipalities will then be able to send out crews to repair the potholes, there’ll be no more angry voters calling City Hall complaining about the same potholes and car damage and flattened tires will be kept to a minimum, all achieved through QNX installed in the dashboard. Cheers!

  18. Devv, you seem like the type of guy who does not know that no means no,lol. Blackberry does not need your help/saving whatever,lol. Go help a needy child overseas, you will feel better about yourself, seriously. Life is too short to hold a grudge, move on.

  19. Devv, your “belief” is a far cry from reality. I happen to know a vendor for Blackberry that is SWAMPED, I’m talking 8 hour shifts bumped to 24 hour shifts. That comes about from demand! Sure wish I had a product I was on such demand.

  20. Devv, your words give you away so easily,lol. The jealously you have towards Blackberry is an obsession, verging on a sickness IMHO. Please seek help, your relatives will thank you.

  21. Blackberry does not make any of the parts, as for shortages I believe its just a ploy to give the impression the Passport is doing good.

  22. Devv, you have a smart phone design that will save the world,lol. Go chat with Mr.Foreman, I hear he does nifty commercials where he helps you patent and sell your ideas,lol. You might end up being famous, won’t that be so cool? Your relatives will be do proud of you. He he.

  23. Devv, you know not what you speak of yet again,lol. I used to build automated assembly line systems and I know you need PRODUCT to feed that line. If Blackberry does not have the product to feed the line you will have shortages until the product is in line with capacity needs. Blackberry vendors can’t be expected to have known how much of a success Passport has turned out to be, as such I’m sure some vendors are scrambling to play catch up with the needs of Blackberry. You do know Blackberry does not make all their own parts, do you not?

  24. Notice how my prediction of the outcome of Blackberry is coming true?? I knew this since the introduction of BB10 and devices. Now I will say this once again. ” If Blackberry does not investigate my smartphone design, as to restart the smartphone industry, its over for them” This must be done but under my terms and conditions. Chances are they wont even consider this, so sorry to say Blackberry is a sell.

  25. well Wacousta, Look at the design of the device and be honest in what you think of it. Why would they make it as wide as it is tall??? why would they do that, how do you carry that around? What was your first impression of the Passport?? Was it ” oh my god” but than thought after oh well maybe it will work? I am obsessed with convincing Blackberry to drop the design before it ruins them. I want John Chen out of there before its too late for Blackberry to be able to recover. I have relatives that live in Waterloo that are afraid of losing their jobs due to Blackberry’s wrong choices.

  26. Devvvv, given the plethora of comments you’ve made about the Passport, you are more obsessed with the phone than the fans like it.

  27. Jeng, Blackberry make sharp corners to their devices also, Sorry to say that is a poor design. buying a case for rounded corners fits way better than sharp ones. Sharp corners wear holes in pockets pretty fast also.

  28. wacousta,, The Passport is not popular and Blackberry knows it. Blackberry is now trying to fool investors just by saying they cant keep up. Blackberry ploy was to purposely not to make enough devices so this story could be told. Once a tooling manufacturing line has been produced, the odd ball size screen is no excuse, unless the production line broke down.

  29. Blackberry Passport sold out everywhere! Sales exceeds managements best estimates and analysts expectations! This is bad news for Blackberry. This is not a political statement, but It reminds me of the McCain spin during the 2008 campaign. It got so ridiculous it formed one of the the best known memes of our generation – – “…and that’s good news for McCain!” In this case the meme is, and that’s bad news for Blackberry. Could the twist get any more ridiculous than what was just posted? The meme any clearer? So BB is failing because they already old out of all their initial devices and can’t make devices fast enough for consumers to purchase, So there will be fewer sales than say they hadn’t sold out and they didn’t need to keep making more? Consumers who bought on-line all over the world and are now awaiting shipments will push BB sales lower because there won;t be enough people left to purchase the device when it’s available? Honestly, if this makes sense to you please explain it to me, but first take your Lithium or I won’t be able to hear you over the voices in your head.

  30. Still better than Sony holding unsold inventory of Xperias. Selling out of stock is Xiaomi’s successful strategy whereas Blackberry is unintentionally so(maybe).

  31. “BlackBerry Ltd Struggling With Limited Passport Availability” Do you mean that the Passport is so popular that it has sold out of stock? Why not say that instead of trying to twist obviously good news into something negative.

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