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A company and device that sells 6.8m handsets is dead?! Rough number: (sell 6.8M handsets per quarter) / (expected $1B loss this quarter) = they're losing $147
by ctdonath 13y ago
A company and device that sells 6.8m handsets is dead?!
Rough number: (sell 6.8M handsets per quarter) / (expected $1B loss this quarter) = they're losing $147 on every handset.
They'll have to raise the price on the device (every device sold) some 33% just to break even. And that's assuming sales don't plummet as a result of a significant price increase.
"I'm dead, I just haven't stopped moving yet." - Zaphod
- tanzam75 13y ago> Rough number: (sell 6.8M handsets per quarter) / (expected $1B loss this quarter) = they're losing $147 on every handset. That's not how it works. $934 million of that $965 million loss comes from a non-cash charge for inventory and supply commitments. In other words, they lost money on the phones they did not sell. Assuming they can scale down linearly, this will not be a recurring expense. Excluding non-cash charges, and adjusting for taxes, Blackberry lost $248 million last quarter. This is how much they lost on the phones that they actually did sell. But even that's not quite good news. Because Blackberry sold only 3.7 million smartphones last quarter -- the 6.8 million number was for first quarter. So $248 million / 3.7 million = $67 loss per phone.