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Summary:

BlackBerry is betting big on its new operating system and phones but they these aren’t yet resonating with consumers: Just 2.7 million handsets sold last quarter run BlackBerry 10. That’s just half of Nokia’s Windows Phone sales for the first quarter.

BlackBerry Z10 White

The first full fiscal quarter of new BlackBerry handset sales is over and on Friday, the company reported 6.8 million handset shipments, up 13 percent from the prior quarter. A 15 percent boost in revenues over the last quarter amounted to $3.1 billion. But the company lost money — a contrast from the prior quarter — amounting to an operational loss of $84 million. And the new operating system isn’t resonating with consumers in terms of sales.

In a statement, CEO Thorsten Heins pitched the company’s efforts as just beginning:

“We are still in the early stages of this launch, but already, the BlackBerry 10 platform and BlackBerry Enterprise Service 10 are proving themselves to customers to be very secure, flexible and dynamic mobile computing solutions. “

It’s true that it’s early for BlackBerry’s overall strategy, but it’s later in the overall endgame of smartphone domination. And the new Z10 and Q10 phones don’t yet seem to be helping: The company says only 40 percent of the total phones shipped run BlackBerry 10, which is a key part of the transition from legacy to leading devices.

That works out to a scant 2.7 million BlackBerry 10 handsets shipped to carriers and retailers — not sold to consumers — in a single quarter. Let’s put that in perspective:

I agree it is early for BlackBerry yet, but I don’t think sales of the new BlackBerry 10 devices are meeting or exceeding expectations. For one thing, I really anticipated that the loyal BlackBerry fans would be more receptive to the new phones and software. This group should be the company’s bread and butter for sales. I’ll grant that the new devices aren’t yet available in every market, which could be part of the issue.

Regardless, I expected more. So too did investors if the stock price is any indication: As of this writing, BlackBerry shares are trading down nearly 27 percent.

bbry+stock

Even though the company has undergone cost-cutting measures since Heins took over, it doesn’t appear that greater sales will help boost profits in the near future: BlackBerry is now providing guidance for a loss in the next quarter as it will continue to push BlackBerry 10 and its enterprise services in more markets.

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  1. We just bought 3 Lumia 521s. They are better than I and S Phones for Price and Functionality.

  2. Well if Verizon and ATT wanted to kill any hope of a Blackberry comeback in the US market space they are sure doing a good job of it..

    Neither firm has allowed a release of a single OS upgrade since they originally started shipping the phones a few months ago.

    Now the current version of the OS used pretty much everywhere else in the world is 10.1 (10.2 is almost out) but we in the US are still stuck with the old 10.0.10.116.

    OS 10.1 provides major updates to battery life and is required to allow BB10 users to run the Skype, the current version of Facebook for the platform and so much more.

    US cellular firms forking the OS via blocking BB10 OS updates and application developer platform options.

  3. The Q10 is only just out in the US market, and it is too early to weigh in on the all touch Z10. BlackBerry is just ramping up in the US market with more new phones to come with bigger form factors and other options. Marketing needs to improve in the USA. Everywhere else the OS 10 phones are doing better with the lower priced Q5 just now launching. BlackBerry needs a new OS 7 phone with BIS and BBM to offer free and competitive messaging on a cheap phone. There is more to come.

  4. Everyone seems to gorget that BlackBerry 10 devices are USD $500+ each, but Lumia’s major seller is the 521 at just USD $150. Comparing only high-end BlackBerry’s to Nokia’s entire smartphone line is misleading.

    It would be more interesting to compare revenue on handset sales and revenue for the entire company per quarter, rather than just number devices shipped.

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