BlacbBerry Priv Hype: Real or Unwarranted?

The Canada Based smartphone company's new Priv device sees price cuts in Canada.

After quite a few years, Blackberry Ltd has reported earnings results which are quite well for the once-dead company. Even though the reports released after the launch of the Android based smartphone were comparatively satisfactory turns out that investors are more concerned about the fact that latest smartphones usually get the highest sales in the initial days of the launch. Keeping in mind that the flagship phone was in the market two weeks prior to the earnings results, the sales figures should have been higher.

However industry experts have given admirable reviews for the Blackberry Priv as it become the smartphone of the holiday season. The Canada based phone maker has stated that it will make the Priv available in over 31 more countries in a time span of three months. We know that the novel device is in demand because Wal-Mart listed it as “Out of Stock” after the first day of its release.

Despite the fact that there’s demand for the product the question arises as to why the mobile security provider organization refrained from reporting the details of the sales of Priv. Another question arises as to why carriers have put price cuts of the device all over Canada? During the holiday shopping season, many stores and carrier that were carrying the smartphone put a discount of as much as $50 to $150 on it.

The chief executive officer John Chen had openly stated initially that incase the device does not make profits for the company; it will discontinue making these products and focusing on its other businesses. Since the company did not report the sales and other details of the product in its earnings report; people have started to wonder whether the Android powered handset was even a big sensation or the business just portrayed it to be.

In the third quarter of the current fiscal year, BBRY reported that it sold over 700,000 units of the device. According to calculations, it can be concluded that if 50,000 units were sold then in the latest quarter above 7-8% total handsets might have been sold yet.

The device was priced at $700 which put it in the top phones of the industry, competing directly with Apple, Inc. and Samsung Electronics Ltd. Because Blackberry had always been one of the top sellers in the industry, it has to strategically price its product to include it as one of the popular products. This price tag has definitely been a con for the company, as many people who are aware of the organization would rather choose a brand name that is popular nowadays and pay such a hefty amount for it.

Canada Based Blackberry Ltd is Back in the Game; Revenue Increase By 11.8%

Better days might be in the future for the Canadian tech business, thanks to the new smartphone increasing revenue and share price has been witnessed

In the latest quarter, the Canadian technology corporation, Blackberry Ltd reported an increase of 12% in its revenue all thanks to the new Blackberry Priv. According to the chief executive officer of the tech corporation, John Chen the results for the new smartphone have been quite positive. He did not give any specifications.

In the last two years, this has been the first time that the Canadian mobile technology business has reported two consecutive quarters with increasing revenue. In the last three months, which ended on November 28, 2105, the technology corporation reported an increase of 11.8% in revenue from the quarter previous it. According to the financials that were reported by the company on Friday, it is quite evident that it managed to cross all the expectations of the analysts and people.

However it is still too early to declare a full on comeback for the tech company in the smartphone market but BBRY was cheered on the basis of its software as well as hardware. Canada based business that has been declared dead many a times has been performing fairly well in the market lately.

At the trading session on Friday, Blackberry stock was called off at a share price which indicated an increase of 10% at $8.61 per share. For the same period of the current year, the net loss of $89 million was reported by the tech business. This net loss was also a first and showed improvement from its previous net loss of $148 million in the same quarter of the previous year.

Investors are very optimistic towards Blackberry Ltd as they can see that it is working on becoming more than just a software company and is also working on its security conscious reputation. It was also reported by the tech business that it managed to make revenue of $162 million from its software and services. This revenue amount indicated an increase of as much as 183% in comparison to the same quarter of the previous year.

Even though the CEO of Blackberry stated that if the Priv doesn’t do too well in the market, there’s a possibility that it will leave the smartphone market but since its release, the first android based phone by blackberry has been doing fairly well. This smartphone is mainly aimed at customers who have privacy on top of their list when purchasing a phone. The CEO stated in an interview with CNBC that the director of the BBRY's software business is really good and that it entirely wants to work on its software business now.