BlackBerry sells just 1.9 mn smartphones in November quarter

BlackBerry reported revenue of $793 million in the third quarter of fiscal 2015.

The Ontario-based smartphone vendor generated 46 percent revenue from hardware, 46 percent from services and 8 from software and other revenue during the three months ended November 29, 2014.

The company sold nearly 1.9 million BlackBerry smartphones during the third quarter.

For comparison, smartphone leader Samsung shipped 73.21 million smartphones during the third quarter (July-Aug-Sept) of 2014 against Apple 38.18 million, Huawei 15.9 million, Xiaomi 15.7 million and Lenovo 15 million.

BlackBerry made a profit of $6 million against net loss of $148 million. This is a big achievement for the Canadian smartphone vendor.

BlackBerrry CEO John Chen said: “We achieved a key milestone in our eight quarter plan with   positive cash flow. We also attained another important milestone in the release of our new enterprise software products and devices.”

John Chen, Executive Chairman and CEO at BlackBerry
BlackBerry said it will be expanding its distribution to drive revenue growth.

As part of its guidance, BlackBerry said it continues to anticipate break-even or better cash flow from operations.

Meanwhile, BlackBerry said BES12, a cross-platform EMM solution includes support for Android 5.0 Lollipop. BES12 support for Android Lollipop was made available to customers in early November. The capability underscores BlackBerry’s commitment to security in managing devices from multiple platforms in the enterprise, and further demonstrates the breadth of BES12 functionality.

BES12 provides expanded EMM capabilities that can manage any mobile deployment model such as BYOD, COPE and COBO, and leverages BlackBerry’s infrastructure. The flexibility and scalability of the new BES12 architecture allows customers to transition to a cloud environment.

BlackBerry fails to impress

In the third quarter of 2014, three of the top five smartphone vendors were Chinese. Huawei, Xiaomi and Lenovo grew their collective market share by 4.1 percentage points, said IT market agency Gartner.

“With the ability to undercut cost and offer top specs Chinese brands are well positioned to expand in the premium phone market too and address the needs of upgrade users that aspire to premium phones, but cannot afford Apple or Samsung high-end products,” said Roberta Cozza, research director at Gartner.

Annette Zimmermann, research director at Gartner, said: “Chinese players will continue to look at expanding in overseas emerging markets. In Europe prepaid country markets and attractive lost-cost LTE phones will also offer key opportunities for these brands.”

Gartner expects sales of smartphones to reach 1.2 billion units in 2014.

Baburajan K
editor@gizmolead.com

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