Thought: Licensing BlackBerry 10
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Thread: Thought: Licensing BlackBerry 10

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    AVPTI's Avatar
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    Post Thought: Licensing BlackBerry 10

    We all know Thorsten and crew have intentions of releasing more devices this fiscal year (I don't say calendar, because I don't see them all launching before 2013 ends). These devices will consist of a high-end flagship and lower-end, entry level devices. But should BlackBerry produce their own low-end devices?

    Personally, I don't think so. I don't think there is any money in that market. They sell a device for $200, but it cost $250 to produce, plus other expenses (R&D, marketing, etc). BlackBerry also doesn't get the $3/month from these users anymore.

    This is why I think allowing a 3rd party OEM, like Samsung, HTC, LG, Sony, ZTE, etc, to build these lower end devices will be better for BlackBerry and better for BlackBerry 10. Those companies have better economies of scale. They can produce the same amount for less than BlackBerry can. For example, they can see a device for $200, but produce it for $195 (not actual numbers, just theory). If BlackBerry charged, say $10, per device it would allow for better margins and for BlackBerry to focus on the OS, along with making up for some loss service revenue.

    I'm not saying BlackBerry should ditch the hardware business. There will always be a market for high-end devices from BlackBerry.

    Love to hear some of your thoughts on how BlackBerry should handle the potential lower-end market and licensing.
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    I think they should try their own hardware first. If they doesn't work out, they can always license out BB10 for lower end devices.

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    Without any service revenue coming from those low-end devices, BlackBerry is losing money.

    We haven't seen/heard too much (other than that cruel April Fools joke ) on how BlackBerry will leverage its assets, like BBM, financially, but as of now, licensing is the only means of generating income from lower end devices.
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    ice2921's Avatar
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    BlackBerry still needs to sell "lower-end device" there are certain demography's that rely on these devices. I agree that licensing is still a viable option.

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