BlackBerry Shipped Lower than Projected BB 10 Smartphone – Projecting Few More Quarter of Transition Pain

BlackBerry in its earning release highlighted that total 6.8 Million smartphone were shipped during Q1, FY13 as against analyst projection of 7 Million. BlackBerry shipped 2.7 million BB 10 smartphones and form lion share of Blackberry total smartphone shipment. Analyst projected 3.5 Mn BB10 shipments for Q1, FY13. The lower than expected pick up BB10 shipment impacted overall revenue and total smartphone shipment. It said it ended the quarter with about 72 million subscribers — down by 4 million from the prior quarter overshooting analyst projections. The continuous fall in subscriber number is giving competitor to grab high ARPU Enterprise Prosumer’s. Blackberry in its earning release, projecting net loss during Q2, FY13 citing continuous investment in supply chain, advertisement and new product rollouts to calm down increasing growing impatient investors. Today BlackBerry Stock is getting hammered with more than 20% cut and very bad result would be grabbed by competitors to snatch their value service customer base.

Blackberry Again Fall Short on Unit Shipments and Revenue during Q1,FY13

BlackBerry Inc. released shocking result with net loss for its fiscal first quarter, as smart phone deliveries came in below Wall Street’s predictions, though the organization linked part of the revenue and net loss miss to “Venezuela Forex limitations.”

Total income was $3.1 billion dollars, up from $2.8 billion dollars in the same period last year. Adjusted net reduction came in at $67 thousand, or 13 cents per share. Analyst expectation was 7 cents per share profit, $3.4 Bn Revenue and average projection of 3.3 million BB10 smartphone shipments.

BlackBerry blamed Forex limitations which impacted modified results negatively by about 10 cents per share, and negatively impacted service revenue by $72 million.

Communication Traffic Monitoring – New Mechanism to Enhance National Security

In recent weeks, most of the major Internet companies are in limelight for sharing access to US government regulators to increase vigilance across user segment. The news attracted concerns from user at one end whereas denial from mentioned Companies. The move was called “attack on privacy”. In India also, Regulators are thinking of taking help of ISP’s (Internet Service Providers) to tap in traffic to increase vigilance across communication link. In my point of view, the monitoring management of communication link attached with different delivery network is good initiation from government regulators. We hear hacking, information breach, Loss of data and unlawful communication flowing here and there. In 2011-12, Blackberry was forced to setup their servers in India and also allowed lawful intercept facilities to government agencies. In an environment, where unlawful entities are getting more tech savvy and using Internet and Mobile communication oriented closed loop communications to be in touch with each other. The new proposed mechanism would help government to keep close eye on unlawful entity and act before it’s too late. Law abiding user should not get feel threatened by government initiative where the contents are reviewed for national security and security of one’s information. It is going to help enforcement agencies to get early warnings and initiate action to mitigation potential threats across multiple verticals of crimes.

HTC Targeting 15% market share in Indian Smartphone segment by FY13 end– Isn’t it too difficult to achieve

According to GFK,– research agency assessment, HTC currently sitting on 6% of Indian smartphone market. Based on Cyber Media Research, FY12 smartphone volume size was 15.2 Million achieving YoY growth rate of 35.7%. In FY12, on volume side, HTC shipped 912000 smartphone. As local and global giants like Samsung, Apple, Nokia, Sony, Karbonn, Micromax are offering attractive payment options along with cutting edge features to attract to be converted smartphone users in India. Recent advertisement global and domestic players indicates that mid-level feature phone user adoption can be converted into smartphone user and expecting more than 40% growth YoY in Smartphone volume. Even if I consider the lower end with 30% growth YoY; it would translate total market size of around 20 Million. Targeting 15% pie from the same would require HTC to achieve 225% YoY. That too in a scenario; where domestic players like karbonn, Micromax, Lava are refreshing their device portfolio every quarter. The domestic players promoted canvas, Titanium are getting good reviews and are unable to fulfill volume demand. We also should not forget Lumia 500 series product line for the new smartphone users. Since, both Nokia and HTC offer WM based smartphone and it would be tough task HTC sales executives to convince Indian user that HTC is better than Nokia. Indian smartphone users consider brand name act as major component of Indian subcontinent decision making process. In my point of view, I would be salute HTC sales team even if they achieve 10% market share by the end of current fiscal year.