Blackberry 10 arrival in SA

[TheJif]

If you have seen any of the leaked video, showing of the operation of the phone, you would have seen the Blackberry symbol is active, indicating that the phone is connected to the Blackberry Infrastructure.

I think BIS will only be used for specific applications, like BBM.

Blackberry is very successful in SA, thanks to BBM. I can see the way it is used being changed, but it would not make business sense to totally scrap it

 

[AlphaJohn]

If you have seen any of the leaked video, showing of the operation of the phone, you would have seen the Blackberry symbol is active, indicating that the phone is connected to the Blackberry Infrastructure.

I think BIS will only be used for specific applications, like BBM.

Blackberry is very successful in SA, thanks to BBM. I can see the way it is used being changed, but it would not make business sense to totally scrap it

After some reading it does.

Their main market is not 3rd world countries with high data costs, its actually the US and Europe where data plans are cheap. Currently people pay more for normal Talk & Data + BIS in US than say going with Android that only have a Talk & Data.

Example:
Blackberry = $37 p/m (Data + Talk + $10 BIS service)
Others = $27 p/m (Data + Talk)

Some SP's like AT&T takes the knock instead of passing it to the customers and sell BB plans at the same p/m cost. This of course make that they no promote BB's as much as say iOS phones where they get more out of the deal.

Scraping it will make it will make it more attractive in the countries where they do want the devices to cell. MadM's YouTube explain it well. Remember there main profit income is the hardware not the service the service was used as a attraction for the hardware.

 

[SAdata]

After some reading it does.
Remember there main profit income is the hardware not the service the service was used as a attraction for the hardware.

I'm pretty certain I remember reading in Forbes that they made a far higher margin off BIS than the phones. Forbes was talking a <15% gross margin for the phones and around an 80% margin on the plans.. It was on this basis they suggested RIM sold off its phone business and focused on its service business and extend it to other platforms.

I would say that the reason they want to move away from this though is the additional cost in the US (as RIM is completely obsessed with the US market even though its far from their strongest) as you said. I also think its due to the issues where BIS has gone down and generated bad press for them.

However, in developing countries with high data costs where blackberry has been most successful lately this is a death wish. Maybe they will try to keep the terrible OS6/7 devices in developing countries. I don't hate blackberry at all but I think the company is run by idiots who don't know what their priorities are, especially if they kill off BIS.

 

[AlphaJohn]

I'm pretty certain I remember reading in Forbes that they made a far higher margin off BIS than the phones. Forbes was talking a <15% gross margin for the phones and around an 80% margin on the plans.. It was on this basis they suggested RIM sold off its phone business and focused on its service business and extend it to other platforms.

I would say that the reason they want to move away from this though is the additional cost in the US (as RIM is completely obsessed with the US market even though its far from their strongest) as you said. I also think its due to the issues where BIS has gone down and generated bad press for them.

However, in developing countries with high data costs where blackberry has been most successful lately this is a death wish. Maybe they will try to keep the terrible OS6/7 devices in developing countries. I don't hate blackberry at all but I think the company is run by idiots who don't know what their priorities are, especially if they kill off BIS.

Would love to see the Forbes article as that does not compute against actual numbers http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=RIM:CN

 

[SAdata]

I have tried to locate the original text I read but can't. But a quick search shows that their service offerings provide a higher margin than their handsets (as is the case with most businesses - service margins > product margins)

Quotes
1. Shares of BlackBerry maker Research In Motion Ltd plunged more than 20 percent on Friday on fears that a new fee structure for its high-margin services segment could put pressure on the business that has set the company apart from its competitors
2. The services segment has long been RIM's most profitable and accounts for about a third of total revenue.
3. RIM will not be able to sustain profitability by relying on its hardware business alone, said National Bank Financial analyst Kris Thompson

http://www.reuters.com/article/2012/12/21/us-researchinmotion-research-idUSBRE8BK0H120121221

I would look at their financial statements but I'm not quite bored enough to do that.

Yes their hardware sales bring in more revenue (65%) than their services but proportionately less profit. That's why selling the hardware business and growing the services business wouldn't be a terrible idea for investors.

 

[Sponge Bob Square Pants]

Nope meant BIS as in the Internet Service. My sister confirmed it after they had a pre-launch meeting with RIM. The service will still run but only for current ( non-BB10) blackberry's.

BES will also not be supported.

How can BES not be supported when enterprise is the main thing BB cares abt