) Historical & Geographical
Location: In current time (past years and ongoing) demand for BlackBerry
hardware i.e. phones have decreased sharply because of the advent of
smartphones. In 2012, BlackBerry reported device sales of 11.1 million units,
however a year later in 2013, this had plummeted to 6.0 million. In 2014 it saw
a drop to 3.4 million, continuing in 2015 and 2016 with the latter reporting
just 0.6 million sales worldwide.
2) Chronicle of the event: BlackBerry’s
revenues from its Mobility Solutions segment have declined fast BlackBerry’s
(BBRY) chief executive officer John Chen had announced last year that he would
consider making a strategic decision about its hardware business if its
fortunes don’t improve this year. A strategic decision could mean a sale or
spin-off or simply the closure of its hardware business. Fortunes have not
improved. BlackBerry formed new business units—Mobility Solutions, Service
Access Fees and Software and Services. Basically mobility Solutions will
consist of revenues from hardware sales and device software licensing programs.
BlackBerry’s revenues from Mobility Solutions fell 44% last fiscal quarter from
$269 million in fiscal 1Q16 to $152 million in fiscal 1Q17.
3) Breakdown of the event: First, BlackBerry’s telecom partner AT&T
(T) criticized the company’s flagship smartphone, Priv, of “struggling” with
its sales, according to a report from CNET. Then, the U.S. Senate announced
that it will no longer procure new smartphones from BlackBerry. This was a big
blow for BlackBerry, as the company has largely depended on government bodies
for its smartphones sales since governments value the security aspect of
BlackBerry devices. However, with Apple’s (AAPL) iPhones and Samsung (SSNLF)
improving their security features, BlackBerry lost that competitive edge as
4) Consequences of the event:
BlackBerry’s smartphones sales continue to decline to top it all off,
BlackBerry announced that it will discontinue sales of its Classic smartphone.
The decision to axe the Classic smartphone was surprising. BlackBerry had
partnered with all major US telecom providers—AT&T, Verizon (VZ), and
T-Mobile (TMUS)—to sell the Classic. Although the Classic used a dual core 1.5
GHz Qualcomm (QCOM) Snapdragon