BlackBerry's Lack of Apps Killed New Phones: Blair

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Sept. 20 (Bloomberg) -- BlackBerry, the smartphone maker that’s evaluating a sale, will cut 4,500 jobs and record an inventory writedown of as much as $960 million after a new set of devices failed to catch on with consumers. Wedge Partners' Brian Blair speaks with Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

You put forth.

$3 billion of cash.

$2 billion a residual value.

524 million shares outstanding.

In theory, that would be $10 a share residual valley.

Unless there is a bit, we are going significantly south.

--bid, we're going significant lee south.

-- it definitely south -- significantly south.

Let's take a look at it right now.

Do you think will be taken out in that 7 to 8 range?

The biggest concern is what happens to their subscribers.

They're holding onto 70 million subscribers, mostly using those old blackberries.

Then he comes due, what is the value of their i.t.? in the meantime, you have these wonderful apps being built . no developers ever moved to the bb10 os.

To me that was a sure sign it was going to be a failure.

Apple is a closed system, and yet people flock to it.

When you are selling 30 million units a quarter, developers care.

Where are the subscribers mostly?

International, and consumer.

They're mostly consumers in parts of the world such as indonesia.

Blackberry is still very popular in latin america people that's where it the bulk of those subscribers were -- latin america.

That's where the bulk of those subscribers were?

The language in the release -- blackberry saying they will recognize revenue of $3.7 million smartphones -- 3.7 million smart phones sold.

Do they normally say it this way?

They often talk about how many are shipped.

I can ship a couple blackberries right now.

They typically do not report sellthrough.

Usually have to dig in the queue . let me throw this out there.

Does blackberry take a page out of dell's book and say, maybe we need to go private, nobody will buy us?

Him i come down to it if there is nobody on the table the next few months.

-- it might come down to it if there is nobody on the table in the next few months.

Smartphones are half of the global cell phone market.

People do like keyboard-based blackberries in emerging markets.

If somebody can sell those at $150, there is still a business opportunity there.

That is what happens with blackberry.

They're not competing with android or apple.

Lower tier being the operating word.

8.45.

This text has been automatically generated. It may not be 100% accurate.

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