Is BlackBerry Finally Headed Towards a Turnaround?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

June 19 (Bloomberg) -- Bloomberg’s John Butler examines first-quarter results from BlackBerry as the company saw cost cuts and a new strategy from Chief executive Officer John Chen produce a smaller loss than expected and also takes a look at the first smartphone offering from Amazon. He speaks on “In The Loop.”

Butler who covers telecoms.

You and i have talked about the struggles at blackberry for many years.

Izzy finally getting something right?

He is, actually.

He is the right man at the right time and he is doing a great job with blackberry.

What caught my attention on the call this morning is he said the restructuring on the cost side is largely done in the focus is going to turn to a return to revenue growth.

I think he will get there.

He is a software man by background.

If you look at the assets that blackberry has come in he has looked at the company has more than a device company.

He is looking at blackberry enterprise services which is the back office mobile management.

They have a huge patent portfolio and he is doing a great job with blackberry messenger.

Again, i think they are off to a good start and this restructuring and he is the man to watch.

It seems that way but it's too early to tell.

It is.

What do you think will be the biggest revenue driver for blackberry?

It's tough to say at this point.

I still have my eyes on the device portfolio.

I say that because they are coming out with a classic.

I still see all these people with these old blackberries out there and the classic is fashioned after that with enough aged operating system.

I have yet to talk to someone who has bought a new blackberry who has complained about it.

They all say best phone i have ever owned and i love it.

We will see.

It's early days but we will see.

Speaking about phones, what do you think of the amazon smartphone?

In my view, amazon disappointed me a bit.

It was a conventional phone at a conventional price.

I think if you are going to go at the handset market which is brutal, you either have to have a very strong brand which they don't in handsets or you have to compete at the low end of the market and they did not come out with that.

If this were a free phone, we would have a different conversation.

It is priced at $199 for a two-year contract on at&t. amazon is a retailer at heart.

What they are really after is raising the average transaction for prime customers.

If that's their idea of success, can they sell enough phones to have the prime users get that average transaction number up?

The answer may be yes to the definition of success for amazon may be different.

For them, it won't to be about the total -- it is not the share number.

Exactly, how many people can they get to use that phone to use their other services to buy products.

Who do you think their customers for this phone will be?

I think it will be the heavy amazon user.

And they are out there.

Will they offer discounts or some incentives?

They have one incentive in place which is not bad see you get one year of prime for free which is a $100 value.

It cuts the price in half of the phone.

There are people like my wife who loves to buy stuff on amazon.

It's the easy button.

You can have it in your hand and it's one click and you are the better off.

John, thank you so much for

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change