I wonder how much of today’s stock plunge was due to mis- handling, mis -wording, mis- marketing, mis-spinning of the Q1 earnings report. Are these reports rehearsed at all with the marketing people? I am there with everyone that bad numbers lead to a plunge, but can what the CEO of a company says exasperate this by the spin the press/media makes of what is said? The old adage holds true that if you have nothing good to say, it is better not to say anything at all, or limit what you say, within the confines of what is required. A statement that BlackBerry 10 is not coming to PlayBook while stating that a new BB OS 7 phone is coming seems odd. It says better to have resources in an old platform than in a new one that loyal people bought into at a premium. Even if this is a thought–no need to say so, if there is no obvious rationale for such a statement, or if it is not relevant with so few PlayBook users. I understand the math/rationale, that there are tens of millions of BB OS 7 users, and only tens of thousands of PlayBook users; more low end BBOS7 market users than high end BB10 market share, and the rate of increase in BB10 market share is not enough to offset the declining BBOS 7 sales due to a shift in “NEW” devices. Yes, we need another BBOS7 device to help us with our sales numbers in developing markets. Maybe the CEO knows something else we don’t. Transparency is key or don’t open a can of worms that starts a downward marketing spiral and adds to the stock decline of near 30% today. Here is some of the back and forth on today’s noon CBS 2 NYC newscast, originated by Mary Cristoforis’ Business Report which included the fact that BBRY is down near 30% by noon EST:
“I miss my old BlackBerry, but … BlackBerry… who has a BlackBerry anymore–everyone has IPhones”, Alice Gainer. “I wouldn’t say that, many people still have BlackBerry phones”, Chris Wragge. “Yes, they are an IPhone competitor”, Maria Cristoferis”!
That there was no mention of the Z10/Q10/Q5 speaks volumes to the marketing work ahead for BBRY, especially in the USA market. (BlackBerry, this is your cue to send Chris Wragge, and the CBS 2 crew a mix of Z10 and Q10 devices!) I was watching the mid-day CBS 2 News in NYC while reading the posts on CrackBerry, specifically the one with all the irate PlayBook owners which did not need to happen or be the media focus on CrackBerry due to the statements made at the earnings report:
As a stock owner, I am not pleased, with today’s downward spiral, and with the way the call went with what was said that was not of major relevance to the numbers at hand. Sticking to a script might be the way to go in the future! It is enough of an uphill battle to gain market share in the USA and around the world with marketing campaigns, this sort of unfocused reporting leads to a demise of any gains, and provides fodder to the nay sayers! I like Thorsten Heins, and I believe he is doing a lot of good, but he needs to watch what he says, as it carries serious repercussions with the stock. One only need look at what happened to HP while under Leo Apotheker and what appeared to be mixed messaging. Being on point at an earnings call and in line with marketing is critical to minimize negative impact on a stock. The messaging:
The premium OS is OS 10, but we need to put out OS7 devices for emerging markets to help with our global sales numbers around the world, as we ramp up our efforts in the USA.
[Off message and therefore an earnings call is not the place for thoughts on the PlayBook, but since it was brought up my take follows:
As for the PlayBook either don’t mention it or leave developing the OS further/porting BB10 to it an option or explain why it is not an option, at this point. Personally, I don’t buy into not having enough RAM for BB10, as I run OS10.0.10.648 full on on my Dev Alpha A with 1GB of RAM and similar specs to the legacy PlayBook. It is, even if limited as some claim in a very subjective way, a better experience for me than the PlayBook OS 2.x.]