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Blackberry Passport in Sales Slump

News by Luke Jones on Monday March 16, 2015.

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The Blackberry Passport was launched last year and was actually warmly met, with critics praising the device and consumers buying it. The problem Blackberry had was that only fans of the company's products wanted the handset, it was not attracting many newcomers to the brand. There was a danger that the solid early sales would dry up, and it seems that is the case, while it is a similar story with the Blackberry Classic.

Brokerage firm and analysts Morgan Stanley noted to clients on Monday that the Blackberry smartphones are struggling to sell in any big numbers. In fact, the company says that the Passport and the Classic are "not tracking anywhere close" to what was expected. That's a problem for Blackberry as the handsets were meant to be a new start for the company, at least from a hardware perspective.

The numbers being touted by Morgan Stanley are very troubling, with the company saying only 8000 units of the handsets have sold so far this quarter. Blackberry is currently entering its fiscal 2016 and the company apparently needs or expects to sell 2 to 3 million units through the next twelve months. Software has oft been described as a safe bet for revenue, but Morgan Stanley says that the targeted $500 million in revenue from software is unlikely to be met.

On top of that, Morgan Stanley is even doubting Blackberry's enterprise credentials, an area where the company has always excelled. The firm claims that the Blackberry name does not carry the same weight in enterprise circles.

It is hard to know at this point if Morgan Stanley's claims hold truth or whether this is more scaremongering, something we have seen a lot regarding Blackberry. I guess that will only be known in time, but at the moment it at least paints a worrying picture for the Canadian company. What do you think about this, is Morgan Stanley being too negative, or do you agree with the assessment?

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About the author

Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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