Is BlackBerry the Biggest Loser in Super Bowl XLVII?

This year's Super Bowl featured an ad by smartphone maker BlackBerry  (NASDAQ: BBRY  )  that cost between $3.8 million and $4 million, according to the latest prices from broadcaster CBS. Despite the seemingly astronomical price tag, many industry experts consider the fee a bargain when compared to the benefit garnered by the companies that get their message out to 100 million viewers. But when the primary viewing audience cannot rush to their local retailer and actually purchase the product being extolled in the spot, you must consider if it really is money well spent.

The delay has been blamed on U.S. wireless carriers, including Verizon  (NYSE: VZ  )  and AT&T, each of which have extensive testing processes that can take months to complete. While there is no set time for a device to clear testing, BlackBerry did not get the new Z10 to U.S. carriers sooner than others, which could have made the launch of the smartphone in its largest market timed more in line with other launches. Given this apparent misstep, whether you are an AFC or NFC fan, BlackBerry looks like Sunday's loser.

Super Bowl economics
Where ads once existed in their brief airing during the big game, they are now the subject of social media discussion and widespread rankings. The hype that a single ad can create goes beyond the initial set of eyeballs that sees it. Even on that metric, by price, there is significant value. Senior editor Derek Thompson of the Atlantic wrote: "On a per-person, per-30-second basis, those numbers suggest that a Super Bowl viewer is worth twice as much as somebody watching The X-Factor or 30 Rock (which can be DVR'd, so the ads can be skipped) -- or 33 percent more valuable than somebody watching a Sunday Night Football game." Even with the perceived value, $4 million is a hefty price for a 30-second spot pushing a product that is not yet available for sale.

Testing, testing... is this thing on?
Once a device is approved by the manufacturer, it is sent to the various carriers for testing on their respective networks. Tests cover checks of battery life, signal strength, call quality, data performance, and heat tolerance. Verizon's Torod Neptune explained: "There's really no typical length of time for a phone to go through testing. We have a rigorous and extensive testing protocol, and how long that process takes depends on the device and the issues we may encounter." He further explained that the process can be protracted in cases when the manufacturer is introducing a new operating system.

When BlackBerry announced the delay in conjunction with the rollout of the new device, the market reacted with predictable annoyance, taking the stock down 17% since the news broke. BlackBerry is in make-or-break territory and is counting on the new Z10 to bring it back to relevance in the smartphone arena. CEO Thorsten Heins, while blaming the carriers for the delay, also acknowledged the basis for the situation: "Verizon, AT&T, Sprint, T-Mobile -- they have to comply with certain rules they are subject to. They're trying to speed it up."

Perhaps more important than the delay itself is what it represents. BlackBerry has been delaying this device for some time, meaning that expectations have been high. The device was supposed to be released as much as a year ago, but the company took the time it needed to make sure the product it took to market would be solid. If the company is unable to manage something as straightforward as the launch of its flagship product, however, how can it be trusted to operate successfully in the future? The Z10 will go on sale in both the U.K. and Canada in early February, but the U.S. launch has been delayed until March.

The 100 million Super Bowl viewers who may be impressed by the new Z10 will be forced to wait a full month before the smartphone hits shelves. Even for those who are willing to consider leaving the comfort of their iOS or Android phone, a month is a long time to wait to even consider a new alternative. If BlackBerry does not rack up considerable sales, its days may be numbered.

A few positives
In the maelstrom of head-shaking that has resulted from yet another misstep from the once market-leader in smartphones, there are a few bright spots. The company clearly understands that it not only must produce a great device, but it must convince consumers to consider it before buying something else. In a recent review, David Pogue of The New York Times said the device was complete, meaning that BlackBerry had covered all the bases to put out a product without any major holes in its functionality.

BlackBerry seems to be its own worst enemy with the way it is managing even the basics. If this is the last misstep, there may be hope, but based on this latest gaffe, I would steer clear of the stock until the Z10 is on shelves and selling well.

A better bet for 2013
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (8) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 04, 2013, at 5:38 PM, TimKnows wrote:

    I think you Fools are the biggest losers after the SuperBowl, BlackBerry is up 15% today.

  • Report this Comment On February 04, 2013, at 5:42 PM, mirra88888 wrote:

    Incase you forgot, They are on the shelves and 40% of people who are buying them are defecting from Android and Iphone.

  • Report this Comment On February 04, 2013, at 5:59 PM, CZZZZZZ wrote: is the biggest loser beating this dead horse, c'mon Fool, you missed the last 150% gain while backing Apple's 33% loss.

    For the record, shows the Blackberry ad was one of the most popular ads.

    Thanks for the laugh Fools, I love checking in here for my daily feeble blackberry bashing article..+15% today too..ouch.

  • Report this Comment On February 04, 2013, at 7:11 PM, digibird wrote:

    Good day,

    I have never seen a site that is so blatantly biased towards Apple(incidentally who's products I also love) and so negative about Blackberry. There is plenty of room for choice guys and stop trying to stifle innovation by your comments. Or are you just shorting the stock and therefore the only way to ensure your position is to constantly bash this company.

    Very unethical behaviour in my humble opinion.


  • Report this Comment On February 04, 2013, at 9:57 PM, gatman1 wrote:

    Please keep up the bashing...we don't want everyone to buy Blackberry stock do we...Oh, BTW, Apple is looking a little pale today. Hope you didn't bet all your money on that nag.

  • Report this Comment On February 04, 2013, at 10:13 PM, Racerbold wrote:

    Up 15% today.. and rising ! Lines in front of stores in UK... what kind of phone are you using?? hope you have a lots of APPL shares....

  • Report this Comment On February 05, 2013, at 7:15 PM, kel4003 wrote:

    I started investing a year ago and trusted MF to be objective educators promoting the most promising growth stocks. I bought highly recomended dogs like PSMT, SPLS,AMRC,JCI, WPRT,and MAKO. Buy and hold turned into buy and watch my money disappear. I skipped AAPL I couldn't fathom paying that much for any stock and glad I passed it up. Fool articles slammed NFLX for most of the year with dozens of articles dragging up every temporary setback in the history of the company and citing them constantly while trying to convince everybody that Amazons almost insignificant streaming service was sure to become the next big player.Why? because they offered free two day shipping! Who the F cares about that if you just want to watch a movie! But, Since they own Amazon i guess they felt that was in their best interests to promote. The tone quickly changed when NFLX started to get back up towards $100 and they started selling their premium report. Now they have taken their bias to new highs with BBRY and quite frankly, their hidden agenda has become so transparent that it makes me throw up in my mouth a little. If they cared about helping new investors they would have to objectively see BBRY as the highly viable growth play that it is and stop trying to convince people they should blindly hang on to stocks that might reverse their downtrend. The sentiment expressed in these replies should be telling you something, MF

  • Report this Comment On February 05, 2013, at 8:11 PM, digitally404 wrote:

    I personally would own BBRY for one reason alone:

    The BB10.

    I've been using the product for awhile now, and it's hands down better than anything else I've used.. Including the iPhone5/SG3.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2233842, ~/Articles/ArticleHandler.aspx, 9/27/2016 3:08:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
BBRY $7.82 Down -0.09 -1.14%
BlackBerry CAPS Rating: *
S $6.65 Up +0.01 +0.15%
Sprint CAPS Rating: **
T $41.14 Down -0.14 -0.34%
AT and T CAPS Rating: ****
VZ $52.15 Down -0.41 -0.78%
Verizon Communicat… CAPS Rating: ****