The Truth Behind BlackBerry's Mixed Messages

A remark by the CEO of BlackBerry (NASDAQ: BBRY  ) during a Reuters interview has erupted into a series of speculative headlines that the company would be exiting its hardware business. CEO John Chen's quote at the center of the confusion was "If I cannot make money on handsets, I will not be in the handset business." Chen later issued an explanation in a blog post, saying that the quote was taken out of context, and that BlackBerry remains committed to handsets, but just needs to make them profitable.

In this segment from Friday's Tech Teardown, Motley Fool tech and telecom bureau chief Evan Niu takes a look behind the headlines at Chen's difficult position between the interests of consumers and the interests of shareholders. Announcing an exit to its hardware business would deal a major blow to any further handset sales, but the hardware portion of BlackBerry's business has been operating at a loss for some time now. Evan discusses some of the strategic steps the company is taking at the moment, and notes that if BlackBerry can't stabilize its hardware business, it will eventually be forced to exit.

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  • Report this Comment On April 13, 2014, at 11:16 PM, Zahhaz56 wrote:

    The headline of your article should read, "The Truth Behind Media Mixed Message Regarding BBRY's Handset Business." You peeps are a bunch of murky creeps.

  • Report this Comment On April 14, 2014, at 8:44 AM, cbglobal wrote:

    Truth is, you guys are Apple fan boys, who would ot know the truth if it dropped on your head (it has already). Apples is becoming so far behind technologically, that an amazing feat would be just catching up.

  • Report this Comment On April 14, 2014, at 8:06 PM, xxBURK wrote:

    So, you both start this video wondering why this was such a big deal. By the end, you're stating Mr. Chen shouldn't be sending mixed messages. The only message here is your inability to stick to your original points. It's as if half way through you realized, oh wait, we forgot to bring BlackBerry down again. I'd bet if BlackBerry sent your company a bunch of Z30's, you'd all change your ignorant tone when it comes to this company.

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