BlackBerry CEO Questions Future of Tablets
By Hugo Miller and Nadja Brandt - Apr 30, 2013
BlackBerry (BBRY) Chief Executive Officer Thorsten Heins said he sees a limited future for tablet computers, an indication he may shelve plans to build a follow- up to the smartphone maker’s ill-fated PlayBook device.
“In five years I don’t think there’ll be a reason to have a tablet anymore,” Heins said in an interview yesterday at the Milken Institute conference in Los Angeles. “Maybe a big screen in your workspace, but not a tablet as such. Tablets themselves are not a good business model.”
While Heins pushes ahead with fresh smartphones built on the new BlackBerry 10 platform to engineer a sales recovery, he’s rethinking whether to offer larger devices. The PlayBook, introduced in 2011, was panned by critics for debuting without built-in e-mail, delivering the tablet a near-fatal blow. Waterloo, Ontario-based BlackBerry took a $485 million charge later that year to write down unsold inventory after shipping as few as 150,000 PlayBooks in the third quarter of 2012.
Heins said in a January interview he’ll only consider a PlayBook successor if it can be profitable. He reiterated yesterday that a BlackBerry tablet has to offer a unique proposition in a crowded market.
“In five years, I see BlackBerry to be the absolute leader in mobile computing -- that’s what we’re aiming for,” Heins said. “I want to gain as much market share as I can, but not by being a copycat.”
http://www.bloomberg.com/news/print/...f-tablets.html
By Hugo Miller and Nadja Brandt - Apr 30, 2013
BlackBerry (BBRY) Chief Executive Officer Thorsten Heins said he sees a limited future for tablet computers, an indication he may shelve plans to build a follow- up to the smartphone maker’s ill-fated PlayBook device.
“In five years I don’t think there’ll be a reason to have a tablet anymore,” Heins said in an interview yesterday at the Milken Institute conference in Los Angeles. “Maybe a big screen in your workspace, but not a tablet as such. Tablets themselves are not a good business model.”
While Heins pushes ahead with fresh smartphones built on the new BlackBerry 10 platform to engineer a sales recovery, he’s rethinking whether to offer larger devices. The PlayBook, introduced in 2011, was panned by critics for debuting without built-in e-mail, delivering the tablet a near-fatal blow. Waterloo, Ontario-based BlackBerry took a $485 million charge later that year to write down unsold inventory after shipping as few as 150,000 PlayBooks in the third quarter of 2012.
Heins said in a January interview he’ll only consider a PlayBook successor if it can be profitable. He reiterated yesterday that a BlackBerry tablet has to offer a unique proposition in a crowded market.
“In five years, I see BlackBerry to be the absolute leader in mobile computing -- that’s what we’re aiming for,” Heins said. “I want to gain as much market share as I can, but not by being a copycat.”
http://www.bloomberg.com/news/print/...f-tablets.html
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