Thursday, December 15, 2011

Blackberry ASP is on the Rise

RIM just reported earnings for the final calendar quarter of 2011. 79% percent of their $5.2 billion in revenue came from the sale of hardware, which includes both Blackberrys and PlayBooks. That means RIM brought in $4.108 billion from hardware sales.

If you multiply the 150,000 Playbooks RIM sold by the same $554 Playbook average selling price I’ve used in previous quarters, then RIM took in $83.1 million from Playbook sales. Subtract that from RIM’s $4.108 billion in overall hardware revenue and RIM brought in $4.025 billion from Blackberry sales. Dividing that by 14.1 million Blackberrys sold will give you an ASP $285.45.

That compares to $302.26 in the first calendar quarter of 2011, $268.56 in the second, and $278.79 in the third. The following chart shows Blackberry ASP since the beginning of 2007.

It’s a sad day when a once-great company trades below book value. I wish all of their employees the best. With a 26.8% drop in profits in one year, they unfortunately won’t be employed much longer.