Thursday, March 29, 2012

Blackberry ASP Takes a Nosedive

RIM just reported earnings for its first calendar quarter of 2012. 68 percent of its $4.2 billion in revenue came from the sale of hardware, which includes both Blackberrys and Playbooks. That means RIM brought in $2.85 billion from hardware sales.

Assuming that each Playbook sells for, on average, $250, then RIM took in $2.73 billion from Blackberry sales. Divide that number by the 11.1 million Blackberrys RIM sold and you get an average selling price of $246.04. That compares to $285.45 in the previous quarter, and $278.79 in the quarter before that one. 

Though the average selling price of a Blackberry has been very volatile over the last year, an almost $40 drop in ASP in one quarter is unprecedented. My data goes back to 2007, and I couldn’t find anything like it. ASP dropped by more than 13 percent in 90 days.

The chart below illustrates just how bad it’s gotten:

How much longer will RIM survive?