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BlackBerry launches $2,380 ultra-secure tablet

Mar. 14, 2015 9:21 PM ETBlackBerry Limited (BB), BB:CASSNNFBy: Eric Jhonsa, SA News Editor361 Comments
  • BlackBerry's (BBRY) SecuTablet, launched in partnership with Samsung (OTC:SSNLF) and IBM, is based on Samsung's Galaxy Tab S 10.5 Android tablet, and contains encryption and anti-eavesdropping tech developed by the company's German Secusmart unit (acquired last year). BlackBerry says the device could be available by this summer, and will sell for about $2,380.
  • The tablet is aimed at enterprise and government clients with high-end security needs, and relies on app wrapping technology provided by IBM to silo consumer apps such as Facebook, Twitter, and YouTube from secure apps. IBM will also assist in implementing Secusmart's solutions "within the infrastructures of the various clients inside the governmental sector."
  • The launch comes a year after BlackBerry discontinued the (QNX OS-based) PlayBook following less-than-stellar sales, and four months after the company formed an alliance with Samsung to create security solutions for Samsung's Android hardware. Google gave its blessing to BES12 (along with other enterprise mobility management platforms) last month.

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Comments (359)

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tfwg profile picture
Other than AT&T, how can serious subscribers acquire the new Blackberry handsets? Please don't say amazon or ebay!

What does John Chen know, that EVERYONE else doesn't?
snu-snu profile picture
Shop blackberry for example.
Why Amazon is not an option? What's wrong with it?

you have more than hundred different, world wide carriers as well.
Teutonic Knight profile picture
I don't want to add salt to wound. I suppose many of your in the audience have underwater shares of BBRY, ever since BBRY was genocide by AAPL, plunging from ~$300 a share to its ~$9 now.

The reality is, albeit Chen's magic move, and the stance of the Secure Table outlook is good, it won't be announced until the summer. Which means it won't be sold to governments till the 3rd quarter, for revenues to coming in. But meanwhile, the company needs cash to keep itself alive.

And so the forward scenario is still quite uncertain to say the least.
snu-snu profile picture
What are you talking about? they got more than 3 BN cash.

their cash burn dropped from about 1BN in 2013 (if my memory is not mistaken) to approximately 20M/quarter.

last quarter was profitable
Eric Dee profile picture

"last quarter was profitable"

Only on a non GAAP reading. Think you need an asterisk there

"What are you talking about?"

Reality, which apparently you continue to question.
snu-snu profile picture
Eric, have you read the Actual report?

What is non-Gaap profit, and why it was gaap loss?
Azazello profile picture
Well, the SecuSmart Tablet news so far is not impressing anyone other than SA BBRY long posters. The share price is down to a $9.65 pre-market low.
Azazello profile picture
My profile does not allow the change of my username. My username is NOT my email address. My sign in info is my email address and my password. Both can be changed. No other issue.
Azazello profile picture
SA does not allow username changes. Policy. But you can set up a new one.
Teutonic Knight profile picture
Well, I had a new email address. The old one was shutdown. So I updated my profile by logging in with the old email address, and changed my email address to the new. SA uses your email address as username.

Am I on the wrong track? SA does allow changing username. I wonder what your issue is.
Yes i tried to change it but it won't let me! If you know how let me know.
Teutonic Knight profile picture
I see no big threat for Apple.

Apple with its hundreds of billions of cash, they could easily sniff out yet another super duper stellar security cryptography company/suite and just offer them a price they could not refuse, taking it over.

Money talks, money talks louder and louder and if enough money is offered, nothing is not for sale. Then, putting that super cyber software into the Apple devices is a piece of cake.

I am sure they Apple are now working on this with due diligence.
Cliff Hilton profile picture
@Teutonic Knight,

I am absolutely positive Apple heard the security cry billions of dollars ago. Remember, they buy the cream of the crop when it comes to engineers. They got nothing! Money buys love not a new secure way to protect data. Leave Apple to the consumer, they make toys.

Just call BlackBerry, they already have the future secure. At least for the next 147 billion years.
Kid Glove profile picture
@Teutonic Knight - From the ground up BBRY was built with security in mind. Every aspect of BBRY code is integrated into that solid secure foundation. AAPL focused on software/hardware integration to enhance functionality, not security. For APPL, security was just a necessary evil so they only did the required minimum. AAPL would need to start from scratch with their software/hardware architecture to have any chance of matching BBRY security. Buying a third party security company and integrating it into existing AAPL architecture would only be a patch job. It would be cloogy; a maintenance and development nightmare. Even if it were implemented as just a security layer. Essentially, AAPL's demise is already in their code. Just as your demise is already in your DNA. Even billionaires die. The dawning of the security age is upon us. It will not be denied.
Andreas Hopf profile picture
"Leave Apple to the consumer, they make toys."

Managers of many businesses worldwide happily use Apple's toys since years, which is why IBM, SAP, etc. support iOS developer communities. I wonder how that can be... are most businesspeople stupid in your view?
rukdng profile picture
With a wide range of award-winning software and hardware solutions, Certicom, a wholly owned subsidiary of BlackBerry Limited (Nasdaq: BBRY; TSX: BB), protects billions of dollars worth of content and millions of devices around the world. With over 350 patents and patents pending worldwide covering key aspects of Elliptic Curve Cryptography (ECC), Certicom provides the core technology for the National Security Agency (NSA) Suite B standard for secure government communications.

In case you have never heard of ECC, Blackberry was able to establish FIPS 140 certification with NTSA for its devices based on the use of Elliptic Curve Cryptography.
Andreas Hopf profile picture
The only elliptic curve of interest is BlackBerry's ever collapsing revenue.
rukdng profile picture
In your effort to appear witty you have just demonstrated your ignorance of the realities of today's internet
Vlad Hristov profile picture
In the 90s when the biggest economic espionage was in the full swing, security was never brought to any of the mortals (you and the majority of the consumer market). Today's as you appear to be far back from that time, it is essential for the big corporations (not only governments as it was back then) to have that. Creating standards in the Information security is called innovation, because you have to stay ahead of those who might be smarter then you and are trying to break in. Also, you need to constantly update those standards, and most of the time create new.
Most of the people involved in those areas are scientists, because this is science, so avoid reading the shallow minded leeches/media and do some program reading, and algorithm creations.
FYI we are currently witnessing, the SHA1 and TLS 1.0 (SSL) are obsolete and vulnerable, which was not the case 5 years ago, when they were the standard.
@AH sounds like a great idea, and to sweaten the deal maybe they can throw in a dozen free ipad2 mini's to be used as coasters
Azazello profile picture
@bendy (too bad you cannot change your username so it is grammatical: as in iPhone. See the Chicago Manual of the use of internal capitals)

AAPL never discounts anything. No firesales of Zwhateverthenumberwas kind of stuff.

kudos for the effort. My wife would have said: your best college try!
Roll Tide, Roll profile picture
I'm not one to rub dirt in someone's *investment thesis*. We all like to think we pick diamonds 100% of he time but, we've all got a few lumps of coal in our portfolios. The vast majority of bullish comments in this thread are not investment thesis. They are emotional, irrational and conspiratorial. They speak of Apple as though the company is a person and has personally slighted them. They, literally, can't see the investment reality of a company like Apple versus BlackBerry. They appear to faun over some magical day in the future where BlackBerry will vanquish all other tech companies - particularly Apple - and we will all rue the day we ever doubted JC AT THE HELM's obvious wisdom and our foolish, stupid short sighted focus on companies that make money. That thinking is delusional. On the other hand, Blackberry will continue to exist, or be sold off in chunks (or the whole). Instead of focusing and dreaming of what's not gonna happen, why don't those who feel amorous to the company develop a sound strategy for the "new" BlackBerry. Think BlackBerry will be sold? That's a sane possibility; develop a quick thesis on the PPS for a sale and make an arbitrage play. Think BlackBerry will be a going concern for a long, long time? That's a sane possibility; develop a carefully thought out, rational thesis on what that business will look like. BTW, this is exactly what Chen is doing. He's selling/closing/elimin... those aspects of their business that are essentially lost for the foreseeable future. BlackBerry can absolutely survive and remain a profitable, even growing robustly company. It can also be a profitable investment vehicle at the right entry price and realistic understanding of possibilities. The idea that BlackBerry is going to rekindle what was lost and show the world a thing or two is fallacious and deluded. Hardly a basis to make a ***investment*** decision on. There can be a profitable company in the rubble of what was BlackBerry.
Food for Thought profile picture
re: The idea that BlackBerry is going to rekindle what was lost

Can't say I've heard any bulls make such a statement or anything even remotely close to it. You appear to be hearing what you want to hear, which is delusional.

Chen has clearly stated 10million handsets a year is fine by him.

The only other major part of its old business model that is part of the 4 new pillars is BES, and that never fizzled, they are still 500lb gorilla's and gaining weight.

You're thinking in the past, Blackberry re-invented itself 2 years ago.
Andreas Hopf profile picture
"Can't say I've heard any bulls make such a statement or anything even remotely close to it."

Then you need to read fellow kamikaze investors' posts more carefully. BlackBerry article comment sections are awash with such nonsensical delusions. This article's comment section, too.

"...4 new pillars..."

What would these four new pillars be? They are not mentioned in BlackBerry's corporate literature or on the company website.

"...Blackberry re-invented itself 2 years ago."

Looking at their quarterly financial statements and the last annual report, this appears not to be the case: Hardware. Service. Software. Other. It is all there, as before.

The only thing John Chen "managed" so far was to shrink the business faster than his predecessor, Thorsten Heins.
Azazello profile picture
If you have read Michael "Perma AAPL Bear - Perma BBRY Bull" Blair's recent _piece_ (I will refrain from tastless puns) on BBRY, you may have noticed (not likely!) that his BULLISH handset sale prediction was for 1.2 M units in the quarter. Now comes the math...

Never mind. The news is bad.
KIA Investment Research profile picture
Interesting development;

Something from press piqued my interest:

Dr. Hans-Christoph Quelle, CEO of Secusmart GmbH: "Subject to certification of the SecuTABLET, German government agencies will have a new way to access BlackBerry's most secure and complete communications network in the world."

Are we talking about BIS here? Is this guy just confused?
Roll Tide, Roll profile picture
DeZeee, one critically important thing: you forget that 'JC is at the helm'. With JC At The Helm, it's only a matter of time before anyone who cares about security will own and use multiple BlackBerry devices. Umm hmm. It says so just above.

BobMorgan profile picture
Roll Tide, Roll, the problem with your thesis is that Blackberry is not
by along shot the only company that provides advanced security for
enterprise. That is a myth we only read about on sites such as Crack-
berry or posted ad nauseam by hopeful BBRY longs. Any entity who
is interested in better security has many choices which is why instead
of Blackberry gaining customers they have been steadily losing them.
Azazello profile picture
@Roll Tide, Roll
"...use multiple BlackBerry devices"
I wonder where DaZeee is!
Still, multiple devices? Shouldn't ONE be enough? It reminds me of the old RadioShack Sunday blow-in insert days: a copier, a fax machine, an answering machine, a pager, a camera, a phone, a battery charger, a cassette deck...

Shouldn't BBRY figure out how to copy iOS and Android to have them all in one device?
Andreas Hopf profile picture
If BlackBerry and SecuSmart were the only businesses offering secure solutions, their devices and services would sell, year after year, in vast quantities.

Well, they don't.
Andreas Hopf profile picture
An expensive ice scraper. Should have been released this winter. The summer release points to its secondary use as illuminated beer-mat.
BobMorgan profile picture
AH, it will be winter for half the globe when the "expensive ice scraper"
is released.
Eric Dee profile picture

"An expensive ice scraper. Should have been released this winter."

It's 98 degrees Fahrenheit out here in the Wild West. It's about as useless as one could imagine at this point.
Dezeee profile picture
Now, here is the one to really kick BBRY with—while it's down.
Last year's AAPL developers conference was all about groundbreaking programming. After the announced IBM - Apple partnership last Fall, this coming WWDC may be focusing on security and enterprise deployment (to shore things up about HealthKit, too).

But that's in June. I wonder if BBRY will be still around to watch the show... or will it be sitting under the willows of the nursing home, staring blankly with watery eyes at the swans on the lake while the nurse changes the colostomy bag.
Dezeee profile picture
@Food to remain with your username theme
Goldman Sachs does not have egg on his face. Goldman Sachs is sitting in the clubhouse, looking at the melting snow on the golf-course and having a Bloody Mary with Eggs Benedict. The eggs are safely placed on half-cut English muffins and guess what? Smoked Canadian ham...

But, it's true BBRS's bacon was smoked by the justified downgrade.
mapodga profile picture
I also wouldn't care for gold socks.

Even if they are wrong they always come out with profit.

But with BBRY they are not wrong. Revenue is really falling and BES12 didn't conquer the market.

But this was expected.

Now is the question how will market access this expected "non-success". I wouldn't be sure that market will say that this was fiasco.
Surely they too are doing God's work. But why are they working on Sunday ?
Azazello profile picture
They are networking—it's real hard work. No lifting of the golf-clubs required.
BobMorgan profile picture
The question is will they sell more than 100 of these tablets.
I mean my post is as realistic as most I am reading here.
The back patting and kudo's as if this tablet is going to save
the company has reached a point of absurdity that really
can't even be described. The desperation of underwater longs
is reaching a pinnacle. Obviously misery loves company.
I also can't even comprehend why all the posts by BBRY longs
comparing this to the iPad. This just makes the desperation
palpable as this tablet is aimed at a completely different market.
It's time to let go of having missed out on one of the greatest
investments in history (AAPL) and start being realistic about
your losing investment in BBRY. Ever hear of "cutting losses"?
xoleo profile picture
iPads are banned by a range of european governments and parliaments for work meanwhile. Since this is really very uncomfortable for the users, I suggest even such a high prized device will be accepted, in special, as it is the money of the european tax payers.
Dezeee profile picture
AND you think it was because of security concerns? Not because of the distraction factor of Tetris and Sudoku and Angry Birds to anaesthesize the brain-curdling boredom of parliamentary sessions. You may be right. Let's give them Blackberries and my business card to make appointments for psychiatric consultations to deal with their anxiety stemming from suppressed resentment.
xoleo profile picture
@ Dezee

Go google, malware, tracker etc...,you don´t find arguments anymore, or have you ever had some?
Food for Thought profile picture
Well this certainly was a weekend treat, can't wait to see the stock price action next week. Goldman Sachs have egg on their face.
FfT... Using very round figures, call options on about 10 mil shs expire this week, say 2% of float mol, while total short is closer to 90 million.
Major shorts traditionally have 2 choices if they want to change course, one of which is to continue shorting , keeping the price down , then scooping up expiring options for pennies , exercise of which does not cause buying pressure.
The other choice is to cover, but the big folks have learned it is much easier (less painful) to keep shorting unless they see a paradighm shift in demand. That is because outright covering in a rising price environment is triple pain. So we expect to see the shorting campaign continue , but with the option premiums increasing gradually in coming weeks and months even while the nasty stuff from WS continues.

What can throw the major shorts for a serious loop is when a piece of news is somehow an inflection point for major longs to enter or add. Interestingly, buying short expiries for pennies works as well for them, not forcing the sp up although tending to pressure option premiums. The next few weeks will be interesting at least, with our bias toward long in the money calls. We'll look at some expiring options for pennies tomorrow. We do not believe the shorts can prevent the price ultimately rising (that will be determined always by longs) , just a matter of when.
Mostly you need to assess how long institutions react as opposed to traders. To us, the fundamentals forward should look daunting to any retail short (one who is investing his/her own money).
mapodga profile picture

Can you explain this in English. :-).

I'm currently short and I'm option trader and I don't have a clue what you said.
And you talking about us.
You are going on intuition and 'feel' and that's OK, you invest like Warren and Bill. The one difference is that Warren does not seem to expound about short positions, so we suspect he has none. Bill on the other hand may have to justify some trading in public. Best of luck trading against the big folks !
Although we sense the numbers are dropping under OB, this article begs the question "just how long and wide is the playing field of government?" Just like consumers, the vast majority of government agencies have economic constraints that prevent them from buying the latest and greatest whatever, but we need to agree when it comes to spending, governments will always go for it when the consumer's constraints are absolute.

This is an old study, but not much has changed. The worldwide market to governments is massive. And without exception, we see it is governments that will lead the spenders when it comes to protective technologies.
Eyeball the charts briefly to simply put the issue in perspective. We will post more up to date data as we dig it out.
mapodga profile picture
Where will we go now?
To 12$ or 8$?

Any idea?
Teutonic Knight profile picture
Sell on the news, of course, for most investors who still own BBRY but, I hate to say this, still underwater.

Get the Hell out NOW!

Massive Liquidation is the ONLY way to go given this LAST Chance!
mapodga profile picture
What to say?

We have been at 9 few times, before that they were at 6 few times and currently we are at 9.8 for a while.

My prognoses here were in last period most accurate here as you remember and this time I don't have idea.

But I smell that we won't stay here, but go somewhere in longer jump.
Couple of questions:

If an alliance with IBM and Samsung is possible, why not with Apple? What prevents them other than ego?

How the new touted tablet operates? Doe it use BES12? BB10 Secure Suite?
See my comment above - it's nothing to do with a BBRY-Samsung-IBM alliance - it's the fact that BBRY bought a company with a pre-existing financial arrange.

"How the new touted tablet operates? Doe it use BES12? BB10 Secure Suite?"

There is no BBRY software at all on this modified android based samsung galaxy tablet.
@alan... To put the implications in perspective, we need to see the 10,000 foot view from IBM's perspective. IBM is essentially a 'brain trust' relied upon by big government worldwide to provide IT leadership. It cannot take anyone a direction that does not exist, in this case high end data security in a widely distributed infrastructure. This technology/alliance is an enabler to much bigger fish for IBM. If you do not understand BBRY, consider it is at least bullish for IBM.
Cliff Hilton profile picture

BlackBerry should work with everyone, including Apple. Everyone needs and deserves security. No one should hinder that. I remember Marcap suggested that only important people needed security. Like there are are unimportant people in the world. Marcap said he is willing to give up his privacy to the NSA. Not me.

If all phones were not secure, what keeps any able country from lighting up all phone cameras all at the same time to see just where the important people are? With facial recognition, it would not take long for someone to be found. The unimportant people would be used against the important people.

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