Linked by Howard Fosdick on Thu 29th Aug 2013 03:50 UTC
QNX According to a Computerworld article, BlackBerry is exploring putting itself up for sale, as the company falls into 4th place in the mobile market. IDC statistics that show Android leads the mobile market with nearly 80%, iOS has 13.2%, Windows Phone 3.7%, and BlackBerry 2.9%. Gartner analyst Bill Menezes states that even new ownership is "not going to address how the company restores itself."

One key asset BlackBerry owns is QNX, the real-time based OS it bought in 2010. QNX is microkernel based, versus the monolithic kernel used by many OS's like Linux. BlackBerry bases its tablet and phone OS's on QNX, which also remains a popular commercial OS for embedded systems.
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RE[4]: Comment by Nelson
by Nelson on Fri 30th Aug 2013 06:20 UTC in reply to "RE[3]: Comment by Nelson"
Member since:

That's excluding matched marketing dollars (this is for all WP OEMs) and the intangible cost of not having to build their own ecosystem from scratch.

The capital investment is like a medium term loan from Microsoft, which beats the hell out of raising capital with a bad credit rating.

At the end of the day though the specifics of the deal are behind closed doors, so we can't know for sure. Its certainly more than a one way dump of cash, Microsoft is too smart for that.

Nokia is interesting because its practically been implicitly purchased by Microsoft, they need Nokia to have a chance with WP so they have an interest in then being alive. Its like having a rich uncle.

Reply Parent Score: 4

RE[5]: Comment by Nelson
by tylerdurden on Fri 30th Aug 2013 16:36 in reply to "RE[4]: Comment by Nelson"
tylerdurden Member since:

The details may not have been disclosed, which made some large Nokia investors not very pleased, but the overall structure of the contract is present in Nokia's financial statements.

Nokia ends up having to match dollar per dollar what MS invests initially on WP promotion and what not, and a net sum of half a billion euros on top of that. And that is a baseline, even if Nokia does not sell a single Lumia. Nokia does get an initial capital injection, so that their books don't look shittier during the WP transition. But they have to pay it back at loan shark interest rates, basically.

So the situation is more akin to Nokia having to pay Microsoft to be "owned" by them, as far as the smart phone market is concerned that is.

Reply Parent Score: 2

RE[6]: Comment by Nelson
by Nelson on Fri 30th Aug 2013 18:55 in reply to "RE[5]: Comment by Nelson"
Nelson Member since:

Nokia will end up with net money from Microsoft, according to Form 20-F which they filed with the SEC.

Over the life of the agreement the total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitment payments.

They are expected to pay a net $650 million over the remainder of the agreement, but that's discounting what they've already received in platform support ($250 million a quarter since Q4 2011).

This just means the platform support bits tapers off, and Nokia's royalty payments rise on the backs of their volumes.

That's in addition to the matched marketing we discussed, and the lower R&D and in-house operational expenses that will result from not having to grow their own OS/Ecosystem.

Reply Parent Score: 3