Global business news twenty four hours a day. If Bloomberg dot com, the Radio plus mobile app and on your radio. This is a Bloomberg Business flag from Bloomberg World Headquarters. I'm Charlie Pellant, the Donald, the SMP Nestack all advancing oil. The big story. Today's crude oil surging four percent right now talking about West Texas Intermediate. Let's said right over to the first word Breaking news desk for today's afternoon call. A lot going on all about oil. And here's Bill Maloney.
Good afternoon, Charlie. MANUUS averages jumped into day on news of that OPAQ production cut. Dow is currently hired by eighty two point, sesamees Game eight and AzaC is hired by six. The small cap six D is up four points send the US ten yield at one point five seven percent. Seven out of eleven sub sectors are higher, led by gains and energy, Materials, and the industrials Telecom, utilities,
healthcare and consumer staples fell down. Transports are up fifteen, utilities are down three as a biotext fall, and the Vicks drops three point seven percent. Leaders to the upside in the down include Exon Mobile Caterpillar and Chevron, while Nike,
McDonald's and Coca Cola led to the downside. Another news like California State Treasurer sanctioned Wells Fargo for twelve months and Tempera Cilly plunged after cutting your sales forecast, while Murphy Oil serves as much as eleven percent amid gains and energy live from the first breaking news to ask im Bill Maloney, l all right, thank you very much, Bill Maloney, and again Crude Oil West Texas in the media four percent to hear live breaking news over your
Bloomberg type squawk on your terminal squ a w K. I'm Charlie Paullattat's a Bloomberg business flash. You're listening to taking stock with Bim Box and Kathleen Hayes on Bloomberg Radio. BlackBerry, maybe we should play a dirt for BlackBerry. Of course, BlackBerry was synonymous at one time with mobile communications, famous for their cell phones that have the physical peopoards. Well, you have a nickname for it, good, that's good. Many
named Many named them crackberries. Right now. Today it announced that they have decided to stop making their own devices other companies, perhaps through licenses and some one will still make some of those products with their BlackBerry name is still imprinted. But imagine taking such a consumer brand like that, and what's well, you know, here to tell us how
this all happened is John Butler. He is our senior telecoms analyst for Bloomberg Intelligence, and he knows that I stopped him almost every day to bother him about BlackBerry. So go ahead, tell us all about BlackBerry. Another one bites the dust. And it's a it's a tough market. It's it's really in many ways a ruthless market. If you begin to lose that momentum in the consumer marketplace,
it really can spell disaster. Look at Nokia, look at it to rolla now BlackBerry, but CEO John Chen I think is making the right move to restore the company to profitability. If you look under the hood here, you know, devices were over thirty one of revenue and only twelve percent of gross margin. Software is forty one percent of revenue in the latest quarter and fifty seven percent of profits. So that's just like that, that's where the I mean the stock is today right the stock right now is
up more than five and a quarter percent, where eight dollars. Yeah, So it's it's all about that transition to software and security for them. So then give us a sense like if it's a pie okay Blackbreys of pie the business and one big piece of the pie has just gone away. It's it's like in Indonesia, now license to make that they put their name on that kind of device. What's left and how much is it worth? How big is
this company now or this pie apple? Well, the river the revenue Pie is smaller by thirty percent, but the profit pie is smaller by only about twelve percent. And that's really the key here at Kathleen is they're shrinking to grow, if you want to think of it that way. That's the strategy, shrink to grow and transition over to that security and software business enhance. That's they're still going to license the name. Uh, they're going to monitor quality
control and specs obviously because their name is going there. Um. But they're really out of the business of designing and manufacturing in house. They got a lot of competition in the new areas that they want to grow in and nobody is standing still. No one is staying still. So what are they doing? What are they doing that's working for them, and where do they need to get, you know, a little bit more action. BlackBerry always hangs their hat
on security. They really have done quite well there and they have a lot of patents in that portfolio continues to rows. So in software, the model is to to move to a recurring revenue model as opposed to what's called perpetual license that one time pay. So they're looking for that annualized revenue stream and they're selling proposition is we have the best security in the business, particularly at the device level. So I think they're gonna do. That's
why they hung on in the device business. They hung on to the software and security piece and they're just moving the design and the manufacturing of the hardware outside of that. How do they make money at that point? Like if you're just licensing and that all comes like either you running the Snapdragon ship from fall Calm or that that all built into that prices that it is.
In fact, what's interesting, what's good about the deal for BlackBerry is no matter who's selling the device or at what price, BlackBerry makes a pre negotiated or a set price on that royalty on a per device base. Okay, is there any cautionary tale in what happened to BlackBerry totally the leader at one time, Apple comes up boom,
and you know, Samsung and Android. For any other you know, mobile makers out there, I think the key is, more than almost any other tech market, you really have to keep your finger on the pulse of what people want and where the technology is headed. So with BlackBerry, I think they lost sight of the importance of apps as they were beginning to gain traction. After the iPhone was introduced. That really was the beginning of the end for them. To them, they looked at it and said, we're all
about security and we're all about push email. That's the only app that people really need or are really gonna want. And they were wrong on that, and they weren't paying attention to that growing momentum behind the iPhone and why that momentum was growing. It was all about apps. So neither Samsung or Apple is going to make that mistake. I hope not. We'll see you know again, I mentioned those names at the beginning of the segment. Think of it. Nokia used to be a giant in the field, so
is Motorola. They're both gone now. So how about Jamni is an up and comer. They've lost a little bit of momentum lately. They're trying to find that next what they call hero device, the one that really resonates. Well, so we'll see jump, but they're always a hero. When you join us on taking Stock, he senior Telecom Services and Equipment analyst for Bloomberg Intelligence. I'm Kathleen Hayes. Along with pim Fox. We're broadcasting live today from the Bloomberg
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