Blackberry 2014 Annual Report Download - page 22

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14
applications, among others. The Company also intends to continue to acquire rights in intellectual property in various
forms and technologies when appropriate opportunities arise.
• Achieving best in class operational metrics. BlackBerry intends to further simplify business processes and target areas of
the business where greater efficiencies can be achieved. The Company is focused on driving best in class operational
metrics through the implementation of broad efficiency programs across all functions in the organization. Through the
Company’s CORE program, the Company is targeting areas such as product lifecycle management, supply chain
management and business support services to achieve best in class operational metrics. In addition, the Company intends
to continue transforming the organizational culture to reduce complexities and increase accountabilities while aligning
employees behind the BlackBerry vision, mission and values.
• Continuing to invest in highly qualified personnel. BlackBerry believes that the quality and skills of its employees have
been key factors in its success to date. The Company intends to continue its recruiting strategies and operations worldwide
to support its product development and growth strategies and ensure the needed strategic capabilities are in place.
BlackBerry intends to retain, attract and develop employees to drive organizational performance and foster an environment
of innovation, learning and development for the Company’s talented workforce while ensuring a cost effective
organization.
Products and Services
The Company’s primary revenue stream is generated by the BlackBerry wireless solution, comprised of smartphones, service
and software. BlackBerry service is provided through a combination of the Company’s NOC and the wireless networks of the
Company’s carrier partners.
The Company also generated revenue from the embedded market through licensing QNX software products and providing
professional services to support customers in developing their products.
The Company also generated other revenue from accessories, non-warranty repairs, BlackBerry World and gains and losses on
revenue hedge contracts.
The Company’s revenue mix from continuing operations for fiscal years 2014 and 2013 is as follows:
Revenue (U.S. millions) March 1, 2014 March 2, 2013
Hardware $ 3,785 55.5% $ 6,648 60.0%
Service 2,698 39.6% 3,910 35.3%
Software 235 3.5% 261 2.4%
Other 95 1.4% 254 2.3%
$ 6,813 100.0% $ 11,073 100.0%
BlackBerry Smartphones
The Company’s most current smartphones include BlackBerry 10 smartphones, powered by the BlackBerry 10 OS, and
BlackBerry 7 smartphones, powered by the BlackBerry 7 OS.
BlackBerry smartphones are available from hundreds of carriers and indirect channels, through a range of distribution partners,
and are designed to operate on a variety of carrier networks, including HSPA/HSPA+/UMTS, GSM/GPRS/EDGE, CDMA/Ev-
DO, and iDEN. In certain markets, BlackBerry 10 smartphones are also available directly from the Company at
ShopBlackBerry.com.
BlackBerry 10 Smartphones
In fiscal 2013, the Company introduced the re-designed, re-engineered, and re-invented BlackBerry platform that created a new
and unique mobile computing experience. Two new LTE-enabled smartphones powered by the new BlackBerry 10 OS, the
BlackBerry Z10 (all-touch) and BlackBerry Q10 (touch with physical keyboard), were introduced on January 30, 2013.
In fiscal 2014, the Company also introduced the BlackBerry Q5 (featuring a physical QWERTY keyboard and touchscreen), the
BlackBerry Z30 (featuring a 5” display and BlackBerry 10.2 OS) and the elite, all-touch Porsche Design P’9982, and
announced the BlackBerry Z3 as the first smartphone to be developed under the Company’s strategic partnership with Foxconn.
In February 2014, the Company also announced the BlackBerry Classic, an upcoming QWERTY smartphone that merges the
power of BlackBerry 10 with the classic BlackBerry design and experience, realized with hard buttons as well as an integrated
trackpad.
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