Blackberry ASP Falls Almost 20 Percent

Earlier today, RIM reported earnings for its second calendar quarter of 2012. Revenue was down 33 percent compared to the previous quarter, to $2.8 billion, and 59 percent of the company’s revenue came from the sale of hardware. That means RIM brought in a total of $1.652 billion from the sale of its Blackberry phones and PlayBook tablets.

Assuming the same $250 PlayBook average selling price as last quarter, then RIM brought in $65 million from PlayBook sales. Deduct that from total hardware revenue and you get $1.587 billion from Blackberry sales.

Divide that revenue by 7.8 million Blackberrys sold and the average selling price of a Blackberry was $203.46 this quarter. That compares to $246.04 last quarter and $285.45 in the quarter before that. In one 90 day period the average selling price of a Blackberry dropped by more than 17 percent; in 180 days it dropped by more than 28 percent. The following chart illustrates the change in Blackberry ASP since the beginning of 2011:

It’s also important to note that hardware sales as a percentage of overall revenue fell dramatically. Last quarter it was 68 percent; this quarter it was 59 percent. This shows that people just aren’t buying Blackberrys anymore. Since 2007, RIM has sold more Blackberrys in calendar Q2 than in calendar Q1 every single year except for one — and that was last year. RIM is going downhill fast. I wouldn’t be surprised if its next earnings call is its last.