Many analysts and industry professionals claim that Microsoft’s Windows Phone 8 will overtake BlackBerry. While that might be true of BlackBerry 7, I find it hardly the case against BlackBerry 10.
Earnings from Windows Phone 8 top vendor, Nokia, may prove my point. Elephant Analytics on Seeking Alpha has compared the gross margin of the Nokia Lumias from their recent Q1 earnings report.
From their analysis, Nokia barely makes any money from hardware sales. BlackBerry Z10’s gross margin is much higher than that of the Nokia Lumia. Apparently, one BlackBerry Z10 reaps the same amount of profit as three Nokia Lumias.
Though, it doesn’t only appear to be such a gain on solely BlackBerry 10 sales. Elephant Analytics claims BlackBerry “still makes 20% more per legacy BlackBerry 7 device than Nokia does for their new Windows Phone 8 Lumias. While Nokia may have needed to clear out inventory by selling their Windows Phone 7 Lumias at cost, BlackBerry is still able to get significant value from BlackBerry 7 customers due to service revenues.”