Monday, September 23, 2013

Massive loss for BlackBerry

BlackBerry is known to have a tough time and the company just announced that its second quarter did not see any improvements with losses of 1 billion USD.

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In BlackBerry's latest report from Friday September 20, 2013, BlackBerry announced that its sales declined by 45% as compared to the same period last year. In raw numbers, this means that the sales decreased by 1.6 billion USD during the company's second quarter. The bad results were largely attributed to the failed BlackBerry Z10 and Q10 products which resulted in write-offs of 1 billion USD for unsold units.

Due to the recent presented results, BlackBerry has decided to execute painful but necessary changes to turn the trend, as announced by the CEO, Thorsten Heins. For example, 4500 employees are expected to lose their jobs in an attempt to cut costs. In addition, the company will reduce its number of models from 6 down to 4.

It will be interesting to see if BlackBerry will manage to recover from its blow caused by iOS and Android SmartPhones. As of right now, most analysts concur that whatever BlackBerry does, it will be difficult to turn to profit. Perhaps it is time for BlackBerry to abandon its own unattractive operating system and have a look at the Android systems and Windows Phone systems.

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