The planet was expecting BlackBerry to lose money. But I don’t think anyone expected this. Here are the highlights…. Or as the case may be, lowlights:
- BlackBerry’s Q3 loss totaled $4.4 billion, or -$8.37 per share. That includes some one time charges and a huge write down.
- The company shipped just 1.9 million smartphones. A massive drop when compared to the previous year where they shipped 6.9 million phones.
- BlackBerry doesn’t report subscriber figures anymore, but it’s a safe bet that the number of subscribers is equally as dismal.
The full details can be found in this PDF.
Another thing to note is this:
The Company announced today that it has entered into a five-year strategic partnership with Foxconn, the world’s largest manufacturer of electronic products and components. Under this new relationship, Foxconn will jointly develop and manufacture certain new BlackBerry devices and manage the inventory associated with those devices. The initial focus of the partnership will be a smartphone for Indonesia and other fast-growing markets targeting early 2014.
“This partnership demonstrates BlackBerry’s commitment to the device market for the long-term and our determination to remain the innovation leader in secure end-to-end mobile solutions,” said Chen. “Partnering with Foxconn allows BlackBerry to focus on what we do best – iconic design, world-class security, software development and enterprise mobility management – while simultaneously addressing fast-growing markets leveraging Foxconn’s scale and efficiency that will allow us to compete more effectively.”
Clearly BlackBerry isn’t giving up the handset business to focus on software. Some people may see that as a major mistake.
So, with these numbers, you have to ask yourself this question. Is this the bottom ahead of a comeback led by John Chen or if the end is near?
UPDATE: I’ve parsed the press release and I’ve come up with some more nuggets:
- When it comes to BBM, BlackBerry got 40 million newly registered iOS/Android users in the last 60 days. The thing is, that none of them are paying to use the service. But it could be a future source of revenue.
- Most of the smartphones that were sold were BlackBerry 7 devices and not BlackBerry 10 devices. Huh?
- BlackBerry has $3.2 billion cash on hand.
So far, the stock is not in free fall prior to the market open. But we’ll see what happens when the markets actually open.
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This entry was posted on December 20, 2013 at 8:40 am and is filed under Commentary with tags BlackBerry. You can follow any responses to this entry through the RSS 2.0 feed.
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BREAKING: BlackBerry Posts Massive Loss [UPDATED]
The planet was expecting BlackBerry to lose money. But I don’t think anyone expected this. Here are the highlights…. Or as the case may be, lowlights:
The full details can be found in this PDF.
Another thing to note is this:
The Company announced today that it has entered into a five-year strategic partnership with Foxconn, the world’s largest manufacturer of electronic products and components. Under this new relationship, Foxconn will jointly develop and manufacture certain new BlackBerry devices and manage the inventory associated with those devices. The initial focus of the partnership will be a smartphone for Indonesia and other fast-growing markets targeting early 2014.
“This partnership demonstrates BlackBerry’s commitment to the device market for the long-term and our determination to remain the innovation leader in secure end-to-end mobile solutions,” said Chen. “Partnering with Foxconn allows BlackBerry to focus on what we do best – iconic design, world-class security, software development and enterprise mobility management – while simultaneously addressing fast-growing markets leveraging Foxconn’s scale and efficiency that will allow us to compete more effectively.”
Clearly BlackBerry isn’t giving up the handset business to focus on software. Some people may see that as a major mistake.
So, with these numbers, you have to ask yourself this question. Is this the bottom ahead of a comeback led by John Chen or if the end is near?
UPDATE: I’ve parsed the press release and I’ve come up with some more nuggets:
So far, the stock is not in free fall prior to the market open. But we’ll see what happens when the markets actually open.
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This entry was posted on December 20, 2013 at 8:40 am and is filed under Commentary with tags BlackBerry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.