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NewsPoster Dec 20, 2013 11:08 AM
BlackBerry endures $4.4B loss in third quarter, partners with Foxconn
BlackBerry has suffered a loss of $4.4 billion for the third quarter, worse than the $965 million lost in the <a href=" .cancelled/" rel='nofollow'>previous quarter</a> and the $114 million lost in <a href=" ous.quarter/" rel='nofollow'>Q3 2012</a>, the company has <a href="" rel='nofollow'>revealed</a>. At the same time as the tremendous loss, the company revealed it has signed a new five-year partnership with Foxconn to create new BlackBerry devices. <br />
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A charge of $2.7 billion against assets, such as unsold BlackBerry devices, as well as other similar charges make up a considerable portion of the loss. It "recognized hardware revenue" on just 1.9 million BlackBerry smartphones in the quarter, a drop from approximately 3.7 million sold last quarter, with the bulk being cheaper BlackBerry 7 devices rather than BlackBerry 10. It notes that 4.3 million BlackBerry phones were sold to customers in the quarter, including shipments made or recognized before the quarter began, with BlackBerry 7 devices making up 3.2 million of that number. In the same quarter's results last year, it reported shipping 6.9 million smartphones and 255,000 PlayBooks. <br />
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<div align='center'><img src='' style='max-width: 100%;' alt='BlackBerry Z10' border='0' pagespeed_url_hash="659919482"/><br/><span class='minor2'>BlackBerry Z10</span></div><br />
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Revenues for the period reached just $1.2 billion, down from $1.6 billion in the second quarter, and down from $2.7 billion year-on-year. Available cash totals $3.2 billion, up from the $2.6 billion the company held at the end of the second quarter. <br />
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The partnership with Foxconn will see the two companies working together on new products, with the initial focus of a smartphone for Indonesia and other "fast-growing markets," suggesting it will be a cheaper device to produce than the <a href="" rel='nofollow'>Z10</a> and <a href=" .antenna/" rel='nofollow'>Z30</a> BlackBerry flagships. BlackBerry will be concentrating on the design and will own all intellectual property, while Foxconn will handle the manufacturing and inventory management side. <br />
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Though the Foxconn deal is a highlight for <a href="" rel='nofollow'>interim CEO John Chen</a>, it may not be enough to help the company correct its path. It has already <a href="" rel='nofollow'>reshuffled its management</a> and <a href="" rel='nofollow'>abandoned the sale</a> of itself in favor of accepting investment, and has <a href="" rel='nofollow'>laid off</a> thousands of employees. It is unclear how much more the company has to do to right itself.
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