MacNN Forums (http://forums.macnn.com/)
-   Tech News (http://forums.macnn.com/tech-news/)
-   -   BlackBerry endures $4.4B loss in third quarter, partners with Foxconn (http://forums.macnn.com/113/tech-news/506885/blackberry-endures-4-4b-loss-third/)

 
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="http://macnn.com/rd/300904==http://www.electronista.com/articles/13/09/27/low.revenues.high.losses.confirmed.conference.call .cancelled/" rel='nofollow'>previous quarter</a> and the $114 million lost in <a href="http://macnn.com/rd/300905==http://www.electronista.com/articles/12/12/20/27.billion.in.revenue.down.five.percent.from.previ ous.quarter/" rel='nofollow'>Q3 2012</a>, the company has <a href="http://macnn.com/rd/300906==http://press.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/Investors/Documents/2013/Q3_FY2014_Press_Release.pdf" 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 />
<br />
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 />
<br />
<div align='center'><img src='http://photos.macnn.com/article_images/1387555133-md-z10_1.png' style='max-width: 100%;' alt='BlackBerry Z10' border='0' pagespeed_url_hash="659919482"/><br/><span class='minor2'>BlackBerry Z10</span></div><br />
<br />
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 />
<br />
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="http://macnn.com/rd/300898==http://www.electronista.com/articles/13/02/01/final.design.unveiled/" rel='nofollow'>Z10</a> and <a href="http://macnn.com/rd/300899==http://www.electronista.com/articles/13/09/18/new.blackberry.larger.faster.than.z10.adds.tunable .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 />
<br />
Though the Foxconn deal is a highlight for <a href="http://macnn.com/rd/300900==http://www.electronista.com/articles/13/11/04/heins.replacement.promises.to.rebuild/" rel='nofollow'>interim CEO John Chen</a>, it may not be enough to help the company correct its path. It has already <a href="http://macnn.com/rd/300901==http://www.electronista.com/articles/13/11/25/cfo.budulka.replaced.by.svp.yersh.cmo.and.coo.yet. to.be.replaced/" rel='nofollow'>reshuffled its management</a> and <a href="http://macnn.com/rd/300902==http://www.electronista.com/articles/13/11/04/blackberry.to.drop.heins.raise.1b/" rel='nofollow'>abandoned the sale</a> of itself in favor of accepting investment, and has <a href="http://macnn.com/rd/300903==http://www.electronista.com/articles/13/09/18/layoff.report.follows.z30.introductions/" rel='nofollow'>laid off</a> thousands of employees. It is unclear how much more the company has to do to right itself.
 
All times are GMT -4. The time now is 08:59 PM.

Copyright © 2005-2007 MacNN. All rights reserved.
Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2016, vBulletin Solutions, Inc.


Content Relevant URLs by vBSEO 3.3.2