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BlackBerry operating loss nears $1 billion for Q2, focus now on enterprise

Posted: , by Alan F.

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BlackBerry operating loss nears $1 billion for Q2, focus now on enterprise
Beleaguered Canadian manufacturer BlackBerry announced on Friday that it expects to report an operating loss of nearly $1 billion for the second quarter. The company has decided to give up chasing iOS, Android and Windows Phone and will concentrate on the enterprise part of the industry, a sector where BlackBerry's name still carries some cache. Much of the loss can be blamed on the first BlackBerry 10 model, the all-touch BlackBerry Z10. The company is taking a pre-tax write down on the phone of $930 million to $960 million for the second quarter.

Before the announcement, BlackBerry's shares had dropped as much as 24% to $8.01. Trading in the stock was halted late Friday and will resume on Monday. As part of its new focus on the enterprise, BlackBerry will layoff 4500 employees or 40% of its workforce before the year ends.

It really was no surprise that the Canadian OEM was considering giving up on the consumer end of the business. The company is rolling out its popular BlackBerry Messenger social networking app to iOS and Android users starting today. But the most embarrassing news on the consumer front is that BlackBerry shipped only 3.7 million smartphones in the three month period, and most of those were running BlackBerry 7, the company's older OS. So what will happen to the launch of the BlackBerry Z30, which was just announced on Thursday? As we stated on Thursday,  the first 5 inch 'Berry appears to be the swan song for the BlackBerry name

"We are implementing the difficult, but necessary operational changes announced today to address our position in a maturing and more competitive industry, and to drive the company toward profitability." - Thorsten Heins, CEO, BlackBerry

Will another company buyout the BlackBerry consumer business? Microsoft is said to be interested. Over the last three months, the number of BlackBerry Enterprise Servers installed has jumped from 19,000 to 25,000 which is an indication why the Waterloo firm could very well succeed in the enterprise niche of the smartphone market. The bottom line is that BlackBerry never read consumers that well at all.
source: BlackBerry via USAToday

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posted on 20 Sep 2013, 17:31 3

1. Ninetysix (Posts: 2387; Member since: 08 Oct 2012)

RIP :( Was good while it lasted BB.

posted on 20 Sep 2013, 17:34 1

2. GeekMovement (Posts: 2156; Member since: 09 Sep 2011)

Too bad for them. I doubt bbm will last long either.

posted on 20 Sep 2013, 17:56

3. D.Aceveda (Posts: 396; Member since: 30 Jun 2012)

They should of took a chance on Android back in 09-2010. Motorola did

posted on 21 Sep 2013, 01:18

26. Suo.Eno (Posts: 498; Member since: 17 Feb 2013)

Not necessarily... They could have also opened up BB OS 10 all the way and just keep the back end enterprise secure services out w/ a 10 foot pole. Lots have suggested this before and contrary to popular belief it's not really that hard to do. This way by open means more interested devs can come in and push the consumer side up, probably do cool things like Android emu + apps while BB can nit and pick out of the code base and veto on rels' to tie in the enterprise/biz/secure parts.

Unfortunately as we all know by now all that requires a pair of big ones from the outset which clearly never happened.

posted on 21 Sep 2013, 03:41 2

29. D.Aceveda (Posts: 396; Member since: 30 Jun 2012)

What do you mean "Not necessarily"

Yes necessarily.They could of adopted Android years ago or listen to the market change and that was a demand for touch screen devices. What did they do? They didn't listen and stuck with keyboards until recently. Tried doing the "Android EMU" thing. Why emulate Android? They could of just adopted it but they (The 2 previous CEOS, and even the current) have their head up their asses.

Android could of been a huge win had they adopted it, or partially adopted it THEN. Now its too late. Enterprise is all they have left

posted on 20 Sep 2013, 17:58 11

4. lovefist (unregistered)

Maybe ms could swoop in and have them 'eloped' :-)

posted on 20 Sep 2013, 18:22 9

8. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)

Nokia was the largest patent holder talking about mobile communication technologies. In such context compared to Nokia, BlackBerry is totally nothing.

posted on 22 Sep 2013, 00:07

37. kanagadeepan (Posts: 922; Member since: 24 Jan 2012)

May be there is already some Elop's junior working in BB or even heins has some under table agreement with M$ to bring down BB share to around 4 to 5$ and Microsoft get it for real cheap, like they got Nokia cheaper than Skype..

posted on 20 Sep 2013, 18:09 1

5. AfterShock (Posts: 3698; Member since: 02 Nov 2012)

Better prepare the life boats.

posted on 20 Sep 2013, 21:44 2

21. RaKithAPeiRiZ (Posts: 1488; Member since: 29 Dec 2011)

Women and Children first , light the flares ,send out a SOS !!!!!

posted on 20 Sep 2013, 21:54 1

22. Commentator (Posts: 3692; Member since: 16 Aug 2011)

That's all BlackBerry needs right now, accusations of child-labor.

posted on 20 Sep 2013, 18:14 1

6. uchihakurtz (Posts: 371; Member since: 12 Nov 2012)

Perhaps they can focus on making apps for both or all 3 remaining platforms in the market and try squeezing money from them. What people said is they have a great keyboard, email client, and also BBM. Spice them up, make all apps have a unique feature then Bam! Profits, for a while...

posted on 20 Sep 2013, 18:25

9. PapaSmurf (Posts: 10456; Member since: 14 May 2012)

They did with BB10 and their new handsets, and look where they're at now.

posted on 20 Sep 2013, 19:45 1

13. uchihakurtz (Posts: 371; Member since: 12 Nov 2012)

No I mean like for example make the BlackBerry swiping up keyboard thing available on Android, BBM on all platforms, etc.. Not hardware.

posted on 20 Sep 2013, 18:35 1

10. Commentator (Posts: 3692; Member since: 16 Aug 2011)

"Spice them up, make all apps have a unique feature..."

Unfortunately that's easier said than done...

posted on 20 Sep 2013, 19:45

14. uchihakurtz (Posts: 371; Member since: 12 Nov 2012)

Yeah it's really hard making something unique with the vast options of alternative apps. But security is their plus point yes?

posted on 20 Sep 2013, 20:04 2

15. Commentator (Posts: 3692; Member since: 16 Aug 2011)

With the recent NSA revealings, I wouldn't say security is anyone's plus point any more. Least of all BlackBerry, a company infamous for helping government agencies in the name of national security.

I suppose if BB can convince the public they have an absolutely-secure system they'd have a shot though, but they have to prove that they actually make a difference.

posted on 20 Sep 2013, 18:17

7. BillyG (Posts: 305; Member since: 24 Sep 2012)

great news, cant wait to buy Q10 or Z30 for 99 bucks off contract :D

posted on 21 Sep 2013, 00:02

24. rodneyej1 (Posts: 3576; Member since: 06 Jul 2013)

What❓ Maybe 99¢

posted on 21 Sep 2013, 13:39

35. BillyG (Posts: 305; Member since: 24 Sep 2012)

nah... 99¢ is not rational... i really wouldnt mind paying 99 for z30 or q10

posted on 22 Sep 2013, 06:13

39. iDroid8 (Posts: 155; Member since: 16 Oct 2012)

Me too! Will be a nice thing to play with for some time, at that price.

posted on 21 Sep 2013, 03:13

28. WHoyton1 (Posts: 1635; Member since: 21 Feb 2013)

i can wait! It will get no support at all you realise!

posted on 20 Sep 2013, 19:01

11. RomeoJDR (Posts: 244; Member since: 09 Dec 2011)

And yet the CEO who drove the nail into the coffin will still make millions.

posted on 20 Sep 2013, 19:11 2

12. Commentator (Posts: 3692; Member since: 16 Aug 2011)

Hopefully those laid-off can find good employment at companies that aren't going down the tubes, like Samsung, Google, Apple, etc.

posted on 20 Sep 2013, 20:09 5

16. Glim12808 (Posts: 394; Member since: 26 Oct 2011)

I'm a WP fan all the way through but I still feel sad for BB, and even sadder still for all those who will lose their jobs this coming Christmas season.

I just cannot understand why BB does not have a Plan B! All well-run companies have a Plan B, and C, and D! While developing BB10, they should also have experimented on Android and WP, or some other OS, secretly in case BB10 fails!

posted on 20 Sep 2013, 20:10

17. Commentator (Posts: 3692; Member since: 16 Aug 2011)

Well, if we knew that then it wouldn't be much of a secret, would it?

posted on 20 Sep 2013, 20:11

18. Jeradiah3 (Posts: 1032; Member since: 11 Feb 2010)

we all knew this was coming.............I was waiting for him to admit to it. The waited too late to update their phones and software whereas Android and Apple did.

posted on 20 Sep 2013, 20:36 1

19. xtroid2k (Posts: 521; Member since: 11 Jan 2010)

blackberry is already on plan b which was getting new leadership.

posted on 20 Sep 2013, 21:28 1

20. JewBakaUCFG (Posts: 173; Member since: 25 Sep 2012)

Cue Taps.

posted on 20 Sep 2013, 23:09

23. andrexx24 (banned) (Posts: 22; Member since: 09 Jul 2013)

Just die already blackberry! It was nice to meet you.

posted on 21 Sep 2013, 00:08 1

25. rodneyej1 (Posts: 3576; Member since: 06 Jul 2013)

You know,, Hyundai/Kia was almost dead here in the US several years back,, and look at them now... You never know what the future holds that's why I'm never quick to write any company off... WP is going to be a prime example of this... A few years from now all the people who wrote WP off are going to have their feet in their mouths..

posted on 21 Sep 2013, 02:42 2

27. andrexx24 (banned) (Posts: 22; Member since: 09 Jul 2013)

You know What... I don't use any blackberry devices, so I could care less if they vanish, I only feel sorry for the people that lost their jobs thanks to the incompetence of the people on top of them to really drive the company to succesful path, I wish these people find a better job in company that really knows what the consumer REALLY WANTS! Keeping them competent in the game, they did not listen to the people, so it's their fault, I am not writing off the company, but one thing is for certain, it's gonna take a huge miracle to save it, a titanic effort which is virtually impossible look at the last phone they put out, the Z30 do you think that is going to put them back on the map? Let's be realistic here can we?

posted on 21 Sep 2013, 11:58

33. Dastrix (unregistered)

rodneyej1 is right about WP, but I do agree with what you said about BB. Its chances are slim in the phone industry, it's impossible there. Changing the corporate strategy and mindset is still realistic, though, especially when talking about the enterprise sector, where BB is still relevant. It's a drastic change for sure, but possible, and *might* be a successful strategy, just like IBM if you recall.

posted on 21 Sep 2013, 13:32

34. haseebzahid (Posts: 1853; Member since: 22 Feb 2012)

well to get back on feet from that point they need a true revolutionary idea not some multi core spec war thing . but we all know what nokia did in there most difficult time, they thown their Ace card in camera tech where no one was bothering before revolutionary or not it was damn unscratched portion in moblie sector and they survived. MS bought them sure it was their plan all the way from start....most smart people were sure of that from day nokia signed the contract with MS

posted on 21 Sep 2013, 09:11

30. doug.b (Posts: 1; Member since: 21 Sep 2013)

I'm really surprised at the phone carriers response to all this. BB product is more or less competitive, and it should be in the carriers best interest to promote the platform. Now the carriers are faced with a situation where their entire product lines and inventories are contolled by the behemoths of Apple, Google, and Microsoft... not a good position to be in Mr. AT&T.

posted on 21 Sep 2013, 09:54

31. awani1 (Posts: 30; Member since: 16 Sep 2013)

In my country there's atleast 4 bb users in every home of 5..d people don't understand android nd can't afford iOS devices, evry oda day I see a friend or colleague with a new bb so I just wonda where all d loosin nd dieing is coming from since bb is still a big deal I'm my country nigeria

posted on 21 Sep 2013, 10:20

32. Altair (Posts: 367; Member since: 02 Feb 2012)

I foreseed this more than two years ago.

BB=RIP in less than a year

posted on 21 Sep 2013, 19:11

36. mkl4466 (Posts: 53; Member since: 25 Sep 2008)

Fire sale? Unlock the bootloader and let devs have a field day. I missed out on the touchpad, I hope I don't miss My chance to scoop up a cheap z10. The Z10 and Q10 should have been 99 cents on two year contract. Too bad, they could have moved some units.

posted on 22 Sep 2013, 05:11

38. Cod3rror (Posts: 129; Member since: 06 Apr 2013)

✔︎ Siemens
✔︎ Palm
✔︎ Motorola
✔︎ Nokia
✔︎ Blackberry

posted on 22 Sep 2013, 11:38

40. MobileKicker (Posts: 212; Member since: 19 Sep 2013)

The z10 is surely better than q10

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