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

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



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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40 Comments

1. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

RIP :( Was good while it lasted BB.

2. GeekMovement unregistered

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

3. D.Aceveda

Posts: 433; Member since: Jun 30, 2012

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

26. Suo.Eno

Posts: 556; Member since: Feb 17, 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.

29. D.Aceveda

Posts: 433; Member since: Jun 30, 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

4. lovefist unregistered

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

8. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

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

37. kanagadeepan

Posts: 1275; Member since: Jan 24, 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..

5. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Better prepare the life boats.

21. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

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

22. Commentator

Posts: 3723; Member since: Aug 16, 2011

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

6. uchihakurtz

Posts: 428; Member since: Nov 12, 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...

9. PapaSmurf

Posts: 10457; Member since: May 14, 2012

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

13. uchihakurtz

Posts: 428; Member since: Nov 12, 2012

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

10. Commentator

Posts: 3723; Member since: Aug 16, 2011

"Spice them up, make all apps have a unique feature..." Unfortunately that's easier said than done...

14. uchihakurtz

Posts: 428; Member since: Nov 12, 2012

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

15. Commentator

Posts: 3723; Member since: Aug 16, 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.

7. BillyG

Posts: 305; Member since: Sep 24, 2012

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

24. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

What❓ Maybe 99¢

35. BillyG

Posts: 305; Member since: Sep 24, 2012

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

39. iDroid8

Posts: 155; Member since: Oct 16, 2012

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

28. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

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

11. RomeoJDR

Posts: 245; Member since: Dec 09, 2011

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

12. Commentator

Posts: 3723; Member since: Aug 16, 2011

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

16. Glim12808

Posts: 394; Member since: Oct 26, 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!

17. Commentator

Posts: 3723; Member since: Aug 16, 2011

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

18. Jeradiah3

Posts: 1149; Member since: Feb 11, 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.

19. xtroid2k

Posts: 601; Member since: Jan 11, 2010

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

20. JewBakaUCFG

Posts: 176; Member since: Sep 25, 2012

Cue Taps.

23. andrexx24

Posts: 22; Member since: Jul 09, 2013

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

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