BlackBerry reports massive Q3 loss, takes huge charge for unsold BlackBerry 10 handsets
posted by Alan F. / Dec 20, 2013, 2:04 PM
Revenue for the period dropped sharply year-over-year from $2.7 billion in 2012's third quarter, to $1.2 billion. On a sequential basis, revenues fell by 24%. Part of the problem is that the new BlackBerry 10 models just are not catching on with consumers. Of the 4.3 million BlackBerry units sold in the three month period, 3.2 million were BlackBerry 7 OS models. That is quite a revealing, and disturbing, piece of data.
For the quarter, BlackBerry lost $8.37 a share. Not including special one-time charges, the company was $364 million in the red, for a loss of 67 cents a share. That actually was much worse than the figure Wall Street was expecting, which was a 46 cent a share loss. And on a sequential basis, it was lower than the $248 million loss (47 cents a share) that the company reported for its fiscal second quarter.
BlackBerry also announced that it has entered into a five year partnership with contract manufacturer Foxconn. The latter will develop and manufacturer BlackBerry branded handsets and will be in charge of inventory management of the devices. The first new handset under this agreement will be one earmarked for Indonesia.
Posts: 10457; Member since: May 14, 2012
BB is dying. So long for trying to get out of the black by 2016.
posted on Dec 20, 2013, 2:47 PM 0
"Of the 4.3 million BlackBerry units sold in the three month period, 3.2 million were BlackBerry 7 OS models. That is quite a revealing, and disturbing, piece of data." Wow that is quite shocking. I remember when Blackberry (or RIM at that time) announced the Bold 9900/9930.. it was an incredible phone and I've wanted it for so long! Literally almost had me drooling, but I never felt that same excitement when Blackberry announced the BB10. So many years have gone by and not only were their phones still overpriced, but their new BB10 was just not supported enough. Many important apps were missing, the specs and designs of their phones were not refreshing... it was a somewhat sad comeback effort. I was slightly excited about their new software, the gesture-based OS, but other than that there was not much left compared to Android and iOS. Now that I have given up on blackberry, I hope Windows Phone, Sailfish, Tizen, and other newer OS can improve and become equal competition to the rest.
posted on Dec 20, 2013, 2:59 PM 0
Posts: 296; Member since: May 05, 2012
I gave up Blackberry just several months ago in favor of Windows Phone and Android. I still love the gesture based BB10. Sure it needs some polishing and apps but the experience of the OS is something that I'll miss. Blackberry just couldn't learn from their mistakes. It's obvious their main market at the moment are the 'cheap' phones (associated with BB7 or below OS). They just ignored that and keep pushing those overpriced new phones. They need to offer a more 'value' phones than what they've been offering so far. Especially in today's highly competitive mobile industry..
posted on Dec 23, 2013, 9:38 PM 0
Posts: 6023; Member since: Dec 30, 2010
I think BB is in the same territory as Palm and Win Mo, WP. History is causing them to not sell newer stuff. Now matter how good it is. Its either that or that need to go back to the old ways and stop trying to compete with the iPhone and now Android and WP.
posted on Dec 20, 2013, 3:07 PM 0
Posts: 1064; Member since: May 08, 2013
they just need to make a stock android with a 2k 5in display 20mp camera and massive battery and octal core 2.5ghz processor and their back in the game
posted on Dec 20, 2013, 3:39 PM 0
Posts: 203; Member since: Feb 09, 2010
Correct. Maybe add their own spin on top of Android, develop a new feature or two on Android that is missing on other devices instead of pushing BB10. Must have top of the line hardware, not skim on any features, and a nice hardware design, and I think they can be back, specially with their security features for corporate.
posted on Dec 20, 2013, 3:55 PM 1
Posts: 65; Member since: Dec 11, 2013
They didn't lose 4.4 billion, they only lost like 400 million (finance.yahoo.com/news/blackberry-reports-third-quarter-results-120000319.html). Also they are working in emerging markets and they are working on high end phones again. I think the tie will turn next year. I am still happy with my 200 $ Z10. XD
posted on Dec 20, 2013, 4:11 PM 0
Posts: 578; Member since: Mar 21, 2012
The company lost $364 million before charges, which we wrote in the story. After the charges, some of which were for unsold BlackBerry models, they lost $4.4 billion. On a net basis, they losy $4.4 billion. Alan F.
posted on Dec 20, 2013, 6:51 PM 2
Posts: 37; Member since: Jul 23, 2013
Totally WRONG. Inventory write-off is real loss no matter what you call it. It's a delayed loss. When you manufacture a phone, or doing R&D, you make the money spent as investment not cost, but the money was already spent. Then you realize your products don't worth it and mark it down, this is where you recognize the lost.
posted on Dec 22, 2013, 9:47 AM 0
Posts: 53; Member since: Feb 07, 2013
Oh ok ... Alan again, but maybe he forgot to tell us that BB stock rise by 16% after the QR... No wonder he missed it, since he doesn't like to hear something positive about BB..
posted on Dec 20, 2013, 9:12 PM 0
Posts: 3614; Member since: Jan 19, 2011
One of the LEAST telling finicial indicators these days is stock. Think of stock as the "gossip reaction" from someone spreading a rumor. The knee jerk reactions are often overblown and it takes a while for the facts of a story to calm the waters. I have zero idea why stocks would go up on this news as I haven't really read up on it, but do not take it as the beginning of a turn around. Investors may just be reacting to another "BlackBerry is being sold" rumor that hasn't been circulated yet. They could be reacting to good adaption of the BBM platform just released on iOS and Android and pending on WP. They could be a large portion of those investors who are bullish on John Chen as it's leader. Who knows. There is very little positive to take from this for this year. But I do not see this as a death kneel of BlackBerry yet. They have enough cash on hand to absorb a bad quarter or two. They have a new investment partner to work with and a new CEO (is he still an interm?) that seems pumped and willing to fight for this company. Beside, BB10 is a good OS. IF - and it is a big if- BB can get users to try it, they would like it. But it is tough to get something new on the market when the "grid style OS" of Android and iOS are so mainstream.
posted on Dec 21, 2013, 3:16 AM 1
Posts: 35; Member since: Apr 30, 2013
Indonesia was one of the main profit-generator for RIM and i dont know if it still is, but i do really REALLY hope BB jakarta would be Blackberry's next MASSIVE write down. What they did to Indonesia in regards to its "Blackberry Nation" status was terrible. They build their factory in Malaysia to sell in south east asia mainly Indonesia while the Malaysians themselves never favored BB and a lot of Indonesians need job. I hope their failures will be highlighted in business ethic history.
posted on Dec 21, 2013, 4:32 PM 0
Posts: 4; Member since: Dec 21, 2013
When the BB 7 phones were out, we were all excited then they came with this crap BB 10 smartphones. I have a BB and I've told myself I'm never getting one again when I get my new phone. Blackberry doesn't focus on benefitting its customers, all they focus on is making money and that's why all their phones are over priced and as a result they loosing money - it's a ridiculous company. They sell overpriced phones with eddless battery problems etc. Next phone I'm going for is Sony. Shame Blackberry, + now that there's bbm for other smartphones, we won't even think of blackberry now.
posted on Dec 22, 2013, 12:04 AM 0
Posts: 85; Member since: Jan 21, 2013
just slash the price by 50-100 $ off contract and they will sell like hot cakes much like the the playbook ! it works out in my place ! and also people dont want to shell out 400 $ for a phone which has uncertain future ,,,,,
posted on Dec 22, 2013, 10:56 PM 0
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