Financial News

  • 23 December 2013, 8:41

BlackBerry: 2.7bn Loss As Revenue Plunges

BlackBerry has reported a loss of 2.7bn ($4.4bn) in its third quarter, as its market share has continued to slide.

The makers of mobile phones and other electrical products also said that its revenue dropped by 56% in the same period.

BlackBerry, which at its peak was the third biggest manufacturer in the market, has been struggling to compete as Apple, Samsung and other smartphone makers have come to dominate the market.

The results are the Canadian firm's first under new chairman and interim chief executive John Chen.

Mr Chen said: "The most immediate challenge for the company is how to transition the devices operations to a more profitable business model."

The shares of BlackBerry, which was previously known as Research In Motion, tumbled more than 7% in pre-market trading.

During the quarter, which ended November 30, 2013, BlackBerry sold 1.9 million mobile phones, compared to 3.7 million in the previous quarter.

This year's launch of BlackBerry 10, its revamped operating system, and fancier devices - the touchscreen Z10 and Q10 for keyboard loyalists - was supposed to rejuvenate the brand and lure customers.

But the much-delayed phones failed to turn the company around and have led to a billion-dollar loss last quarter and a multibillion-dollar loss in the third quarter.

BlackBerry also announced it is entering a five-year partnership with Foxconn, the world's largest manufacturer of electronic products.

Foxconn will jointly develop and manufacture certain new BlackBerry devices and manage the inventory of them.

BlackBerry reported revenue of 730m ($1.2bn), down 56% in the same quarter last year.

Its adjusted loss from continuing operations was 216m ($354m), or 67 cents per share.

Analysts polled by FactSet, on average, expect a loss of 43 cents per share on revenue of 1.02bn ($1.66bn).

:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.

Advertisement