BlackBerry's Near $1bn Loss As Phones Flop
Struggling smartphone maker BlackBerry has confirmed a loss of $965m (£599m) for the second quarter - much of it down to the the failure of its latest handsets.
The figure includes a writedown of $934m for unsold phones such as the Z10, one of two devices released earlier this year in a high-profile attempt to turn the company around.
Customers have not been impressed with the latest offerings and the Canadian firm continues to lose market share to rivals such as Apple and Samsung.
BlackBerry shipped 5.9 million phones in the second quarter, far less than the nine million new iPhone models Apple recently sold in just a few days.
BlackBerry's results - which it warned the market about last week - also revealed a big drop in quarterly revenues - from $2.9bn a year ago to $1.6bn today.
The company is taking drastic steps to ensure its future and recently announced it was laying 4,500 staff.
It also unveiled a 'rescue plan' earlier this week in the form of a buyout by its largest shareholder, Fairfax Financial Holdings.
However, the deal is still to be finalised and the company is open to other offers.
In a statement, BlackBerry boss Thorsten Heins said the company was "very disappointed" with its latest results and that "major changes" were under way.
He added: "We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company with $2.6bn in cash and no debt.
"We are focused on our targeted markets, and are committed to completing our transition quickly in order to establish a more focused and efficient company."
BlackBerry still has some 70 million subscribers worldwide, but most of these are using older handsets.
According to research firm IDC, BlackBerry had just 2.9% global market share in the second quarter, with Android devices at nearly 80% and Apple phones at 13%.
In Autumn 2009, the company had 20% of the smartphone market and it was also once Canada's most valuable company, with a market value of $83bn (£52bn) in June 2008.
Fairfax's recent offer for the firm valued it at just $4.7bn (£2.93bn).
The company has said its new strategy will see it re-focus on its core business market, and in future it will only offer two high-end devices and two entry-level handsets.