Blackberry suffers yet more losses in Q1

by Andrew Roach on July 1, 2013

When Blackberry launched their new Blackberry 10 smartphones back in January, it was set to be a make or break moment for the company.

5 months on and the company are still struggling with the company posting a $84 million loss for the first quarter of 2013.

The loss was much more dramatic than what was predicted by market analysts and has seen the company’s stock drop dramatically in North America.

Blackberry’s new range of devices have included the completely touchscreen Z10 which was released in January and the more traditional Q10 which was launched back in May.

Despite the release of two new flagship phones, it hasn’t been enough to help steady the ship for Blackberry who had been hoping for a turnaround in their fortunes.

The company has put a lot of effort into promoting their Blackberry 10 smartphones worldwide but it hasn’t stopped losses building up as the company’s revenue increased to $3.1bn.

It’s hard to pinpoint the exact cause of the staggering loses with the firm not releasing any concrete sales numbers about their new devices.

But with many of Blackberry’s rivals such as Samsung, HTC and Sony all releasing new flagship phones as well over the last few months, the intense competition could well have affected Blackberry’s chances of making it back to the top of the mobile industry.

Although the losses have signalled some major problems for the company, there were some positives to be drawn from the figures.

For starters, the number of shipments made by the company rose by 13% to 6.8 since the last quarter results were announced in April.

On top of that, the $84 million loss was significantly less than what was posted this time last year when the company suffered an alarming $518 million in losses.

Senior officials at Blackberry have tried to remain positive about the situation and still had faith in the Blackberry 10 smartphones. This was underlined by comments made by CEO Thorstein Heins who stated that “We are still in the early stages of this launch, but already, the Blackberry 10 platform and Blackberry Enterprise Service 10 are proving themselves to customers to be very secure, flexible and dynamic mobile computing solutions.”

Even though Blackberry’s latest devices have only been around for a few months, the latest figures show that there is still a lot of work to be done if Blackberry are ever going to regain their status as a leading light in the mobile world.

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What exactly is making Blackberry falter in 2013 —
July 29, 2013 at 5:59 am

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