Blackberry warns of near-$1 billion loss this quarter

BlackBerry logoBlackberry released a statement on Friday saying that it expects to report an operating loss of almost $1 billion in the coming days. According to The Wall Street Journal, Blackberry overestimated the number of new phones it would sell and is facing an “inventory charge of as much as $960 million and a restructuring charge of $72 million.” Specifically, the company said that it would likely report a loss of $950 million to $995 million for the second quarter.

Earlier this week we reported that Blackberry was planning to lay off up to 40 percent of its employees, taking the company from 12,700 full-time employees to about 7,620 employees. The WSJ reported today that 4,500 people will be laid off, lower than earlier estimates. (Is that a silver lining we see?)

The Canadian company also reported today that it only sold 3.7 million smartphones in the last quarter, most of which were older phones. To stem the bleeding, Blackberry said that going forward, its “smartphone portfolio will transition from 6 devices to 4; focusing on enterprise and prosumer-centric devices, including 2 high-end devices and 2 entry-level devices.” As Quartz writer Christopher Mims wrote, it's probably too late for Blackberry to turn around its share of the enterprise market given the latest moves made by Apple and Samsung to get their hardware into the hands of businesspeople.

According to IDC, Blackberry now has about three percent market share for smartphones, down from over 50 percent in the company's heyday. Blackberry share prices were down over 20 percent today after the company released its warning.

Source: Ars Technica

Tags: BlackBerry, smartphones

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Is this an error or it is really happening?
 
 
The proposed topic and architecture was originally presented to the JPEG Committee in 2016
 
 
The rest of the specs as seen on Geekbench include 8GB of RAM
 
Samsung is likely to be made official in February at next year's Mobile World Congress in Barcelona
 
Lumia 950 XL shown running Windows 10 on ARM
 
The company has studied such an option in the past
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
  12345
6789101112
13141516171819
20212223242526
2728293031  




Poll

Do you use microSD card with your phone?
or leave your own version in comments (10)