The former powerhouse who was referred to as “Crackberry” is now falling down a tunnel of loss and misguidance. The second quarter of 2013 further emphasized the bruises endured from the lagging handset supplier. BlackBerry states their losses reached an astounding amount of $1-billion. Most of this resulted from the write off loss of more than $900 million from phones that never sold. BlackBerry’s final nail is being driven into their coffin.
Losses and Bad News
As a result of the company’s immense financial woes, 40 percent of their work staff will be released next week. This would be approximately 4,500 employees across the globe. For consumers who have remained with BlackBerry through thick and thin, this recent revelation is not a surprise. The executives know they need a strategic and powerful renewal of resources and guidance.
For several years Apple and Google have made a mockery of the BlackBerry brand. Their enhanced feature phones started winning over consumer hearts and BlackBerry took on the worse position. They tried fighting against them, instead of creating a differing path. This fight resulted in unsold phones gaining traction over gains, resulting in a $900 million loss.
Upon release of the BB Q10, store employees from retailers like Verizon and AT&T shared the dismal customer interest. Many of those same consumers returned the device in search of an iPhone or Android device. It seems with the biggest slap against their checkbook, the company will focus less on the consumer market and reignite a mission to enterprise and professional clients.
BlackBerry Considers Going Private
This is a similar stance seen over at Dell, where Michael Dell just won over stockholder opposition to take the company private to reorganize. Perhaps, closing off the consumer market will benefit BlackBerry to develop innovation on a different path. There has been rumors BlackBerry has considered going private to review the next steps of rebuilding. Fighting against the mountains of Apple and Google are doing nothing more than sending them down a further decline.
The news of the loss and 4,500 employees being released overshadowed a BlackBerry milestone this weekend. The company was a day late and a dollar short to introduce the BBM (BlackBerry Messenger) for iOS and Android users. Mobile users who are curious or once owned a BlackBerry may take a moment to download the app, but it seems to be nothing more but a shot in the dark for BlackBerry to hang on.
The company hopes by shifting their market interest, they can remain standing. Reducing their staff, slimming down to just four handsets and concentrating on and end to end services may assist the company in finding their footing. Perhaps, making these moves so public is BlackBerry’s way of becoming more appealing to a buyer.
Sell, Sell, Sell!
The company has made it no secret of their interest in selling. Executives with BlackBerry has shared muted desire to sell their shares by Thanksgiving. One company that is currently reviewing BlackBerry is Lenovo. On the opposite end, Lenovo performs very well as a leader in the PC and laptop market, yet its own mobile market is lagging. Could this be a perfect marriage?
Yang Yuanqing, CEO of the Chinese based firm stated his company provides a price point for all consumers. Lenovo has expressed interest in growing outside of China, something BlackBerry does do well. BlackBerry has international acceptance and demands in India and Africa. This could place Lenovo in a strategic position to take on the failing mobile manufacturer and create affordable, high-end devices.
High Hopes for the Future
Consider the pros of this possible integration of minds. Apple has taken the credit for creating hardware and firmware right from their same warehouses. This is also something BlackBerry can tout to a potential seller. A buyer like Lenovo can do tremendous things overseas between melding the mobile and enterprise markets. Only the next quarter will determine BlackBerry’s next steps. The company posted a staggering loss stemming from $900 million in unsold phones. There is high hopes the company will sell to continue its legacy.
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