BlackBerry Ltd Posts $4.4 Billion Loss Turns to Foxconn Apple Inc Supplier

 technology, business blackberry, john chen, apple inc, foxconn $4.4 billion

BlackBerry posted an impressively bad $4.4 billion loss for their third quarter report. In a move to bolster change, the failing smartphone provider is reorganizing. First, former CEO Thorsten Heins was ousted and now it appears BlackBerry is turning to Foxconn for help to develop their devices. If the name sounds familiar, it is. Foxconn is the largest manufacturer of electronic products in the world. In addition, they are a lead supplier for Apple Inc. This move could be exactly what BlackBerry needs to stem an incredible loss of funds.

New CEO, John Chen is looking to cause waves of change. He has taken over the executive chair with a renewed zing calling BlackBerry “very much alive.” He fired several executives and turned to ink a five-year deal with Foxconn Group. The company will manufacturer BlackBerry devices in Indonesia and Mexico. This deal with Foxconn releases the stranglehold around BlackBerry’s manufacturing neck and can provide a path of restarting a once, sensational brand.

Chen is all about making BlackBerry work and has no intention of selling the company, a move that contradicted with Heins, who failed to attract buyers. Chen is not a novice when it comes to turning a company around. One only has to shift their eyes to the database software company, Sybase. Chen took over the helm in a time when Sybase was drowning in the depths of Oracle and IBM Corporation. The revitalized executive rebuilt the Sybase brand and in 2010, his hard work paid off. SAP stepped in and purchased the company for $5.8 billion, a testament of the work Chen can accomplish. Adding Foxconn as a

Chen has turned a company around, can he fix BlackBerry?
Chen has turned a company around, can he fix BlackBerry?

manufacturer and making necessary changes will hopefully, result in less losses. The $4.4 billion Q3 loss seen today reflects poorly on the company.

It was until 2009, BlackBerry was batting an amazing average. The company touted mobile devices that were used on the fast-paced floor of Wall Street. Since the evolution of smartphones and the power of consumers, BlackBerry has horrifically watched their stock price tumble over 90 percent, sending investors into a full-fledged panic. In BlackBerry’s world, their mobile devices were perfected for communication and e-mail tasks. The evolution of the smartphone grew to a hub of entertainment prowess, with Apple Inc. and Android exploding with in-demand apps.

BlackBerry couldn’t keep up in the rat-race. Their once successful formula aimed within a mostly, corporate market, was becoming hidden by the rush of consumer demand for bigger, faster and cooler technology. BlackBerry tried holding on when they developed the Z10, but sluggish sales and negative, consumer feedback resulted in additional losses. Chen has stepped aboard a sinking ship and has less time than most to turn the company around.

Consumers measure the success of phones against popular brands, iPhone or Samsung. With consumers abandoning the BlackBerry platform and even Wall Street snubbing the company, many are left to wonder the fortitude Chen will have left. The motivated executive sees only greener pastures when it comes to redeveloping the BlackBerry brand. He sees the “iconic brand with enormous potential” as a way to steamroll back to the top of the game. His diligence will be closely watched by investors and consumers alike.

BlackBerry posted a disturbing $4.4 billion loss for the Q3 results. In a move to reclaim its footing on a muddy mountain, Chen has released several executives and the company has signed a deal with Apple Inc. supplier, Foxconn. These moves will determine the next step for Chen, BlackBerry and consumer response. It is an exciting new day for BlackBerry and it is with high hopes that Chen can truly change BlackBerry around. The company holds a special place for many, they were a mobile device powerhouse. Hopefully, under the strong leadership of Chen, they will become a force again.

 

Angelina Bouc

Sources
Time
Yahoo
Wall Street Journal

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