BlackBerry posts $4.4bn loss for last quarter; just 1.1m BB10 handsets sold

It's been just six weeks since BlackBerry announced that its proposed sale to Fairfax Financial had been cancelled, and that its plans to take the company private had been abandoned. While Fairfax invested $1bn into the company instead, its directors are probably still rather relieved that they didn't purchase it entirely, as BlackBerry posted its latest bleak financial report for the third-quarter of its 2014 fiscal year. 

It's not easy to find a positive spin to put on these figures, as the news is pretty ugly. BlackBerry reported a net loss for Q3 2014 of $4.4bn, on the back of $1.2bn of revenues. Those revenues were down 56% year-on-year, and down 24% on the previous quarter.


Another depressing chapter in the book of BlackBerry

4.3 million BlackBerry smartphones were sold last quarter; of these, just 1.1 million were newer-generation BlackBerry 10 devices, such as the latest Z30, which didn't exactly impress us in our recent review. By comparison, Nokia sold 8.8 million of its Lumia Windows Phones during its last fiscal quarter. 

Naturally, the company is keen to paint a less devastating picture of its operations, particularly as it continues to work on a restructuring plan, which began with the departure of its CEO, Thorsten Heins, last month. The company's current CEO and executive chairman, John Chen, said in today's financial report that "BlackBerry has established a clear roadmap that will allow it to target a return to improved financial performance in the coming year." He added: "We have accomplished a lot in the past 45 days, but still have significant work ahead of us."

A major component in BlackBerry's roadmap was revealed today, with the announcement of a strategic partnership with leading device manufacturer Foxconn. BlackBerry says that "Foxconn will jointly develop and manufacture certain new BlackBerry devices and manage the inventory associated with those devices." 

Jackdaw founder and analyst Jan Dawson revealed a little more detail on those plans in a series of tweets today, including this one: 

The devices under the new Foxconn partnership will be aimed at "Indonesia and other fast-growing markets", including Mexico. As Dawson revealed, Foxconn will design these devices themselves, leaving BlackBerry to focus solely on the software side, including its BB10 operating system. This partnership will - for now, at least - extend only to "lower-end, emerging market handsets", while BlackBerry will continue to design the hardware for its "high-end / enterprise-centric handsets". 

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Well nobody expected an instant-turn around after Heins left, sounds like they are trying to quickly re-organise and re-structure. Which is more than Heins ever did, he just paid lip-service and followed the same path as his predecessors. They are now cutting costs, working with partners on hardware, looking at different markets. I still don't hold out much hope for them, America, Europe is lost, but if they can carve out a niche elsewhere they can at least continue and be profitable in a different way.

Yes, it was true BB very popular in Indonesia , because of BBM, and then they make the BBM available on android , android phones are cheap.....bye bye BB.

Daaaaaaammmmmnnnnn.

Even with the Foxconn deal they're going to have to sell a megaton of phones to make up 4.4 billion. Plus the Foxconn phones will likely have low profit margins because they're both low end phones and profits will have to be shared with Foxconn. An uphill battle is starting to look like mission impossible.

Damn this is sad. I would have certainly bought a Z30 if only Sprint offered one.
Blackberry is just not getting the support it deserves. Aside from the lack of apps compared to iOS or Android, BB10 is a great mobile OS and I bet people would like it if they gave it a fair chance.

Arpit said,
i like how the wall street is reacting to this... the stock is up 15% lol
Probably speculators buying up stock in case someone now soon comes along to buy them out.

I have no idea why, but they're stock price has surged 17%, as of right now.

I predict them filing bankruptcy sometime next year, and I don't think any company is crazy enough to buy them, unless they have a stash of valuable patents or something.

Woah, this is so dramatic and unprecedented, their loses are many times higher than the total revenue! Sony problems are nothing compared to BB situation.

There is no hope for this company, BB owners should just dismantle the whole thing and sell it while it is still worth something.

This is what happens when you have more managers than engineers. They lost focus on the prize. If they want to sell, I think they want to sell as a unit to get more value, however, buyers only want bits and pieces.

Just saw my first BB Z10 device in public yesterday. Sad really, hopefully thing can focus on BBM and turn things around. Stock did jump today (weird).

Not weird at all now that I read the details. They made 200 million and the deal with Foxconn. The reported loss is on paper only due to the restructuring but that change in valuation is already baked into the current stock price.

I'm actually considering dumping my iPhone for a Z10. I absolutely love the keyboard.

If I could find it for my Nexus 4 or the iPhone, I would pay $100 easy. Everything is situated so logically. It kills me that other keyboards haven't tried to emulate it.

I don't care for apps. I use my phone to talk, tweet, text, and email. Anything else, and I have a tablet for that.

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