“BlackBerry (BBRY)’s shares tumbled the most since 2000 after the company reported a surprise loss and weak sales of a new touch-screen model, underscoring its challenges in competing directly with the iPhone and Android devices,” Hugo Miller reports for Bloomberg News.
“The company shipped 6.8 million smartphones last quarter, including about 2.7 million new BlackBerry 10 models — primarily its flagship Z10 touch-screen phone,” Miller reports. “Analysts had estimated total shipments of 7.5 million, with about 3.6 million BlackBerry 10 units. The Waterloo, Ontario-based company also blamed Venezuela’s currency controls for a portion of its quarterly loss because they hurt Latin American revenue.”
MacDailyNews Take: If Venezuela is affecting your bottom line, and you feel the need to use it as an excuse, you’re already dead.
Miller reports, “Yesterday’s stock tumble more than wiped out its gains for the year, signaling that investors may have been too optimistic about BlackBerry’s ability to wage a comeback fight against touch-screen rivals. ‘The company now is a niche player for the declining segment that clings to a physical keyboard,’ said Erik Gordon, a University of Michigan business professor.”
“BlackBerry shares plunged 28 percent to $10.46. It was the biggest decline since April 12, 2000, when stocks were crashing after the dot-com bubble burst,” Miller reports. “The fall more than erased a gain this year of 22 percent before yesterday.”
Read more in the full article here.
MacDailyNews Take: Dead Company Walking. Still. Come on now, get it over with already.