Beleaguered Blackberry reports $965 million second quarter loss

“Blackberry has reported a second quarter net loss of $965 million following a slump in sales,” BBC News reports. “It also announced 4,500 job cuts in a bid to stem those losses. Earlier this week Blackberry agreed to be bought by a consortium led by Fairfax Financial, its biggest shareholder, for $4.7 billion.”

“The company’s financial problems came to a head this year following disappointing sales of its new Z10 smartphone. Sales were so poor that Blackberry had to write off $934m in the second quarter to account for the weakness,” The Beeb reports. “The firm reported total sales of $1.6bn compared with $3.1bn in the same quarter of 2012, a near 50% fall.”

The Beeb reports, “In the second quarter, Blackberry said it sold 3.7 million Blackberry smartphones. That compares with 7.4 million shipments in the same period of 2012. To put that into perspective, Apple sold nine million of its new iPhone 5S and 5C models on the opening weekend of sales.”

Read more in the full article here.

MacDailyNews Take: Thanks to The Beeb’s boot to beleaguered, destroyed BlackBerry’s face there at the end, we’ll just leave it at that.

[Thanks to MacDailyNews Reader “Alan Watson Featherstone” for the heads up.]

Related articles:
T-Mobile USA stops stocking beleaguered BlackBerry’s phones – September 26, 2013
Amateur hour is over: Beleaguered BlackBerry sold to Fairfax Financial-led consortium – September 23, 2013
Beleaguered BlackBerry’s CEO calls Apple’s iPhone old news – March 18, 2013

34 Comments

  1. So sad, I doubt that anyone at Apple is happy about this. A ounce big competitor and innovative was destroyed because it failed to respond to Apple’s disruption (innovation) of the smartphone padrigam.

    A once innovative and dynamic company lost because of “Big Company” strategies. BBs may have a great system but who cares ? Complexity rules again.

    1. “Big Company” strategies? What do you thing RIM used prior to the iPhone being released? RIM locked companies into its proprietary email and handset system, keeping companies from moving to Palm, Microsoft, etc.

      Blackberry is on its deathbed because it failed to respond to Apple’s paradigm shift. That’s the one thing you have to hand to Google: It immediately recognized how much the iPhone was going to change mobile phones and moved very quickly to change Android to compete.

      Of course, Google stole and cheated its way to competition, but that’s been hashed out before and will continue to be argued about for years to come.

  2. Now we’re just kicking a dead horse. Can’t wait for the day when the headlines start with “Beleaguered Google…” or “Beleaguered Amazon…” Those two need a kharma bitchslap.

    1. Won’t see “Beleaguered Google”. If nothing else, Google is constantly trying new things and just released a new algorithm for its search engine.

      Now Amazon may be another story. It’s profit margins are so thin that a few bad quarters could cause serious harm to its ability to operate.

  3. Agree with Grizz. Blackberry was a cool company. They made some stupid remarks regarding plastic keyboards and Apple entering the phone market, but they never thieved like Google and most dispicable Samsung. Basically they were unprepared for the flood and became cannon fodder. Their only real crime was falling asleep at the perverbial wheel (maybe the scrool wheel?).

  4. Many crackberry handsets were poor quality, at work I have seen crackberry owners frustrated by the battery problems, freezing where nothing worked until the battery was removed, put back and switched on again, bad OS, BBM used as a tool during London riots, keyboard problems, track wheel getting dirt and unresponsive problems, oh boy, it was a cracker. However saying that they didn’t rip of apple as Samsung did, however in have seen a crackberry phone what ever model it is that had a silver bezel around it, a copy go iPhone 3G

    1. Blackberry is getting bought out. That always makes the stock go up.

      The sooner you stop trying to equate stock price and movement with the news, the sooner your migraine will go away.

  5. They’re releasing he Z30 today, how long till these are written off too? 50% yoy drop in sales means that once faithful customers are leaving in droves for other platforms. The company that launched a “Being in Business” ad campaign looks like it’s going out of business.

  6. The reveling in a companies demise seems incredibly ignorant, why is it good when tons of people loose their jobs and personal investments? I never wished my competitors to fail, I just worked harder to be better, the competition always made me focus on what we could do to improve our products and company. Anything else seems pretty childish.
    The use of the word beleaguered over and over again to me reads lack of creativity. It’s used so much it has no meaning other than a curse to the failing company. How narcissistic does one have to be to celebrate the reduction of jobs that a failing company has to face and the lack of competition that creates equates to less innovation in the market, running a one man race never forces the runner to push himself too hard to finish the fastest. I embrace competition and the jobs that they create. This goofy celebration over Apple running over the competition is ugly and it’s not very well thought out. Competition is for the good of Apple, it’s customers or the business community at large. Samsung has done some very underhanded things to be sure but without them and the android so what would push a Apple to one up in so many ways? To me we need apple pushed from outside Apple because the man who saw constant improvement and innovation has left the building. We need the competitors Apple has so they don’t get lazy, and for them to adopt others ideas and develop tham into better ideas, that’s what apples good at. I also don’t want every dedo I the world to have the same Phone as I do, what’s fun about that? I lived having to be the renegade using a superior product by an underdog company. When a Apple became so mainstream that’s when it became boring to me. The products gets dumbed down for the lowest common denominator and it doesn’t have to preform as well to earn appreciation. No I want competition, I want others to succeed, I want jobs for as many that want to work, I want better ideas to surface. No matter who thinks of them. a monopoly in innovation is never a win for anyone.
    For me this reporting and childish, a celebration of someone else’s failure is wrong in so many ways, kids grow up, Apple can experience bad product, poor leadership or market changes too I think it’s not only possible but I think it’s just around the corner, and that would be very unfortunate.

    1. Clearly, you don’t know the history of Blackberry’s Co-CEO’s comments nor their advertising campaigns, nor the history of the adjective ‘beleagured’ or you wouldn’t object to MDN’s take.

    2. Thank you, I really enjoyed reading your post, there are some wonderful ideas about it.

      You asked the question as to why it is good when tons of people loose their jobs and personal investments? It mimics the selection process of evolution and illustrates an example of extinction that can happens when you neglect and fail to harmonize with the cooperative forces of nature. It is good in that relative way because it opens up for new opportunities. One of these harmonizing ideas is that good and bad are interconnected. The extinction of the whip and buggy manufacturers was a tragic thing to the people who lost their jobs and personal investments but it was a good thing because it was a serious challenge for the automobile manufacturers of the time. There is one principle that you might find useful answering further questions of good. Good for a population may be bad for an individual, bad for a population may be good for an individual.

      Improving the quality and effectiveness of products and services may be influenced by competition but there is also an internal drive that is important, in fact much more important than competition in my view. Along with that internal drive is desire to work with others that share the same course, in the spirit of cooperation. Apple for example has it’s vision and for example, while they compete with Samsung (selling phones) they cooperate with them as well (manufacturing phone components).

      Your point about the goofy celebration of Apple running over the competition, I think it is actually very well thought out, as well as emotive and reflective. Apple makes great products, and they have their vision to do so. Historically the competition at nearly every turn goes and mocks Apple, it has for years and it goes out of it’s way to attack Apple. This is a display of intolerance, so when they finally lose their way there is indeed reason and feeling of a justification as intolerance is one of the great plagues of humanity right now. It is one thing to try to improve your product and services. It is another thing to have to defend your product and services against those who try to destroy you through a variety of means, often neither ethical nor legal. There may be competition all right, but those chronic attacks have demonstrated a lack of cooperation and when it comes down to it a lack of respect. I have no qualms about squashing those who are intolerant and disrespectful.

      That’s why I like being childish, very childish. Children have an open vision of the world and tend to be tolerant and respectful until they are taught otherwise. You really seem to aim a lot of criticism towards those that are childish, but it is precisely those types that are the hope for the future. I’ll take childish at any time, I took it when I was told that my Mac was just a toy and since then I have played with it to build some beautiful projects that surpassed those of my competitors, some of which gleaned insight into what I was doing and became cooperative or respectful competitors. Those that kept on bashing me constantly, well they had no endurance, they had become narrow minded intolerant adults and it’s best to keep those types away from childish types like me.

      I really enjoyed your post, you said a lot of good things that I respect and I do empathize with the loss of jobs and personal investments in this situation.

    3. I don’t see most people reveling in Blackberry failing. In fact, I think most people would love to have seen Blackberry become the main challenger to the iPhone, because Blackberry is an honest company which tried to develop its own tech rather than steal everyone else’s like Google and Samsung have done.

      The word “beleaguered” is a running joke here because of all the “Beleaguered Apple” stories which were rampant back when Steve Jobs finally returned to the company. It’s really a stab at the media for its over-reaction, nay-saying, and overly dramatic ways at gaining attention.

      The problem with your post is that keeping a company going which has been lapped multiple times is not good for society either, even if it costs jobs (people will find new jobs, many times as the companies which replaced their company). Good, smart employees are always in demand.

  7. I don’t see why people are spreading FUD about BlackBerry. True, they made some mistakes in the past regarding physical keyboards, and touchscreens…but that was about it. They were actually an original company who had their own ideas, they never copied from Apple unlike a certain company we all know about. BlackBerry seems like a worthy competitor, if they made the right decisions. I hope BlackBerry manages to survive this.

    1. They did, and that’s the problem. Their innovation was in the past, and then they stopped. RIM thought it had made it, that it was the king of smartphones, and no one could catch it.

      Well, Apple didn’t catch RIM, Apple blew by it. And RIM was too arrogant/smug to see Apple’s taillights fading in the distance to put its car in gear and get going again.

      The real failing of RIM is that it listened to its current customers who said they wanted a trackball and physical keyboard. RIM failed to understand that its real value was not in physical handsets, but its secure corporate communications system (which it failed to recognize as potentially more than just email).

      RIM could have leveraged its user base and secure corporate network delivery as its asset, worked with Apple and created a Messenger app for the iPhone, and even continued to produce phones with physical keyboards for those who didn’t like touch screens.

      But RIM did none of that. It tried to take Apple on directly, and it was massacred. It let its true asset wither and die as its customers defected to the iPhone and Android handsets. And now it’s too late, because people have realized that they don’t need BB.

  8. I can’t see them coming back from this. Even taking Apple completely out of the equation Blackberry faces competition on all fronts from the Android players. Their day in the sun has passed.

    1. But Android would not be anywhere near the threat to Blackberry that it is today if Apple had not developed the iPhone. Android was on track to be a BB clone, not a touch screen device.

      1. Exactly even without the iPhone Android would have stolen Blackberry’s customers in their millions. That Android eventually became iPhone-like rather than BB-like just sped up the decline.

        In the meantime, Blackberry have even greater problems because they can’t just erase Apple from reality. Apple is stealing their top-end and Android is stealing the bottom. There’s no market space left for them to reinvent themselves into capturing. It’s all occupied by companies that are either way ahead of them or move quicker than they do.

  9. You know, I don’t know much about Blackberry, I never had one, but I know this: I resent the idea that your boss could require you to carry one and then think you are available 24/7 to solve problems without being paid for the time. As previously stated, I just said “no thank you”. I’ve known dozens who were “awed” by the “free” technology” and wish they had not been. Back in the days of pagers, people knew it was “after 5pm”. In the beginning days of “blackberry” it was just too easy to demand a quick response after hours especially for things that could just wait.

    It is not so much the Blackberry itself, it is how some decided to use it. I’m glad things have changed. Now you know, my iPhone is my iPhone like yours is yours- you are not going to impose upon me unless it is really necessary.

    1. Agreed. I am amazed that people send an email or text or voicemail and are indignant when I haven’t replied within the hour.

      Guess what folks? Some of us have other clients than just you. We may be in meetings, on conference calls, or simply focusing on important work that we don’t interrupt to check email or messages. I will get messages after I have left the office or on weekends, and I’ll let them sit until the next business day. If I don’t control my schedule, someone else will.

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