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Blackberry reports a £2.7bn loss for Q3 2013

Shifts just under 2 million smartphones during the quarter
Fri Dec 20 2013, 16:04
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STRUGGLING CANADIAN PHONE MAKER Blackberry has reported a $4.4bn (£2.68bn) third quarter loss for 2013 as uncertainty of the company's future hits sales.

The deficit was attributable to writedowns, impairment charges and revenue more than halving to $1.19bn as the smartphone maker managed to shift just 1.9 million smartphones in the third quarter, nearly 50 percent less than the quarter before.

The loss ensured shares of Blackberry also dropped by 6.2 percent to $5.86 in pre-market trading.

Although the firm retains a user base of 70 million wordwide, most of these users are operating older handsets, which is perhaps telling of the success of the newer Blackberry 10 platform.

The almost £3b loss was reported at the same time Blackberry announced a five-year partnership with Foxconn to develop and manufacture a handset for fast-growing markets including Indonesia.

Earlier this year, in November, Blackberry's new CEO John Chen took his first steps to overhaul the company on Monday by showing three executives the door.

Announcing that that COO Kristian Tear and CMO Frank Boulben will leave the firm, Blackberry replaced CFO Brian Bidulka by head of compliance James Yersh, who will stay on as a special advisor to the CEO for the remainder of the financial year.

This staffing shake-up comes just weeks after Thorsten Heins left as CEO of Blackberry, promptly replaced by Chen. Heins stepped down as Blackberry announced that it had accepted a $1bn investment after a $4.7bn buyout from Fairfax Financial reportedly fell through. µ

 

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