Money Matters - Simplified

Sales decline!! Is Blackberry at its fag end?

“Finished”, Black berry is finished, rang out a year ago!! At that time, we had heard a loud boom from the President and chief executive of BlackBerry “Not yet”, he had bid time to set things right. But Blackberry hasn’t turned around, folks. It’s sad but true, the fortune is dwindling!!

Blackberry’s downslide

Thorsten Heins, CEO of Blackberry, remembers this conversation carried out a year ago and besides the holdup in the new line of devices, has shoved the Blackberry 10’s into the market now. But this gamble may not have paid off for the company say the reports. In the sales of the first quarter Blackberry reports shipping of 6.8 million phone devices, out of these only new models were only about 2.7 million.

Blackberry phones that were shipped in about 3 month’s time are equal to the number of iPhones that Apple says a goodbye to in a week’s time. Aren’t the figures staggering, people?

Anil Doradla, an analyst with William Blair & Co. in Chicago states "For many, going into these earnings, it was seen as the end of the new beginning. Now, coming out of the earnings, it looks like the beginning of the end."

Share prices drop?

BlackBerry''s share price plunged almost 28% Friday. The company also admitted a whopping unexpected $84 million loss. The analysts it seems had expected 6 cents gain but Blackberry lost 16 cents a share instead. When Heins was questioned about the people’s reaction to the Blackberry 10, he replied back “We''re only five months in."

All the models of the Blackberry 10 are not splashed in the market in the quarter and in this month a Blackberry version with the Q 10 a physical keyboard has hit the U.S. markets. Not the one to feel left behind Heins aspires for the software business and exclaimed "There''s more to come, more exciting products to come."

More losses expected?

Insisting that promotions and advertisements may be taking the major chunk of business, Heins said that some “losses” were expected.''Some more time''was his call once again. Blackberry at one time had earned the name Research in Motion and was leading the Smartphone market.

It had the federal agencies and huge conglomerates under its wand and bagged about 55.3% of the US markets way back in 2009. Apple shook the ground under Blackberry’s feet when it came out with the innovative and interesting downloadable apps and Touch screen.