BlackBerry has shown signs to review its policy due to unexpected quarterly losses. BlackBerry’s share declined by 28% in both United States and Toronto trading market.
The Canadian technology giant has been losing its pace in competing with Apple’s iPhone, Samsung’s Galaxy phones and other devices running with Google’s Android OS. Its sales margin was up 13% from the last quarter, a time when consumers were eagerly waiting for the BB10 phones to launch in the market.
“The decline in sales for the BlackBerry 10 is not a good sign and it is not working as well as the Z10. The summary for the second quarter loss is a thing BlackBerry should be concerned for,” Morningstar analyst, Brain Collelo said.
Two new smartphones were unveiled by BlackBerry in 2013, first the touch screen Z10 device and then the flagship Q10, which was similar to the old design that included the mini keyboard, which is the trademark of BlackBerry.
BlackBerry also revealed the Q5, an inexpensive keyboard device mainly focused to gain emerging markets. It also intend to launch one more low-end phone powered by its old BB 7 OS at the end of the year with a target to get its market share back which is spell bounded with inexpensive Android devices.
Forecast of current-quarter loss
The Company predicts an operating loss in the ongoing quarter. CEO ThorstenHeins emphasized on major investments in emerging markets. Venezuelan currency restrictions have also reduced the earnings by 10 cents per share.
The firm has been reluctant in designing new smartphones and sure about their operations and devices are also not ready to reach the market shelves for major holiday season at the end of previous year.
The Z10 was available in the significant US market in late March, while the Q10 device managed to hit shelves in the US after the end of year’s 1Q.
The Canadian maker mentioned to sell 6.8 million smartphones in the quarter. It said 40% of them; 2.72 million devices approximately were BlackBerry 10 devices.
Reports show a total $84 million loss, or 16 cents per share for the first quarter ended June 1. Last year, the net losses were $518 million or almost 99 cents per share.