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BlackBerry's bad news - company ships 6.8 million smartphones in Q1 2014 and loses $84 million in the process

News by Andrew Kameka on Friday June 28, 2013.

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BlackBerry has faced some tough times in recent years but CEO Thorsten Heins has been optimistic about chances for a turnaround with BlackBerry 10 OS. Those chances took a setback today as BlackBerry announced that it lost $84 million in the past three months.

After two quarters of encouraging signs, BlackBerry lost money in the first quarter of its 2014 financial year, which ended June 1, 2013. The losses came at a bad time because this was the first quarter that featured a full sales period of BlackBerry 10 devices being available in major markets in North America and Europe. The period did not include BlackBerry Q10 sales in the U.S., but it did include BlackBerry Z10 sales. BlackBerry reports that it shipped 6.8 million smartphones during the quarter, but only 2.7 million of it those sales were for BlackBerry 10 devices. The remaining sales were for older phones running BB 7.

More bad news came with the revelation that BlackBerry subscribers fell to 72 million, down from 76 million. An increase in subscribers led to optimism for BlackBerry when subscriber totals reached 78 million in September. Software and services accounts for 29 percent of BlackBerry's revenues, so a fall in subscribers is not what the company wanted to see. Combined with the lower-than-expected sales for BB10 devices and this raises questions about BlackBerry's ability to compete for third place in the smartphone market.

source: BlackBerry

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Andrew Kameka
Andrew is based in Miami, Florida.

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