News by Luke Jones on Friday September 26, 2014.
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Is Blackberry rebounding or is the path to its demise just levelling out? It depends who you listen to of course, but one thing is certain, the company's losses are moving in the right direction. That's probably a weird statement, but the truth is Blackberry's losses are falling and the company is creeping slowly back to being a profitable entity. However, the road is still long and there are no guarantees that the Canadian brand will ever reach its desired destination.The company formally known as RIM has today announced losses of $207 million for its second quarter. That of course is a disastrous figure, but it shows massive progress in the right direction for Blackberry. To put the number into perspective, predictions posted losses for this quarter at much higher (over a hundred million dollars more in most cases). So, the company is performing better than expected and compared to this time last year things are positively rosy. During Q2 of 2013 the company was probably at its lowest ebb and recorded a devastating loss of $965M, a figure that put the very future of Blackberry on the brink. So, the company is making rapid progress and in fact predicts that it will be back in profit by the end of the 2015 fiscal year. If that prediction comes to fruition it would be a remarkable turnaround and with Blackberry back in the, well black, the company could further its growth strategies more aggressively. There are a couple of questions that would be fair to ask, such as, how is Blackberry moving in the right direction, and how is it possible when no one is buying the company's smartphones? That is not a flippant question either, in almost every region Blackberry's market share has slipped to non-existent, but somehow the company is getting itself out of trouble. It helps that the brand does not even need to shift a lot of units to return a sales profit, with BlackBerry CEO John Chen saying earlier this year that 10 million sold smartphones a year would do it. Spreading its services has helped somewhat, with BBM heading to iOS and Android and gaining some 91 million users around the world. Of course, there are issues too, such as how does Blackberry make consumers buy its new devices instead of the old ones. The company may well make that 10 million golden number this year, just about, but it will be mostly from legacy handsets like the Bold. That is a well that will eventually run dry, so the company needs another one to tap. Step forward the Passport, a device that launched this week as a sort of greatest hits of Blackberry; QWERTY keyboard, large touch screen, productivity oriented, and with some cool features. The handset has generated more buzz than anything the company has done for years, so it could well be the device that drives Blackberry back into profitability in 2015.
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.