BlackBerry's revenues have halved in three months, with the Canadian smartphone maker now in a tailspin after the failure of its January relaunch.
Following Monday's agreement in principle to be taken private by the Canadian hedge fund Fairfax, BlackBerry said yesterday that revenues had fallen to
BlackBerry's new generation BB10 handsets have left consumers cold, and the company said on Friday it had booked a
The sharp decline of BlackBerry's balance sheet, which includes a
In the last quarter the company recognised hardware revenue from only 3.7m smartphones, most of them older, BB7 devices; this compares with the 6.5m units of Apple's two latest models that analysts estimate consumers paid for last weekend.
Heins said: "We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure. We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company, with
"We are focused on our targeted markets, and are committed to completing our transition quickly in order to establish a more focused and efficient company."
BlackBerry's revenues in
A year ago BlackBerry could count on more than
Now Heins has signalled a retrenchment from the consumer market, to concentrate on government and corporate clients, but industry watchers are speculating that the business may have to close its manufacturing arm, auction its patents and concentrate on software and secure servers.
The company is up for sale but only one buyer has so far emerged. Fairfax, with a 10% stake in BlackBerry, has offered to take the company private at
Investor scepticism means shares are trading at a discount to the offer, closing yesterday at
Confirmation of BlackBerry's second-quarter numbers, which were pre-released last week, sent shares above
Sales of BlackBerry's Z10 smartphone have not matched expectations
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