A disappointing earnings report for Blackberry caused its shares to lower, despite the company’s efforts to turn the company around with the introduction of the new Blackberry 10 software and phones.
The Waterloo, Ontario-based company stated that it shipped 6.8 million smart phones in the last quarter. This is less than the 7.8 million smart phones delivered in the same period last year. Analysts had anticipated a profit of 8 cents per share, however it resulted in a loss of 13 cents per share instead, for the quarter.
Yesterday, 30 July, shares fell down by 29 percent in intra-trading trade, which accounts to the biggest loss on over a decade.
What is of concern is that no major boost was identified from its new Blackberry 10 devices, including the Z10 which was released last February and its Q10 which was released in May. Out of its new Blackberry 10 devices, the company only shipped 2.7 million, which is a number much lower than analysts had predicted beforehand.
Analysts have called the reports ‘dismal’ and ‘disappointing’, particularly when looking at the outlook for the next quarter. According to Morningstar analyst Brian Colello, Blackberry’s more disappointing news is that the next quarter indicates a loss.
CEO Thorsten Heins, who took over a year and a half ago, who has made a several changes to the company, including the change in the name of the company to Blackberry from RIM, remains positive. When commenting on the company’s earnings, Heins said that the company will continue to improve its position.
The company has now started to launch its Q5 in numerous markets. It is a lower cost Blackberry 10 phone. Heins also encouraged analysts to be patient.
However, Colello told ABC News that Blackberry got off on a terrible start, and even though the company is liquid enough to hang around for a while, he is not optimistic that they will regain their 20 percent market share soon enough.