Today, Blackberry released their preliminary financial results for the second quarter of the fiscal year 2014, and it’s worse than I could have even imagined. While nobody believed BB10 would fully resurrect the once mighty smartphone company, nobody expected operating losses approaching $1 billion, either.
According to sources, Blackberry will remove itself from the consumer market, opting to focus on enterprise and end-to-end solutions instead. They’ll also trim their lineup from six devices to four, with two high-end offerings and two lower-end phones.
In addition to the operating loss of $950-995 million, the Waterloo, Canada company will also see a pre-tax inventory charge of $930-960 million, primarily attributable to Z10 devices. Blackberry did make $1.6 billion, of which half is service revenue, and expects to see revenue on 3.7 million smartphones, primarily BB7 devices.
This marks an end to Blackberry’s consumer presence, and a sad exit for a once prominent and ubiquitous company. While the enterprise market got them to where they were, programs like BYOD and Apple’s increasingly strong presence in enterprise will prove difficult. Google is also pushing hard, and has many top-tier companies “going Google”. Blackberry may find sourcing contracts for enterprise or government difficult in the current landscape.
Are you sad to see it go, or have you moved on? Let me know in the comment section!