28 Jun BlackBerry suffers $84M loss on disappointing Q1 smartphone sales
BlackBerry shipped 6.8 million smartphones and recorded a $84 million loss during the three months to June 1, as it struggles to turn around its fortunes.
The first of BlackBerry’s fiscal year was the first true referendum on how the new BlackBerry 10 smartphones have been received by consumers and business users — although the company didn’t break out sales figures for those phones.[ Also on InfoWorld: BlackBerry Q10 review: You’ll either love it or hate it. | Get expert advice about planning and implementing your BYOD strategy with InfoWorld’s 29-page “Mobile and BYOD Deep Dive” PDF special report. | Keep up on key mobile developments and insights with the Mobilize newsletter. ]
In total, BlackBerry shipped 6.8 million smartphones in the quarter, the company said Friday as it released its quarterly earnings, disappointing analysts. Shipments of 7.7 million phones would have been an “OK” result, according to IDC’s Francisco Jeronimo.
BlackBerry reported revenue of $3.1 billion, up 9 percent from the same period a year earlier. Net loss from continuing operations for the quarter was $84 million, compared to a net loss of $510 million a year earlier.
BlackBerry’s OSes had a 2.9 percent market share during the first three months of the calendar year, compared to 6.4 percent during the same period in 2012. To grow sales, BlackBerry has to do a couple of things.
“It needs strong campaigns to drive awareness of the new platform and user experience; new devices at lower price points, and to refocus on the enterprise segment where they still have a chance. The consumer segment is lost and the only chance is on the enterprise segment, particularly the large enterprises,” Jeronimo said.
The smartphone market remains highly competitive, making it difficult to estimate units, revenue and levels of profitability, according to BlackBerry.