BlackBerry Posts $4.4B Q3 Loss

Struggling smartphone maker BlackBerry posted a $4.4 billion loss for its third quarter that ended Nov. 30. It earned $1.2 billion in revenues, a 56 percent decrease from the $2.7 billion it earned in the same period last year.

The smartphone maker has shopped for a buyer, installed new management (multiple times), and continues to shift strategies to try to fight its way out of this downward spiral. It introduced 10 new smartphones earlier this year, but now says it will “drive greater focus on services and software,” such as the BBM messaging app.

Blackberry also said it had entered into a new five-year partnership with Chinese manufacturer Foxconn. The New York Times has more on that relationship:

The arrangement seems to be a way for BlackBerry to effectively hand over some of its handset business to a Chinese company without running afoul of Canadian foreign investment laws. The government of Canada has made it clear that for national security reasons it would not allow the sale of BlackBerry or any significant portion of the company to any Chinese firm.

BlackBerry said that it would jointly develop and manufacture some phones with Foxconn in the future, including a new model aimed at the Indonesian market, and that Foxconn “will manage the inventory of those devices.” BlackBerry said that it will control all of the “intellectual property” in phones created through the partnership.

Publish date: December 20, 2013 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT