It is reported that Blackberry faces a $965 million loss for the second quarter ending on 31 August. The 49% revenue decrease makes the CEO and investors disappointed. After reviewing the managerial and financial accounting reports, the CEO says he is very disappointed. The sharp fall of Blackberry revenue may be caused by switch of customers to Apple once it launches its smartphones. The company’s operational reports, which focus on internal situation of the business, make CEO think about transition. The financial reports indicate a loss. In my perspectives, it has negative effects on investors’ confidence but some investors can buy more shares as the share price is decreasing. Therefore, investors can read the financial reports to get information about the company that if it is worth investing, because financial reports focus on the future. The high competition level in cell phone market makes it difficult for Blackberry to expand its market share. As a result, the business should have a very clear value proposition and market segment, to avoid failure in direct competition with iPhones.

Resources: http://www.telegraph.co.uk/technology/blackberry/10339283/BlackBerry-plunges-to-1bn-loss.html