Kamil Khan's Sauder Blog

Does Marvin Pearlstein’s lawsuit signal the death of Blackberry?

Blackberry released troubling news on September 20th when they announced that they will “have to write down between $930 million and $960 million US related to unsold BlackBerry 10 devices.” This press release comes in harsh contrast to what they have been telling the public last year, when they stated that the company was “progressing on its financial and operational commitments.” The announcement caused Blackberry stock prices to stumble 24% between September 20th and September 26th.

Now Blackberry has another issue to deal with. Marvin Pearlstein Blackberry shareholder filed a lawsuit against the company, claiming that Blackberry mislead investors about Blackberry 10’s prospects in attempts to increase stock prices.

The lawsuit comes after Blackberry had to lay off close to 40% of it’s employees, and being in the talks with selling parts, or even all, of it’s intellectual properties to other technology giants. While the lawsuit may not be the nail in Blackberry’s coffin, it may perhaps be the Grim Reaper knocking on it’s door.

Lack of revenue combined with Skytrain expansions spells disaster for Translink

Translink is in hot water. Amidst growing concerns of managerial issues, infrastructural expansion, rising transit fares, Translink recently disclosed that estimates it’ll be losing $30 million in 2014.  CEO Ian Jarvis claims that Translink’s $1.3 billion operational budget is too small to satisfy the growing public’s transpirational needs. Jarvis argues that government funding, which makes up 55% of Translink revenue, must be increased to maintain employee’s government compensation guidelines. It is currently estimated that fuel taxes, which account for  27% of Translink’s revenue, will decrease in 2016. A referendum on government funding is currently in the talks. In attempts to rebalance it’s budget, Translink has announced that it seeks to once again increase bus fares in 2015, claiming “[we] don’t believe we can save our way to expansion.”

Perhaps instead of complaining of a lack of  government funding, Translink should focus on limiting it’s spending, raising fares, and addressing ‘gate-jumpers’. While it’s Compass card system is aimed at doing just that, it might be too little too late, as growing public demand it being met with Translink’s inability to supply to general populace with satisfactory public transportation.

Apple has promised to produce more Mac computers in the United States of America

In the midst of growing controversy regarding offshore working conditions and the loss of American manufacturing jobs, Apple has announced that it is planning to manufacture it’s popular Mac computers in the USA. While many argue as to whether or not this move is political or economical, it has demonstrated that Apple is still committed to addressing the humanitarian issues which have arisen at Foxconn. Apple’s prepared to invest $100 million to develop it’s manufacturing facilities in the USA; a cost necessary to, in Tim Cook’s words, live up to their “responsibility to create jobs.”

Apple’s bold move reassures all of it’s stakeholders (customers, employees, suppliers, financiers, and communities), that moving a portion of it’s manufacturing plants to the USA, in addition to improving working conditions in Foxconn, will help expand and improve working conditions of it’s employees. Through the use of automation in it’s factories, Apple will still be able to maintain it’s cost efficiency in American production plants, despite higher worker wages. This move has allowed Apple to promise low operational costs to it’s financiers, while benefiting local communities through job creation, and a commitment to improve working conditions for all of it’s employees.