Blackberry reports $965 million second quarter loss
by khrychev
Blackberry released it new phone Z10 in January, to compete with Apple’s iPhone. The company was hoping to take some market share, they failed, however, leading to a huge loss. Blackberry now has little choice but to accept buyout offers. The article says that a consortium led by Fairfax Financial is the likely buyer, but Blackberry is till considering other offers.
In my opinion Blackberry’s release of the Z10 was a bad decision as the phone market is flooded with iPhone analogs, like the Samsung Galaxy, the HTC, and others. The Z10 and most of Blackberry’s iPhone look alikes were released to late compete with the popular iPhone. Although Blackberry’s phone was slightly cheaper than the iPhone, that was not enough to overcome the iPhones momentum. My theory is that Blackberry spent too much money on research and development to back out of release. Blackberry now has too many losses and no choice but to be bought out.
See the article: http://www.bbc.co.uk/news/business-24302139