BlackBerry Burns Nearly A Billion In Q2, Lays Blame On Z10

BlackBerry is not a company that seems to be safe to invest in at the moment, as we have heard that it might actually lose its manufacturing partner, not to mention T-Mobile recently announcing that they will no longer carry BlackBerry devices in their stores. Well, to add insult to injury, it has been reported that BlackBerry has reported a $935 million hit in Q2, with them planting the blame on what is deemed as a “Z10 Inventory Charge”. In plain English, that would mean a loss associated with creating a stock of flagship handsets which eventually did not do well in the market – at all.

This is somewhat reminiscent of Microsoft’s write-down that was attributed to unsold Surface RT inventory, and this particular loss alone by BlackBerry did enough damage to wipe out most of the company’s quarterly revenue of $1.6 billion. When you throw in additional loss because of corporate restructuring, it ends up with a final loss for BlackBerry of $965 million. BlackBerry CEO Thorsten Heins claims that he’s “very disappointed” with the results, which I am quite sure anyone in his position would be, too. Do you think that the upcoming BlackBerry Z30 will be able to sell well enough to help move the company into positive financial territory?

Edwin Kee
Categories: Cellphones
Tags: BlackBerry