What Are Analysts Saying After BlackBerry’s Announcement?
It appears as though it’s the beginning of the end for BlackBerry (NASDAQ:BBRY) which announced on Friday it expects to report a quarterly loss of nearly $1 billion next week while laying off 4,500 employees — or 40 percent of its workforce. The $1 billion loss is mainly the result of a write-off for unsold BlackBerry phones along with the associated fees necessary to stop manufacturers and suppliers from adding to the surplus.
Thorsten Heins, President and CEO of BlackBerry, wrote it a statement: ”Going forward, we plan to refocus our offering on our end-to-end solution of hardware, software and services for enterprises and the productive, professional end user… This puts us squarely on target with the customers that helped build BlackBerry into the leading brand today for enterprise security, manageability and reliability.”
But analysts were not nearly as forgiving in their outlook for the troubled smartphone maker. “It’s obviously a disaster. They’re pre-announcing half the revenue the street expected this quarter,” Ryan Cram, an analyst at Charter Equity Research, explained. ”Android is cleaning up in the emerging markets space. Samsung is just eating everybody’s lunch. Everybody who’s run into trouble has tried to revive their brand. It’s been nearly impossible.”