BlackBerry – An Ailing Brand Facing Disaster on the Financial Metrics
The release of BlackBerry 10 was expected to bring some glory for the ailing brand. However, this maneuver did not seem to restore the lost market share of BlackBerry. The first quarter financial results for BlackBerry have appeared as a complete disaster on virtually every financial metrics. The solid ground of the company was further shaken when the headlines pointed out sales of BB10 devices. In the first quarter of 2013, the company only shipped 2.7 million BB10 devices. The subscriber base further experienced a downfall from 4 million to 72 million.
According the assessment made by Wall Street, the market value of the brand has fallen from 25.5% to 10.69% in the early trading. These numbers clearly portray the tale of BlackBerry’s inability to make a mark in the market. The figures are disappointing that clearly depicts challenges faced by the company in the market. The losses continue to increase, and the recovery almost seems to be impossible. BlackBerry has been clearly outperformed by other players in the market like Apple and Android.
However, the CEO of the company Thorsten Heins believes that the analysis should be made on a long term view, and the company needs more time to show some positive results. This news is in contrast with the statement made by Heins last month that the company is gaining grounds.
He defends the failure of the company by asking investors to have patience. He said that the company has positive plans for the coming quarters and is set to unveil new products. The company will make investments in the quarters of 2014, which will lay down the foundation for the growth next year.
Irrespective of the ventures BlackBerry is trying to bank upon, one thing is for sure only a miracle can save the company. With only 40% sales of BB10, the future of the Canadian company has been threatened leaving a gloomy path for the company to thrive on the competitive forefront.