Disappointing quarter for Blackberry (NASDAQ:BBRY)


Boston, MA, 06/28/2013 (financialstrend) – BlackBerry (NASDAQ:BBRY) is trading currently at $10.77 after moving 25.55% ($3.70) southwards. The intraday range of the stock is $10.25-$10.98. About 111.72 million shares are traded till now and 22.18 million shares are traded on an average in 30 days.

Despite releasing the new make or break smart phones this year, the shares of BlackBerry plunged about 30%. This happened after the company warned of future losses and posted a loss.

The new ‘Blackberry 10 Operating System’ of the company is there in very few phones. The sales of OS are not good. Last year, the company sold about 7.8 million phones while it sold 6.8 million phones overall this year, which also includes older models. Its new ‘Blackberry 10 operating system’ was critical for the company’s comeback, but the company is anticipating an operating loss in the second quarter, too.

An analyst with Canaccord Genuity, Mike Walkley, said that it is pretty clear that the new OS has not turned the company around in an extremely competitive smart phone market. Thorsten Heins, the chief executive said on a conference call that “transition takes time” and that the things are better as compared to last year when they were told that the company is finished. He noted that the highly competitive smart phone market makes it hard to estimate the levels of profitability and revenue.

The company also announced that it is going to stop developing the new versions of the Playbook, its slow-selling tablet computer. Heins said that the company has spent a great deal of energy and time looking at solutions that can help to move the new operating system to PlayBook but unfortunately, he was not contended with the level of user experience and performance, so he made a difficult decision of ceasing these efforts and focusing on their core hardware portfolio.