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article imageSlow BlackBerry 10 sales & overall losses cause stocks to tumble

By Jessica Zuzierla     Jun 29, 2013 in Business
BlackBerry reported losses in the first fiscal quarter, and expects second quarter losses, which caused stocks to tumble 28 percent on Friday leading to a $2 billion loss overall and CEO Heins to cancel the company's PlayBook BB 10 update.
BlackBerry 10 was supposed to be the comeback of a lifetime for BlackBerry (formerly Research In Motion (RIM). Unfortunately for RIM, consumers don’t see it that way. A ZDNet report notes that BlackBerry not only reports fewer shipments of new BlackBerry 10 than expected, but that RIM reported larger than expected losses as well.
BlackBerry 10 projections
An ABC News report states that Thorsten Heins, BlackBerry’s newest CEO, is “optimistic” about the changes he has made to the company and the direction that the devices have taken since taking over. This is despite the losses reported in the first fiscal quarter, the expected projected losses in the second quarter, and the overall losses in the last year. ABC News also reported that Heins stated that he is,
“Confident in the future of BlackBerry 10 and we have lots of new products to be built."
However, the new BlackBerry 10 products are not selling as well as Heins had hoped, a ZDNet report states. BlackBerry reports that RIM has sold more of its older devices with BlackBerry 10 installed than they have new devices with BlackBerry 10 installed. ZDnet speculates that the lack of a physical keyboard is the reason. With the exception of two recent devices, the “traditional” BlackBerry offers its users a physical keyboard, and the keyboard is the one attribute that has kept BlackBerry popular with both its enterprise and non-enterprise clientele.
BlackBerry’s story in numbers
The BlackBerry Z10 featuring BlackBerry 10
The BlackBerry Z10 featuring BlackBerry 10
Courtesy BlackBerry Media Gallery
BlackBerry’s market share is looking just as bad as the company’s sales figures. While BlackBerry reports an overall jump in the number of smartphone devices sold this year so far, Fierce Wireless reports that BlackBerry sold only 2.7 million devices with BlackBerry 10 this year.
Additionally, more than 4 million subscribers have bailed on the company, leaving it with only 72 million loyal fans, says the report, a loss that has caused Heins to cancel any plans for a BlackBerry 10 update to the PlayBook, since its sales are also down.
Fierce Wireless also reports that Heins stated that enterprise clients are adopting the new platform quickly, and that the company is still in the middle of BlackBerry 10’s enterprise launch .
According to another ZDNet report, the ICN reported that Google’s Android operating system holds 75 percent of the smartphone market share – a 79 percent gain over the last year. Apple holds 17.3 percent, which is a 6.6 percent gain over the last year, and Windows Phone holds 3.2 percent, which is a 133 percent gain over the last year. BlackBerry, on the other hand holds only 2.9 percent, which is a 39 percent loss over the last year, when the company held 6.9 percent, beating out Windows Phone at the time.
Losses cause stocks to tumble
The percentage points that BlackBerry has lost translates to a loss in stock share prices. While CNet reports. that the first quarter loss of $84 million translates to a new loss of roughly $0.16 per share, the Wall Street Journal reports that shares fell 28 percent on Friday, for a closing price of $10.42, and a $2 billion total market value loss.
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