June 28, 2013

Blackberry shares take nosedive

Shares in Blackberry have seen a huge drop in value since the firm confirmed that it experienced a significant loss in the three months to 1 June this year.

The smartphone manufacturer reported losses of $84 million (£55 million), which was substantially better than the $518 million loss recorded in the same period last year but still much worse than analysts had forecast. Shares dropped by 28 per cent in early New York trading.

Analysts were keen to find out more details about how the company's Z10 smartphone performed as this was the first quarter that the handset had been available for sale in the US. However, Blackberry only revealed that shipments of new smartphones had increased but didn't confirm how many new handsets running the BB10 OS were sold.

Brian Colello, an analyst with Morningstar, spoke to the BBC about the figures: “It doesn't bode well for the initial Blackberry 10 launch, particularly the Z10. But even the outlook for a second quarter loss doesn't bode well for the Q10 either.”

Blackberry has seen its share of the smartphone market tumble over the past few years as consumers have tended to move towards iPhones and Samsung Galaxy handsets.

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Filed Under: Mobile Handset News

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