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BlackBerry Posts $4.4 Billion Loss, Will Outsource To Foxconn
iONiUM writes "Today BlackBerry announced a $4.4 billion loss, and a deal with Foxconn to outsource hardware manufacturing. One interesting stat is that 75% of sales were actually older BB7 devices. That said, CEO John Chen says, 'We are very much alive, thank you.' He adds, 'Our "for sale" sign has been taken down and we are here to stay. BlackBerry recently announced it has entered into an agreement to receive a strategic investment from Fairfax Financial and other institutional investors, which represents a vote of confidence in the future of BlackBerry.'"
'Our "for sale" sign has been taken down and we are here to stay.'
This is the textbook precursor words before a "transition team" chops it up for parts and sells everything off piecemeal. It's right in the MBA manual.
Is it just my observation, or are there way too many stupid people in the world?
Engineering is dead. Once the service economy of the U.S.A. implodes, so will these job.
American engineering is very much alive. The same can't be said for high tech manufacturing.
...then license your tablet and phone OS immediately.
The tablet OS never, ever crashes, runs any Gingerbread app, and is a far superior experience to Android. Blackberry should give the OS away for free for any tablet that has CPUs under 1ghz (as long as the vendor writes the drivers).
The phone OS builds on the tablet, will load any .APK, runs other vendors' market apps, and is judged a far, far superior experience by Android converts. Blackberry should give the phone OS away to any vendor running CPUs under 800Mhz (as long as the vendor writes the drivers).
If Blackberry takes market share, it will win. This cannot be done as a vertically-integrated platform.
This $4.4B loss is one of those "throw everything out including the kitchen sink" financial quarters, where a struggling, money-losing public company tries to purge itself and basically write everything off at once, including expenses/charges that may not have happened yet. The purpose of this financial engineering is partly to make future earnings look better, both on a comparable basis but more importantly because so many expenses got thrown into the loss and so future revenue will have fewer expenses charged against it, giving the appearance of an earnings recovery. The stock is heavily shorted by smart money and they know this large "loss" is guaranteed result in future positive earnings "surprises" so they'd rather take their short earnings off the table and let the dumb money fight it out in the intermediate term.