Blackberry to abandon consumer market as it makes $125 Million loss
Blackberry announced a big loss today after it emerged that its consumer phones had taken a pounding by the new iPhone and other smartphones in the market. RIM have said that they will now focus on business rather than the consumer market which is a sign that they have given up becoming a big player in the consumer mobile world.
‘We plan to refocus on the enterprise business and capitalise on our leading position in this segment,’ CEO Thorsten Heins said.
‘We believe that BlackBerry cannot succeed if we tried to be everybody’s darling and all things to all people. Therefore, we plan to build on our strength.’
There is also a huge board room shake up as former c-CEO Jim Balsille resigned from the board along with Jon Rowan who was the Chief operating officer for global operations and David Yach chief technology officer for software.
Blackberry also tried to launch a tablet that was unsuccessful and these latest quarter figures show that something needed to be done to heal the gaping wound.
The net loss was $125million, or 24 cents a share, in the quarter that ended on March 3. This compares with $934million, or $1.78 per share, a year ago. Revenue fell 25 per cent to $4.2billion from $5.6billion. Analysts were expecting $4.54billion. SOURCE