Following the announcement of its massive continued losses in the third quarter, the company hopes to get better.
Following extremely bad handset sales that have caused losses that were far worse than predicted, a BlackBerry recovery plan is now well in the works and the company is hopeful that it will be able to form a much brighter future for itself.
The handsets had once been the leaders in the market and have recently rapidly fallen off the map.
The third quarter losses reported by the company for its third quarter of 2013 were recently reported, revealing that the company had lost $4.4 million. The primary reason for this was that the manufacturer had shipped only 1.9 million smartphones within that quarter, when compared to the second quarter, in which 3.7 million had shipped. Comparatively speaking, in 2011, there had been 14.2 million of the handsets shipped during the third quarter. Clearly, if the company intends to continue, a serious BlackBerry recovery plan is required.
The BlackBerry recovery plan will need to make up for losses of $0.67 per share on $1.2 billion in revenue.
The entire year for the handset manufacturer has been a troubled ones. It started with the launch of its brand new Q10 smartphone, which had been long awaited, particularly as it was the first to feature the new BB10 operating system. That was completely disastrous as the device proved entirely unpopular, as did the Z10 handset that followed.
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Since September, the company has been slashing away at its workforce in order to compensate for the massive financial losses. It has removed 40 percent of its workforce, worldwide, after having cut away 4,500 jobs. More recently, the CEO of the company was replaced when John Chen stepped into the role.
Now it looks as though the BlackBerry recovery plan is set on rapidly growing marketplaces. This was made clearer as the company entered into a five year contract with Foxconn, the largest electronics manufacturer in the world. This agreement has been made in the hopes of reversing the company’s decline by making the devices available in areas such as Indonesia, as the handsets will be manufactured there and in Foxconn’s Mexico location. BlackBerry will be holding onto all ownership of its intellectual property.