Is this the end of Blackberry or a new beginning?
The demise of Blackberry has been slow and painful and today BlackBerry reported a $4.4 billion loss and a 56 percent drop in revenue for its third quarter. In addition to this the Canadian manufacturer announced it would step back from its once-core handset business through a 5 year partnership with electronic parts manufacturer Foxconn. So is this the end of Blackberry or just a new beginning?
The partnership with Foxconn demonstrates that they are committed to manufacturing devices as opposed to focusing only on software development as many thought they might head. As a result Blackberry should get access to resources that can build devices that cost them less. It is interesting to note that Foxconn is also a major supplier to Apple.
The news is that we should expect to see some new handsets next year that will be targeted towards developing markets with Indonesia being their first area of focus. The first Foxconn/Blackberry Smartphone is planned to go on sale in Indonesia in March or April next year.
Despite the loss Investors were positive with shares in the Toronto-listed company rising by as much as 17 per cent to C$7.84 in early morning trading. It seems that the loss is seen by investors as a result of the management clean-up activities and they should now expect to see more positive financial returns next year.
So they are not dead and it is too early to tell if this new partnership and a focus on developing markets is a new beginning. What is clear is that they are still battling hard.