Blackberry (formerly "Research In Motion")

[CityFarmer]

It doesn't sound good for Blackberry...

BlackBerry may cut 40% of jobs

TORONTO-- Struggling smartphone maker BlackBerry could cut its workforce by up to 40 per cent by the end of the year, media reports said on Thursday, even as the company launched a flagship smartphone intended to revive its fortunes.

The layoffs will cut across all departments and will occur in waves, likely affecting several thousand employees, the reports cited industry insiders as saying. BlackBerry had 12,700 employees as of end-March, down from more than 17,000 two years ago.

“Clearly the game is over for them, though it’s coming a little quicker than I expected,” said Charter Equity analyst Edward Snyder. “Cutting half your staff, that’s pretty much the end for them.”
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http://www.todayonline.com/business/blac...ut-40-jobs

[CityFarmer]

Likely the last chance for the company for survival...

BBM for Android and iOS to launch this weekend

LONDON — BlackBerry has announced that its popular instant messaging service BlackBerry Messenger (BBM) will be available on Android from Sept 21 and iOS from Sept 22, according to the Daily Telegraph.

Previously exclusive to BlackBerry smartphones, BBM will be available as a free download in Google Play and the App Store. Customers will also be able to download BBM by visiting www.BBM.com from their smartphone browser.

BBM runs in the background and is always on, meaning that messages on BBM are typically delivered and read within seconds. It also keeps a record of messages that have been delivered and read, and uses a PIN to keep contacts and information secure.

“BBM is a very engaging messaging service that is simple to use, easy to personalise and has an immediacy that is necessary for mobile communications,” said Mr Andrew Bocking, Executive Vice President for BBM at BlackBerry.

“With more than a billion Android, iOS, and BlackBerry smartphones in the market, and no dominant mobile messaging platform, this is absolutely the right time to bring BBM to Android and iPhone customers.”

Android and iPhone users who download the BBM app will be able to carry out both one-on-one and group text chats, and share files such as photos and voice notes instantly. They will also be able to send a message to all of their BBM contacts in one go using the ‘Broadcast Message’ function.

BBM will be available as a free download for Android smartphones running Ice Cream Sandwich and Jelly Bean beginning at 7pm on Sept 21. BBM for iPhones running iOS 6 and iOS 7 will become available for each market on the App Store schedule of 7.01pm on Sept 22.
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http://www.todayonline.com/tech/bbm-andr...ch-weekend

[CityFarmer]

Time seems running out for the company...

BlackBerry warns of big loss, 4,500 job cuts

TORONTO — BlackBerry warned yesterday (Sept 20) that it expects to report a huge quarterly operating loss next week and that it will cut more than a third of its global workforce, rekindling fears of the company’s demise and sending its shares into a tailspin.

The company, which has struggled to claw back market share from the likes of Apple’s iPhone and Samsung Electronics’s Galaxy phones, said it expects to report a net operating loss of between US$950 million (S$1.2 billion) and US$995 million in the quarter ended Aug 31, due to writedowns and other factors.

The results will put more pressure on BlackBerry to find a buyer for either some parts of the company, or for all of it. It said last month it is weighing its options, including an outright sale, in the face of persistently lacklustre sales of its new smartphones, which run on the BlackBerry 10 operating system.

“The company has sailed off a cliff,” said BGC Partners analyst Colin Gillis. “What do you expect when you announce you’re up for sale? Who wants to commit to a platform that could possibly be shut down?”

BlackBerry’s Toronto-listed shares fell as much as 23.7 per cent to CUS$8.25 yesterday, their lowest this year, before closing down 16 per cent at CUS$9.08. The company’s Nasdaq-listed shares ended 17 per cent lower at US$8.73, after falling as low as US$8.01.
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http://www.todayonline.com/tech/blackber...0-job-cuts

[freedom]

BlackBerry need replace all its current C*Os. They are a bunch of morons. How could such a small company write down so much inventory, the same size of Microsoft wrote down its Surface inventory.

Workforce cut is necessary. Actually, they are not cutting enough. Maybe another few thousand should go. They can only sell a few million devices a quarter. They don't need so many employees, just better sale professionals. Outsource and temporary workers should be the way.

[CityFarmer]

BlackBerry need replace all its current C*Os. They are a bunch of morons. How could such a small company write down so much inventory, the same size of Microsoft wrote down its Surface inventory.

Workforce cut is necessary. Actually, they are not cutting enough. Maybe another few thousand should go. They can only sell a few million devices a quarter. They don't need so many employees, just better sale professionals. Outsource and temporary workers should be the way.

The write-down is mainly due to the BlackBerry Z10 inventory, which the company had bet for its future, but lost badly.

[specuvestor]

We had discussed about this earlier this year. Another case study of how one loses competitiveness, especially in the fast moving tech world.

I might be stating the obvious but this is the last chance for Blackberry to execute as a viable third alternative. Unlike Nokia or Motorola or Sony they actually have a credible inhouse OS.

Crackberry comparative advantage was secure push email back when windows mobile email was utterly unusable, and the familiar qwerty keyboard, which ushered in era of phones with slide out keyboards. Like Palm they have rested on their laurels too long while the world passed them by. Now's a question of whether they could lean back on their corporate users base and strengthen their comparative advantage rather than make another smartphone wannabe, just as Apple leaned back on the education market and the loyal followers. Unfortunately I have a feeling that the current management don't get it.

Incidentally OS 10 was also the game changer for Apple: what is now known as OS X based on NeXT

[CityFarmer]

Life is tough for BlackBerry's CEO...

BlackBerry move away from consumers unlikely to stem decline

TORONTO — BlackBerry’s plan to retreat from the consumer market in favour of its traditional strength serving businesses and governments is widely seen as a desperate move that industry watchers warn will only accelerate its downward spiral.

The strategic shift and dramatic restructuring are fuelling fears about BlackBerry’s long-term viability. The uncertainty created could easily push a growing number of its telecom partners, business customers and consumers to abandon the platform.

“Perception is nine tenths of reality and if customer and supplier confidence continues to fall it doesn’t matter how much cash they have on the balance sheet. Things could get worse,” said GMP Securities analyst Deepak Kaushal.

The Canadian smartphone maker, once the leader in wireless email, announced the change in focus on Friday (Sept 20) afternoon when it also said it will report a quarterly loss of close to US$1 billion (S$1.3 billion) and slash more than a third of its workforce.
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http://www.todayonline.com/world/blackbe...em-decline

[CityFarmer]

The end for BlackBerry as listed company. Shareholders will get back US$9 per share, not too bad, with the bleeding situation, IMO

BlackBerry agrees to sell itself for S$5.9b

TORONTO — BlackBerry has agreed to sell itself for US$4.7 billion (S$5.9 billion) to a group led by largest shareholder, Fairfax Financial Holdings.

BlackBerry said yesterday (Sept 23) that a letter of intent has been signed and its shareholders will receive US$9 in cash for each share.

Fairfax head Prem Watsa is a former board member who owns 10 per cent of BlackBerry. Mr Watsa stepped down when BlackBerry announced it was considering a sale last month.

Mr Watsa is one of Canada’s best-known value investors and the billionaire founder of Fairfax. He has been compared to Warren Buffett because of his investing approach. BlackBerry founder Mike Lazaridis recruited Mr Watsa to join the company’s board when Mr Lazaridis and Mr Jim Balsillie stepped aside as its co-CEOs in January last year.

Trading of the company’s stock was halted ahead of the news. BlackBerry shares plunged after the company announced Friday a loss of nearly US$1 billion and layoffs of 4,500 workers.
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http://www.todayonline.com/business/blac...tself-s59b

[specuvestor]

IMHO it's a great outcome for BB shareholders... not so sure about Fairfax shareholders

[Wildreamz]

Blackberry is a good lesson on how intensive competition can destroy returns in even the fastest growing industry.