In October 2013, CNN Money had published an article about the failing financial health of BlackBerry. A lot has changed since then. BlackBerry’s fiscal health has certainly improved and the company is eagerly looking forward to the future. Let’s see where BlackBerry stands today.
In its report, CNN Money had said that BlackBerry was incurring huge quarterly losses and that it was eating up its cash reserves rapidly. BlackBerry had laid off 4500 people in 2013 and it cost the company nearly $400 million.
Today BlackBerry is in a better financial shape. The company has ended its restructuring process and is also planning to hire some new employees in certain areas.
CNN Money certainly wasn’t expecting BlackBerry to recover. The article also had references to the company’s mounting losses. In September 2013, BlackBerry had announced a quarterly loss of $965 million. That figure included the $934 million loss for unsold BB Z10 devices which was the first smartphone to run the BB 10 operating system.
Today, Blackberry has almost stopped making losses. At BlackBerry’s most recent earnings call,CEO John Chen said that he expects BlackBerry to be a cash flow neutral company towards the end of the current financial year. Better still, market watchers have regained their faith in Blackberry’s ability to deliver. In fact, Todd Coupland, CIBC World Markets analyst, says that by the quarter ending in February 2015, BlackBerry will be cash flow positive.
Another topic that was discussed in the CNN Money article was BlackBerry’s dwindling popularity in international markets that were once loyal to the company.
Of course, CNN Money could not predict that BlackBerry would create a partnership with Foxconn and launch a new smartphone aimed at emerging international markets. The BB Z3 was sold out the very first day it launched in Indonesia.
Consumers want apps. Unfortunately BlackBerry does not have hundreds of thousands of apps designed for its OS. The company has, nonetheless, listened to consumer’s demand for more apps. When the BB 10.3 OS launches towards the end of this year, BlackBerry users will have access to the Amazon Appstore. Users can also watch films on Netflix, share their ideas on Pinterest and grab deals on Groupon. They can do all of this while still enjoying the hugely popular productivity and business apps in BlackBerry World.
When BlackBerry took longer to launch its BB 10 OS, it had angered many corporate users who wanted to deploy new BB phones and OS together. This encouraged many enterprises to start using Android and iPhone devices.
BlackBerry has certainly recognized that its enterprise users have embraced diversity. BlackBerry has done the exact same thing. Using BES10, enterprises can secure their Android and iOS devices as well as those running BlackBerry OS. BlackBerry will launch BES12 this year and it will have support for Windows Phone devices as well. In fact, BlackBerry is the one and only EMM solution which can support the diverse device approaches that enterprises want to take.
It is true that BlackBerry is going through a difficult phase, but the worse is over. The current executive team of BlackBerry has certainly taken some difficult choices required to stabilize the organization. With its array of new services and products and a solid business strategy BlackBerry is certainly looking towards the future.