Forgot your password?

SEC Filing Shows BlackBerry Struggling in Emerging Markets

Update: Thanks Chris for pointing out that this was not delayed and BlackBerry regularly releases these results a few days later.

BlackBerry Q10 Z10

BlackBerry did their financial announcements in stages this quarter. First they canceled their investor call and the Q&A. The NY Times noticed that BlackBerry has now filed the remainder of the SEC requirements detailing some of what has been ailing the companies sales. Specifically it seems like BlackBerry is getting some serious competition in emerging markets in the developing world. They also are saying that even though people are installing BES 10 not as large of a portion as expected are purchasing the licenses.

Here are some relevant portions of the filing:

The Company has continued to encounter challenges with the BYOD trend. The Company also believes that uncertainty surrounding its ongoing strategic review process may have negatively impacted demand for the Company’s products in the second quarter of fiscal 2014. Going forward, the Company plans to refocus its product and services offerings on its end-to-end solution of hardware, software and services for enterprises and prosumers.

The smartphone market is maturing, resulting in lower growth rates, particularly in the higher-end segment of the market. The Company has experienced a decline in demand for its products and in its overall market share. The intense competition impacting the Company’s financial and operational results that previously affected demand in the United States market is now being experienced globally, including in international markets where the Company has historically experienced rapid growth. The increase in competition encountered by the Company in international markets is due to the recent entry into those markets of global competitors offering high end devices that compete with the Company’s BlackBerry 10 devices, as well as other competitors targeting those markets with lower end Android-based devices that compete with the Company’s lower cost devices. The decline can also be attributed to consumer preferences for devices with access to the broadest number of applications, such as those available in the iOS and Android environments. See “Results of Continuing Operations – Three months ended August 31, 2013 compared to three months ended September 1, 2012 – Revenue – Revenue by Geography”. The Company has also experienced a continued decline in service revenues

Its interesting to see BlackBerry specifically call out low priced Android devices along with iOS and Android having more applications. Check out the full PDF filing here.

1 comment on this postSubmit your comment!
  1. That’s not surprising. It should have been expected. Apple now has iMessage, which, for all intents and purposes, also offers secure messaging. iMessage doesn’t have all the features or social power of BBM but some naive folks think it’s the same. For most, it will appear to be the same. WhatsApp also provides messaging like BBM, so the cheaper Android devices from China and elsewhere.
    Bad press about BlackBerry is hurting them a GREAT DEAL everywhere you go. Comedians all over are taking pot shots at BlackBerry. This is hurting the brand name.
    Prem’s purchasing and privatization of BlackBerry is key to protecting its future. They need to quiet down the noise and start refocusing and rebuilding their image.

BlackBerry© is a registered Trademark of BlackBerry Limited. BerryReview is in no way affiliated with BlackBerry Limited though sometimes their lawyers send us love letters...

Copyright © 2007-‘2016’ BerryReview LLC