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BlackBerry blasts lousy Z10 smartphone sales as Q2 losses top $900m

BlackBerry has posted its second quarter financial figures, and they do not read well.

The beleaguered Canadian smartphone manufacturer has reported losses of $935 million (£580 million), which it has blamed on extremely poor uptake of the Z10. In a move that echoes Microsoft's handling of the Surface RT, the firm had to spend heavily on inventory charges related to that particular handset.

BlackBerry managed to sell a measly 3.7 million smartphones during the three-month period. To put this into context, Apple managed to shift nine million iPhone 5S and 5C smartphones in one weekend.

Sales for quarter two stand at $1.6 billion (£993 million), representing a 45 per cent decrease from the same period last year, and a 49 per cent drop from quarter one.

"We are very disappointed with our operational and financial results this quarter and have announced a series of major changes to address the competitive hardware environment and our cost structure," said BlackBerry CEO Thorsten Heins.

The company is currently going through a period of transition, and recently signed a $4.7 billion takeover deal with a Canadian consortium headed by Fairfax Financial.

"We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company with $2.6 billion in cash and no debt," continued Heins.

"We are focused on our targeted markets, and are committed to completing our transition quickly in order to establish a more focused and efficient company."