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BlackBerry's prospects appear to be more dire than ever. Following a layoff of 40 percent of its workforce and details that it would take a $934 million charge because of unsold Z10 phones, BlackBerry has laid out even more troubling news for investors in a filing with the SEC. It's modified one of its previous loss estimates to note that it now expects to lose $400 million throughout its fiscal 2014 and its following quarter, up from the earlier estimate of $100 million. It also acknowledges that its revenue and market share have dropped significantly since the same quarter last year, including in emerging markets where it once saw quick growth.
BlackBerry 7 remains far more successful
The company's new operating system isn't off to the best start either. BlackBerry acknowledges that BB10's adoption rate has been slower than expected, though that may be an understatement: of the 5.9 million phones it sold between June and the end of August, 4.2 million were devices running BlackBerry 7 — its old OS.
BlackBerry seems to be aware of why this is happening. It pins the blame on consumers' growing preference for platforms with "access to the broadest number of applications," namely iOS and Android. It says that low-cost Android devices have been cutting into its hold on emerging markets as well, and that it's also struggling on the higher end with its go-to enterprise customers. BlackBerry notes that many companies previously required that its devices were used, but that those companies are now allowing their employees to use their own smartphone instead. While the company is struggling more than ever, it may now be on the brink of going private through a buyout offer from Fairfax Financial. It expects to hear more from Fairfax by November 4th.
Update: In order to further cut expenses, BlackBerry tells the AFP that it could choose to sell off some of its office space. It's reportedly looking to cut its expenses in half within the next three quarters, and with its recent layoffs, it's possible that the space is no longer necessary.