Once known as the world’s most pioneering smartphone, Blackberry has announced that it has experienced its lowest quarterly sales since 2007.
Having announced revenues of $660m in the final three months of its fiscal year, Blackberry has experienced close to a 20 percent revenue drop since the same fiscal period last year.
Despite the large drop in quarterly sales, John Chen, BlackBerry chief executive, stated that, the company still managed to beat expected earnings, reporting an adjusted profit of $20m or 4 cents a share.
According to the reported call with analysts, Chen remains confident that the future for BlackBerry is bright, “The financial house is in order. This is an important message that I need the customers to embrace” said Chen.
Regardless of Chen’s confidence, there remains an air of speculation with Maynard Um, analyst at Wells Fargo, suggesting that BlackBerry “does not appear to be showing signs of a clear ramp yet, which is likely to be viewed as disappointing.”
What do you think could be reason for this drop in sales?