BlackBerry Ltd announced their preliminary second quarter fiscal 2014 results on Friday, and the results are no surprise to most in the mobile market. The results show a clear loss (operating loss of $950 million) for Blackberry as well as a workforce reduction of over one-third. This is certainly not going to inject confidence in the brand. Blackberry’s woes have been piling up as mobile competitors Apple and Google continue to swallow the mobile market leaving very little meat on the bone for Blackberry to gain any kind of ground. All these compiling problems have pushed Blackberry to consider selling the company outright.
“The company has sailed off a cliff,” said BGC Partners analyst Colin Gillis. “What do you expect when you announce you’re up for sale? Who wants to commit to a platform that could possibly be shut down?”
Reuters reports, “The company said it plans to shave its operating costs by some 50 percent over the next nine months, as it aims to focus its attention on the enterprise market and become a more niche player. But some analysts are skeptical that the company can cut its way back to prosperity.” But, is heading back into the niche enterprise market (a place Blackberry used to excel) enough to save the struggling company? Apple has already made inroads into the very same market. Will enterprise business get back on a sinking ship in hopes that the flooding can be controlled and the ship saved?
“We believe the most likely outcome is a break-up or sale in total or in parts,” said UBS analyst Amitabh Passi.
One thing is certain, while Apple and Google continue to pour buckets of water into the sinking ship that is Blackberry, Blackberry is furiously trying to pump the water out to keep the ship floating. What do you think? What will it take for Blackberry to fix the sinking ship? Do they have a chance? Let me know your thoughts in the comments below or over on Google+. For more on this story check out the Blackberry press release below and Reuters report.