According to Kevin Smithen, an analyst from Macquarie Group, BlackBerry Ltd already lost its capability to pass through the consumers' market. BlackBerry's unit sales would not be boosted since the company's customer base was no longer enough to boost it. Smithen added that BlackBerry's last option would be liquidation or breakup.
Scott Thompson, FBR Capital Markets' analyst, stated that BlackBerry's management underestimated its problems. Analysts blamed the cost cutting measures at companies but they said BlackBerry must find ways to cope up. Its BlackBerry 10 operating system failed to run as well as anticipated.
BlackBerry's CEO Thorsten Heins reiterated that it would take some time to turnaround. However, the company's first quarter earnings showed no evidence at all about the said turnaround. BlackBerry's share in the smartphone market in the US fell from 2010's 43% to May 2012's less than 4.8%. The company's subscribers also declined from 76 million to 71 million.
Many corporations decided to launch a project called bring your own device so that they could cut costs. Also, using other mobile phones would allow the companies to save more by not paying for BlackBerry's software. This further plunged the sales of BlackBerry units.
Join the Conversation