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Critical Analysis Paper

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Submitted By dearlum
Words 834
Pages 4
Chulin Deng
BA 3103
Critical Analysis Paper 1

According to the article “BlackBerry Posts Loss as Phones Go Unsold”, BlackBerry performs a poor performance. Business has a quarterly loss in 2013 for $965 million. The revenue had drop 45% that down to $1.57 billion from $2.86 billion compares with a year earlier. BlackBerry lost $248 million, or 47 cents a share, and analysts forecast 49 cents a share loss for the quarter ended August 31. The net loss is $235 million which excluding inventory charge and restructuring charges in the latest quarter. The cash position also down to $2.6 billion from $3.1 billion at quarter-end. Smartphone maker report a hefty operating loss of nearly $1 billion charge on inventory of unsold phones. Fairfax Financial Holdings to take the company private for about $4.7 billion, or $9 a share. As a former mobile king, BlackBerry faces to exit the handset business. This report will conduct a situation analysis of potential causes of declining sales and profits of Black Berry. And also would identify internal company and external environment for the poor performance. A particular reason of the sales declining is BlackBerry cannot satisfy enough to the market and product demand for customers. Sales declining imply to revenues declining. BlackBerry recognized most phone’s revenue is from the older models, which means the new phones are not much attract to customers. Ian Austen (2013) noted that BlackBerry could soon be leaving the business of making phones—leaving fewer options for a vocal minority still committed to phones with its once popular physical keyboard. (para. 1) BlackBerry usually produces the keyboard models, but with people’s pursuit on phone, most smartphone users prefer to use touch-screen models instead of the physical keyboards. Keyboard was one of a special characteristic of BlackBerry, eventually, that become an

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