Blackberry Sales Fall 64%: BB10 Operating System Adoption Struggling Against iPhone and Android Phone Domination

By Matthew Buzzi , Updated Mar 28, 2014 01:17 PM EDT
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Blackberry may have formerly been the go-to brand for smart devices, but they've continually seen their percentage of users fall as Android and iPhone increasingly dominate the market. The company's revenue fell 64% from last year and it posted a $423 million fiscal fourth-quarter loss.

That revenue loss represents 86 cents per share, and a swing from a profit of $98 million from a year ago. Further troubling the company is that, of the 3.4 million BlackBerrys sold to customers in the fiscal fourth quarter, only 1.1 million were running the new BlackBerry 10 operating system.

Not having customers using your newest software is troubling for companies trying to push their product, as Microsoft can attest to as it tries to get people moving to Windows 8, including people still using Windows XP, which it is done supporting entirely. BlackBerry's older BlackBerry 7 software is still popular, especially in emerging markets.

The company is refocusing its efforts and hopes to turn profitable by 2016, however. They've brought in a new management team, cut costs, and are moving to protect its user base in emerging markets. They are doubling their efforts on selling their phones and services to government and business clients, as well. Blackberry is also a quarter ahead of their schedule to lower their operating costs, according to CEO John Chen.

Its BBM messaging service remains one of the company's strongest areas, with 85 million active users per month. Its next update for BBM will try to monetize the service, offering virtual stickers and sponsored posts, but promises these things won't intrude on the core messaging experience.

Source: CNET

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