BlackBerry’s $4.4bn Loss and the subsequent five years deal with Foxconn

Though all may not have looked good for Blackberry after the announcement of third quarter loss of $4.4 billion, it seems that things are shaping up for the once smartphone market dominant player as it recently entered a five years deal with the world’s largest electronic parts manufacturer Foxconn. The company, last month, abandoned its plan of selling the company and the changes, which followed this decision, were the ousting of the CEO Thorsten Heins and the appointment of the interim CEO John Chen. The $4.4 billion loss, which translates into £2.7 billion, announced by Blackberry also included a big asset write down.

Blackberry, by virtue of this deal, is sure to benefit from Foxconn’s world class supply chain in addition to Foxconn’s access to the emerging markets. Foxconn, which is recognized for its ability of both designing and manufacturing of hardware after this deal, will take care of the hardware development for Blackberry while the internal design teams of Blackberry will now focus on the development of high end phones and software.

It is no secret that Blackberry’s market and sales have suffered after the emerging popularity of Apple and Samsung. Blackberry’s interim CEO John Chen said that the partnership deal between Foxconn and Blackberry is a demonstration of Blackberry’s long term commitment to the device market and reflects its determination to sustain its position of market leader in the secure end to end mobile solutions. This partnership will allow Blackberry to focus on developing mobiles with world class security, iconic designs, enterprise mobility management and software development along with leveraging Foxconn’s efficiency and scale for addressing the fast growing markets.

The first focus of this partnership between Blackberry and Foxconn will be a smartphone for the Indonesian and other emerging markets, which is scheduled for early 2014.

Sources:

http://www.bbc.co.uk/news/business-25461892

http://money.cnn.com/2013/12/20/technology/mobile/blackberry-earnings/index.htm

You might like:

Say Something Clever

*