BlackBerry suffering global slide as developing world shuns devices for low-cost Android phones

BlackBerry suffering global slide as developing world shuns devices for low-cost Android phones

Summary: According to the latest regulatory filing, BlackBerry's woes don't stop at home and in major Western markets. The developing world, once a powerhouse for the firm, is also losing faith.

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(Image: CNET)

BlackBerry's troubles aren't limited to North America and Europe. Those in the developing world, which once embraced the fruit-themed devices, are also shifting away from the once-proud phone maker.

According to its latest 6-K filing with the U.S. Securities and Exchange Commission, BlackBerry described how the "intense competition" from the wider smartphone circle is impacting the company's finances, and that much of the decline it saw in the U.S. market is "now being experienced globally."

Developing markets, typically those in the Middle East, India, and Indonesia, where BlackBerry has typically seen strong success, are rejecting BlackBerry devices in favor of lower-cost Android-based devices. But also, the lack of available apps for the company's next-generation platform is also cited as a major reason why the firm has slid in the Western markets.

It explains in full:

The increase in competition encountered by the Company in international markets is due to the recent entry into those markets of global competitors offering high end devices that compete with the Company’s BlackBerry 10 devices, as well as other competitors targeting those markets with lower end Android-based devices that compete with the Company’s lower cost devices. The decline can also be attributed to consumer preferences for devices with access to the broadest number of applications, such as those available in the iOS and Android environments. 

The company said at the end of its fiscal second quarter earnings in September, there were over 130,000 apps available for BlackBerry 10 smartphones, with far more — over 230,000 apps — available through its BlackBerry World, designed for older BlackBerry 7 devices.

According to The New York Times, publication of the filing was delayed due to the cancellation of BlackBerry's fiscal second quarter earnings call on Friday.

Typically companies offer a follow-up call for analysts and shareholders, but this was scrapped due to an earlier release, warning investors that the upcoming quarterly earnings were expected to be worse than first thought.

BlackBerry reported a $965 million loss following a massive inventory charge as a result of the poor sales of its Z10 smartphone. The smartphone maker only a week earlier announced it would cut 40 percent of its staff base as it continues to eat away at its vast cash reserves. During the quarter, BlackBerry dipped form $3.1 billion in cash to $2.6 billion.

Topics: BlackBerry, Smartphones

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  • Here in America

    It isn't looking good for BB either. My employer recently upgraded my BB Bold to a Q 10. After a month of trying, I gave up and convinced my boss to switch me to a Galaxy S4. The Q10 is simply not in the same league as The Samsung Android phones.
    krossbow
  • Face it

    Windows Phone is kicking BBs butt and is rapidly gaining market share outside the US. This is the nail in the coffin for BB or maybe the headstone on the grave. BB dug the hole and pulled the dirt in on top of themselves though.
    greywolf7
  • BB has only itself to blame....

    BB is now caught in a death spiral. You try and sell a tablet, promise the people that bought it that the new OS coming will really make a difference. People wait....then the day you launch your new Z10, you tell the table people, sorry we tried, but we couldn't make our new OS work as we promised. BUT feel free to buy a new phone with the OS we promised you. And now that we have this new OS, we won't be doing much with BB7, so either upgrade or stick with what you have. But hey if you stick with BB we will make BBM available for IOS and Android, so you can chat with your friends. On the evening you roll it out, you stop it in the next few days than say, it isn't ready but we will get back to you. BB has zero idea what it is and what it wants to be. The buyout will happen and then the company will be sold in pieces. BB RIP! You deserve it....
    Jake Campbell
  • How not to respond to the iPhone

    RIM (BlackBerry) brushed off the impact of the iPhone years ago. They felt consumers didn't want to do their typing on full touch screens like the iPhone, everyone loved and will continue to love their qwerty physical keyboards, they thought then. They released the BlackBerry Storm in 2008 as the answer to the iPhone and other Android phones. Only it wasn't like those other phones, It featured a touchscreen which reacts to physical pressing like a button (SurePress). After that experiment failed, the company has been in a slow decline ever since. They brushed off full touch screen phones as something consumers didn't really want and reacted way too late with the latest phones.
    dave95.