Blackberry revival hopes boosted by revenue rise
18 December 2015
- From the section Business
Blackberry has reported revenues of $548m for the three months to November – 12% higher than the previous quarter.
It was the struggling smartphone maker’s first quarter-on-quarter increase for more than two years.
The better-than-expected results give the Canadian company some hope that its turnaround plan is working.
Revenue was 31% lower than for the same period last year, but losses narrowed to $89m compared with a $148m deficit a year ago.
Chief executive John Chen said he was pleased with progress, as growth in enterprise software gained momentum and revenue rose across its “areas of focus”.
“Blackberry has a solid financial foundation, and we are executing well,” he said.
Last month, the company launched a new smartphone called the PRIV, the first to run on the Android platform rather than its own operating system.
The majority of the world’s smartphones run on the Google-developed Android.
Blackberry said the PRIV combined Blackberry-level security with access to the 1.6 million apps in the Google Play app store.
Mr Chen said the device had been well received and would be available on more mobile networks globally next year.
Blackberry aims to sell five million of the handsets a year. Although that is a fraction of the 48 million iPhones that Apple sold in the last quarter, Blackberry moved just 800,000 devices in the three months to August.
The PRIV costs about $700/£580 without a contract, putting it in line with the iPhone and premium Android devices.
Shares in Blackberry jumped 8% in morning trading in New York to $8.42, but the stock is still down by 25% this year.
The company is valued at just $4.5bn. In comparison Apple is worth $620bn.
This post was written by FSB News