WASHINGTON — Canada’s once proudest technology giant, BlackBerry, is on its last legs.
Reuters reported that BlackBerry’s plan to be sold to another company or group of investors is hitting a wall as investors and analysts question whether BlackBerry’s operations will be sustainable after it is sold by November (at least that is the hope of the company’s leaders).
The reboot of its famous BlackBerry smartphone (in addition to ditching its old name, Research in Motion (RIM)), was an abject failure as Apple and Samsung dominate the smartphone industry. Its CEO even said he was open to more ideas as the struggles mounted. More damage could come as telecommunications partners, consumers and business customers abandon the company and its devices. As the mantra goes in business, perception is reality.
If the struggling company cannot right its ways in the public and the market’s eyes, then it will not survive the next couple of months, says analysts. GMP Securities analyst Deepak Kaushal said, “Perception is nine tenths of reality and if customer and supplier confidence continues to fall it doesn’t matter how much cash they have on the balance sheet. Things could get worse”.
BlackBerry reported a loss of almost $1 billion this past quarter and is cutting 1/3 of its workforce, in addition to writing off their new smartphones, BlackBerry 10, as a major loss.