This would not come as a surprise as Blackberry is in a wobbly state. The current situation of the company is not one of a healthy one. Instead it is bleeding cash. The recent struggles to get a grip on the saturated mobile phone market has not been so kind on the mobile phone maker. Blackberry has undergone a lot of transitions and has seen a lot of changes in its hierarchy. The company also decided to finally enter into the foray of touch screen phone era at a time when the giants such as Samsung and Apple dominate the market.
US Sales Head Fired
It can be related to poor decision making at the top tiers of the company and even if decisions are right, they came in a tad late which resulted in the company responding very late to the market changes. Recently Blackberry announced in its shareholders meeting that they have fired the US Sales head, Richard Piasentin. The firing was done secretly and no grand announcement was made. It was later revealed in the shareholders meeting that this step had to be taken due to declining sales.
Blackberry 10 Not Strong Enough
The firing took place last month but was made public yesterday in the shareholders meeting. The departure is said to not come as a surprise as the new Blackberry models Z10 have not fared well in the US markets. Since its launch in spring, the sales prediction and forecast were weak and it was believed that hardly would Blackberry rake in huge profits. This all proved true and the launch in the US failed to dazzle customers enough to switch to Blackberry from IOS and Android. Even the current loyal Blackberry users weren’t moved enough.
CEO, Thorsten Heins, was said to claim nothing much except the launch in the US was a lesson well learned. It seems even he was not satisfied with the efforts put in the launch for the new model.
Blackberry unveiled its quarterly earnings a couple of days back and they turned out not to be as promising as it was hoped. It reported that the company has only been able to sell 2.7 million devices running the new OS that it developed, called the Blackberry 10. The company made a big bet and still stands on it strong in the belief that Blackberry 10 will be a big hit and turn the company over from the red to greener pastures. However so far the predictions have been more of a miss than a hit. Low Blackberry 10 sales aside, the company reported a $84 million loss for the last quarter.
Older Models Doing Better
The interesting fact is that even to date the older models of Blackberry and the older OS have sold well and have been going strong. The major of the sales it is getting is from the older models and not the newer ones. Blackberry went a major change in its structure and initially the company was known by the name RIM Blackberry. RIM stood for Research in Motion. RIM was dropped and Blackberry became the new name hoping to bring in good luck and fortunes for the company. However this is yet to see whether the company does rake in fortunes ever.